The past year has been one of the most active in retail leasing, with Sydney CBD dominated by the influx of international “fast fashion” and mainstream retailers – Uniqlo, Sephora, Forever 21 and soon to be H&M and Zara Home – all of which found a space in Pitt Street Mall.
Alex Alamsyah, Knight Frank's senior director of retail leasing, said despite the hype of "fast fashion in 2014", 2015 will be the year of luxury retailers.
Famous jeweller Cartier, is moving to a larger flagship store in 2015, covering 1,000 square metres over three levels in Castlereagh Street.
Mr Alamsyah said the move is because there is no more available stock on the Mall except the 85-square-metre Politix site at MidCity, with a lease expiry date in March 2015.
"It's all about demand versus supply; there has been, and always will be lots of demand but no supply, which means rents on Pitt Street Mall will climb higher and higher; the sky really is the limit!"
Mr Alamsyah said Pitt Street Mall was the undisputed most successful and strongest performing retail precinct in Sydney and Australia.
It is understood that Hype DC and Tag Heuer are paying about $1.5 million per annum and $1.4 million per annum respectively for about 100 square metres.
"Therefore secondary players like MUJI from Japan have no choice but to proceed with level one in the Galleries at 2 Park Street, replacing the ex-Freedom Furniture space and will open in 2015,' Mr Alamsyah said.
"Furthermore local retailers, Just Group and Sussans Group, may have to move out from Sydney Arcade and Glasshouse Pitt Street Mall for the forthcoming Forever 21, H&M and Zara Home respectively.
"On the other hand, Koko Black chocolate salon from Melbourne is taking over the Bon-Bon fine chocolate cafe at The Strand Arcade Pitt Street Mall and will open in February/ March 2015."
Mr Alamsyah said the coming year would be coloured by luxury retailers such as Franck Muller, IWC, Van Cleef & Arpels, Piaget, Panerai, Graff, Harry Winston, Saint Laurent, Alexander McQueen, Valentino, BCBG Max Azria, Dolce & Gabbana, to name a few.
"Luxury food and beverage and lifestyle like EATALY, Dean & Deluca, LEGOLAND and department stores like Marks & Spencer, Debenhams, Harvey Nichols, among others are also coming," Mr Alamsyah said.
