Brisbane high streets are ghost towns due to high rents

Already struggling in a weakened economy, small business owners are pulling down the shutters, even on retail strips that were once counted as glittering jewels of inner-city Brisbane. And there’s one big issue copping the blame.

EXCESSIVE store rents are turning Brisbane’s traditional high streets into shopping wastelands with some areas recording 40 per cent vacancies.

Already struggling in a weakened economy small business owners are pulling down the shutters despite massive residential investment in areas such as Fortitude Valley, Paddington and New Farm.

This week, The Courier Mail counted retail strips that were once glittering jewels of inner city Brisbane, revealing the stark amount of shops available for rent.

In an approximately 200 metre strip on both Given Terrace, Paddington and a Racecourse Road, Ascot, vacant stores are making up almost 30 per cent of the strip’s real estate.

The New Farm Cinema precinct on Brunswick Street is faring even worse with nearly 40 per cent of shops laying empty.

Empty shops at New Farm on Brunswick St. Picture: Annette Dew

Susan Arcadipane’s hair and beauty salon was forced out of both Brunswick Street and Racecourse Road due to “high rents” imposed by “greedy landlords”.

Ms Arcadipane said she was in New Farm for six years before being pushed out by her landlords who demanded double the rent after she asked them to install burglar proof windows.

“There was a lack of support from landlords,” she said.

President of Racecourse Road Business Group and business owner, Kate Peereboom said the biggest challenges to retail on the iconic street is “high rent” and the lack of maintenance put into infrastructure by landlords.

“They’re premium rents, very high and have not come down at all and in fact they have continued to go up each year,” she said.

“The buildings are not being maintained to a high enough standard … we’ve got some buildings here which do need some urgent work.”

Susi Mayer from Gold Coast. Empty shop fronts in New Farm on Brunswick St. Picture: Annette Dew

According to market sources, inner city high street rentals for boutique retail spaces in Brisbane range from $1000 to $1650 a year per square metre, depending on location and quality of the property.

Chesters Real Estate Director, Michael Platsis said “high” and “not sustainable rents” are plaguing many of Brisbane’s high streets.

Mr Platsis said landlords on Racecourse Road don’t have a common goal frustrating the importance of developing a street identity.

“You have a mixed bag of owners, some of them have the right idea and a lot don’t.”

Over on Given Terrace, Chair of the Paddington Business Group, Karen Harley said parking and broader economic woes are the big issues facing the strip.

“I know all the vacancies along here [Given Terrace] and I know what happened with those shops … they were never invested in the community,” she said.

Vacant shopfront on Given Tce at Paddington.

Queensland University of Technology professor Gary Mortimer says “Given Terrace is exposed to matches and events at Suncorp, that some can often run from a Thursday until Sunday. It changes the parking conditions in the street, once again limiting visitors. Similarly, at Racecourse Road, on a Saturday during horse racing”.

Disappointing retail numbers following this week’s record low interest rate cut to one per cent has experts concerned for the health of the economy.

Retail spending rose 0.1 per cent in May to $27.3 billion according to seasonally adjusted data released by the Australian Bureau of Statistics, but missed market expectations for a 0.2 per cent rise.

AMP Capital chief economist Shane Oliver said retail spending would likely remain weak even though rate cuts and signs of a housing market recovery could improve sentiment.

National Retail Association CEO Dominique Lamb said “investment” and “activation” of shops is a must to regenerate the depressed state of high streets.

“In terms of Given Terrace and Racecourse Road … we haven’t seen a focus on some of those areas for sometime.”

The emergence of shopping malls in the 70s and 80s and more recently the boom of online retail has been a jeopardising factor to the health of shopfronts. Given Tce, Paddington, pictured.

The emergence of shopping malls in the 70s and 80s and more recently the boom of online retail has been a jeopardising factor to the health of shopfronts, but Ms Lamb says its not all doom and gloom with a growing demand for boutique destination strips.

“Strip shops that have had renovations and activation being done in or around them are very successful.”

Mr Platsis says places such as James Street have been successful due to a consolidation in the amount of landlords.

“They don’t want to leave anything on the table but they are sensible on rents for the most part,” he said.

“When you get an inconsistent agenda and the owners don’t care and put in any tenant and the highest rents to the detriment of the overall precinct.”

Expert Dr Mortimer said its about getting the “retail mix right”.

“There is a mix of fashion, food, bars and entertainment … if you compare that to Racecourse Road at Ascot, or Given Terrace, the balance isn’t right,” he said.

Both Racecourse Road Business Group and Paddington Business Group have been received respective grants of around $300,000 and $250,000 from all levels of government in an attempt to revitalise the strips.

BOUTIQUES GIVEN A SECOND CHANCE

BOUTIQUES like Miss Henry could be the saving grace to Brisbane’s high street retail drought.

While concerned about vacant lots around her, owner Nicole Byrne says “comparison is the theft of joy”.

Buying the shop 12 years ago, Ms Bryne has earned her stripes as one of the city’s top stylists and says the boutique has matured as she has.

Nicole Byrne owner of Miss Henry Boutique pictured at her Paddington Store. Picture: AAP/David Clark

“I think when people see for lease signs they think its all doom and gloom, sometimes people leave because they’ve moved overseas or putting time into another project, not necessarily because their business has gone bust,” she said.

“In an area like this one, a genuine rapport with people is needed. A business with a little sincerity and love in a high tech age goes a long way, as opposed to setting up shop, paying people to run it and hoping for the best.”

The 36-year-old businesswoman said parking restrictions on game day is a challenge and on-street parking on the terrace should be metered, to stop people parking all day on two hour parking zones.

Ms Byrne who is commonly mistaken as Miss Henry, believes her success relies in her relationship with her clientele and her growing engagement on social media.

“Instagram plays such a huge part of business these days of driving and getting engagement,” she said.

Ms Byrne’s also said the strength of high streets is their ability to build a community with other tenants and support each other by word of mouth referrals.