Where is Westfield Sydney located?
Westfield Sydney is bound by Pitt St Mall, Castlereagh St and Market St and has direct frontage to all three streets. This development amalgamated the previous Centrepoint, Imperial Arcade and Skygarden. Westfield Sydney is situated between Myer and David Jones, connected under Castlereagh St to David Jones and linked to Myer above Pitt St.
What is the tenancy mix of Westfield Sydney?
Westfield Sydney is spread over seven levels with a total gross leasable area (GLA) of 36,000m2. The centre will accommodate 260 retailers with an emphasis on international brands and high profile Australian retailers. These include the launch of international retailers such as Miu Miu, Diane Von Furstenberg, Mulberry, Zara, Christian Louboutin, Bottega Veneta and Gap. Domestic fashion retailers include Sass & Bide, Sportsgirl, Ksubi Zimmerman, Supre, One Teaspoon, Fleur Wood, Bardot and Tigerlily. The presence of international retailers has meant the demand for smaller stores has marginally diminished. For example, Esprit has leased a 1,260m2 store, Gap has acquired an 800m2 store, Guess’s flagship store is just below 600m2 and the long awaited Zara is a three level tenancy. The size of these stores are atypical to the usual 80 to 100m2 formats that dominate Australian shopping, therefore it will be worthwhile to observe how shopping centres will respond to these shifting demands in the future.
What are Westfield Sydney retailers paying?
Stage One of Westfield Sydney opened in October 2010 and features approximately 145 retailers with average lease terms ranging from 5.5 to 6.5 years. Fashion retailers are paying approximately $3,000/m2 and footwear retailers are paying slightly less at $2,500/m2.
What is the outlook for Westfield Sydney retailers?
It has been well-documented that Zara had its largest ever global opening sales performance. The success of Zara has prompted international retailers such as H&M and Topshop to actively seek a flagship into the Australian market. However, there are few opportunities for these retailers as other shopping centres do not have the larger formats that are demanded by these international retailers.
Other retailers have reported mixed results in the new Sydney Westfield; however this is not unusual for a new centre, as it often takes up to two years for a centre to become “stable”. Time will tell whether the international flavour of the centre turns out to be successful amongst Sydney CBD shoppers.
Leasing Information Services is a Sydney -based independent online provider of retail leasing data in Australia. It offers rental comparisons, occupancy costs, floor plans and other customisable reports. Visit www.leaseinfo.com.au