Pop-up shops 'not the fix' for city heart

Real estate agent offers a different agenda for revitalisation of CBD

Mackay's city centre revitalisation strategy needs to focus on multiple issues. Picture: Tony Martin

MACKAY Regional Council's plans to revitalise the city heart have run into opposition.

The council is proposing landlords fill empty store fronts with a smorgasbord of short-term tenants who pay nominal or no rent in an attempt to bring traffic back to the CBD; but some landlords and estate agents have said they don't think this will work.

Professionals Mackay commercial real estate agent Serge Doumergue said he believed the way to improve the economic fortunes of the city heart was a more "comprehensive and realistic” approach.

"The whole thing is it has to work together. You can't just focus on one aspect,” he said.

Mr Doumergue acknowledged that the rent was currently "too much” for tenants, who are not recouping the cost through their businesses.

"On the whole, yes, landlords are charging too much,” he said. "This is because a lot of landlords bought (property) in better economic climates and they have mortgages to meet. They also have to try and meet their expenses.”

These expenses, he explains, include city centre levies "in the thousands”, natural disaster insurance, maintenance and more.

"That contributes to business struggling.” he said.

Mr Doumergue said the current economic climate had left landlords in an awkward position where they had to choose between accepting low rent and having an empty building.

First on his list to improve the city centre is car parking. Limiting it to one hour, he said limited the time people were spending in the area.

"They need to increase car parking to two hours,” he said.

"In Caneland you can go park for however many hours... there are far too many empty shops here and to fill those there are many factors...

"Car parking is one of them, so your clients can come and visit.”

Next on his list is the city centre levy and what he says is exorbitant natural disaster insurance.

The City Centre Management Levy is collected by council and brings in around $1million in revenue each year. A council spokesman said the levy paid for city centre projects like Chinese New Year and New Year's Eve celebrations, as well as providing support for the Italian Street Party, Bluewater Fling and the Greater Whitsunday Farmers' Market.

Mr Doumergue also cited landlords in the city heart being hit with large insurance bills because of their location in North Queensland.

"[Landlords] pay insurance 'above the 26 th parallel' due to the cyclones and this is very expensive,” he said.

A solution could mean making it less expensive for landlords, which could then be passed down to tenants.

He suggested the levy be waived temporarily, or permanently, and relevant bodies lobby the Insurance Council of Australia to secure landlords lower outgoings, something they could then pass on to their tenants.

"Then it is easier for owners to ask for less because their outgoings are less,” he said.

"The whole thing is that it has to work together you can't focus on just one aspect.”

The council has formed a small group to work with landlords with property in the city heart to come up with a solution.

Mayor Greg Williamson has previously told the Daily Mercury about his concerns regarding out of town landlords without "investment in community outcomes”.

"When you don't have landlords that are invested in community outcomes, that is an issue,” he has said.

"When you look at the high number of shop fronts that are vacant, it's a worry, and we are trying to offer some solutions.”

Originally published as Pop-up shops 'not the fix' for city heart