Bundaberg businesses blame rising rents and dearth of parking for decline of once-thriving CBD

Business owners and shoppers have called on the Bundaberg council for more support as data shows a once-thriving CBD is becoming a commercial desert.

Even the most casual observer has noticed the increasing number of vacant shopfronts throughout the Bundaberg central business district.

In apparent contradiction to Bundaberg’s skyrocketing growth fuelled by thousands of interstate migrants per year, once-thriving arcades and shopping strips remain vacant as businesses fold or move to suburban shopping centres and online stores.

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The owner of Vanish Skin Laser Clinic on Woongarra St, Megan O’Donnell, said she had seen a sharp decline in the shops occupying the nearby City Centre Arcade since she opened her business five years ago.

Ms O'Donnell said she has seen a sharp decline in the shops occupying the nearby City Centre Arcade since she opened her business five years ago.

“There’s shops in the arcade that are just not there now that were there five years ago, and they just don’t seem to be replenishing the space,” Ms O’Donnell said.

Ms O’Donnell is unequivocal in blaming skyrocketing rents for overwhelming her bottom line, making it impossible to keep up with the rising cost of supplies.

She downsized her store in 2023, relinquishing the neighbouring shop space in order to keep up with rent increases, but said it will take at least 12 months in order to recoup the money she had to outlay in reconfiguring the smaller store.

“I think it’s probably landlords’ unwillingness to negotiate on rent, with rents just being extreme,” she said.

“To fit out a shop and get set up somewhere is extremely expensive, and when you don’t have the support of the landlord behind you, it’s very, very hard.

“If I had a choice, I would work from my home full time just so that I can save 100 per cent on my rent.”

CBD business owner Megan O’Donnell called on local and state governments to do more to support local businesses rather than giving tax breaks to large corporations.

Ms O’Donnell said the declining foot traffic she had seen over the past five years was exacerbated by challenges with parking close to her store, with most of her appointments exceeding the one hour limit provided by the parks immediately in front of her business.

“The CBD is the heart of Bundaberg, so we should have a bustling metropolis and it’s just not, it’s quiet,” she said.

“There’s no parking available, so when you do come in town just even navigating Bourbong St is a nightmare.

“I find that the bank and probably the council workers take up all of the available car parks for these local businesses.”

When questioned, Bundaberg Council pointed out that all parking along Woongarra St is regulated and timed parking, implying that the lack of available parking is not due to use by council employees.

Ms O’Donnell said any guarantees around long-term fixed rents would be a significant help, and called on government at all levels to better support businesses.

“Having the uncertainty of not knowing what my rent is going to be in August of this year is frightening,” she said.

“Local and state governments absolutely get behind local business … why aren’t you supporting local business and helping people like me as opposed to helping big companies that make billions and billions of dollars.

“Here we are struggling as independent family owned and operated businesses that just don’t get the support that these big guys do.”

Bundaberg Chamber of Commerce president Tim Sayre said the data accords with Ms O’Donnell’s experience, with the chamber tracking an upward trend in shop vacancies.

Mr Sayre said the main driver for businesses moving away from the CBD included cost of living pressures, with business owners bearing the brunt of interest rate increases through the loans portfolio.

“Many have business loans as well as home loans, so any increase in interest rates delivers a double hit to those small business owners,” Mr Sayre said.

“Couple with this the increases in electricity, wages, and transport coasts and many are contemplating letting staff go or relocating to less expensive shop frontage, even working from home if possible, and closing the shop front altogether is a consideration.”

Bundaberg Chamber of Commerce president Tim Sayre hoped to see council step up its activities in support of local businesses, such as the annual Pageant of Lights.

With large “place activations” such as the Pageant of Lights helping to attract crowds to the CBD, Mr Sayre hopes to see council bring back initiatives such as the ‘I Love Bundaberg’ campaign in support of local businesses.

“The Bundaberg Regional Council continues to play a role in the ongoing success of the CBD, as to the businesses themselves and the landlords of the buildings,” he said.

“After the elections, we hope to see council step up its activities regarding the ongoing development of the CBD and the associated civic and cultural arts precinct.

“I too continue to encourage everybody to shop local whenever possible and support our all our great local businesses who support and give so much to the Bundaberg community.”

Shopper Helen Ross said she and her friends had noticed a “very saddening” decline in the CBD since the peak Covid-19 period of 2022-2023.

“We’ve got a lovely streetscape, and unfortunately it’s been let go down and down,” she said.

Ms Ross said while she understood landlords were under pressure to raise rents due to rising interest rates, she couldn’t see the sense in forcing out valuable tenants only to have the shop stand empty.

Shopper Helen Ross said the decline she and her friends had seen in the CBD was "very saddening".

With the council election campaign well underway, Ms Ross said she was interested to hear from candidates as to possible solutions.

“I know you can’t give properties away, but if you’re a landlord and you have a good tenant you’re better off to charge a bit less than you think you want rather than let it sit there and deteriorate ” she said.

“We’ve got council elections coming up, maybe someone wants to campaign on it.”

Incumbent Mayor Jack Dempsey said a shift in trading patterns, with more stores moving to shopping centres or online stores, was representative of a national and global trend, but agreed it was important to maintain the health of the CBD as the “beating heart” of the community.

Mr Dempsey said it was the responsibility of government at all levels to ensure a thriving CBD, with council’s CBD revitalisation plan awaiting state and federal funding opportunities.

“After many years of community consultation, we are awaiting on suitable state and federal government funding opportunities,” Mr Dempsey said.

“I believe the ratepayers of the Bundaberg region should not have to front the full cost of delivering these upgrades.”

For council’s part, infrastructure improvements and using local suppliers for council initiatives wherever possible were contributing towards a reinvigoration of the CBD, Mr Dempsey said.

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On the subject of parking, Mr Dempsey said the relocation of council staff from Bargara to the CBD had a positive impact on traders, and cited a recent study showing the average resident attending businesses would only walk a small distance compared to people parking and walking around a shopping centre.