Press

“…Melbourne’s CBD retail vacancy rates have recorded a five-year low of about 5 per cent, significantly below the national CBD retail average of 12 per cent. Insiders hope the David Jones sale signals renewed confidence in the CBD retail sector, which has transformed dramatically since pandemic-era vacancy rates plagued the precinct.”

Further cementing the area’s revival, JD Sports has secured a significant portion of the Bourke Street Mall frontage at the new Melbourne Walk development, which topped out in October last year.

Colliers’ associate director, head of retail leasing Victoria Tom Larwill told The Urban Developer that “the retail landscape in Melbourne’s CBD continues to experience significant growth, with the Bourke Street Mall positioned at the heart of this revitalisation”.

Larwill said the JD Sports announcement has sparked significant interest from retailers worldwide, with “many of these brands now choosing Melbourne as their first entry point into the Australian market”.

Steadfast Capital has unveiled its anchor tenant at Melbourne Walk, formerly the Walk Arcade, as JD Sports – a leading global omnichannel retailer of sports lifestyle and fashion brands. Handled by Colliers, the deal marks the largest retail leasing transaction in Melbourne’s CBD for 2024.

With a significant portion of the Bourke Street Mall frontage, JD Sports’ tenancy will span approximately 1,631m2 of retail space across the ground floor and level one of Melbourne Walk. The location is JD Sports’ second Melbourne CBD store and will be the retailer’s largest Australian flagship store.

Back in Melbourne’s CBD, the former Walk Arcade in Bourke St, now known as Melbourne Walk, announced in December that its new anchor tenant would be JD Sports.

The arcade was built in the 1980s, incorporating older buildings, and was refurbished in 1991, but closed its doors in 2020.

Developer Steadfast Capital’s $100m-plus plans to redevelop the site were approved by the City of Melbourne that year.

Construction is underway to transform the arcade into a mixed-use retail and hotel site offering more than 37,164sq m of gross floor area, with up to 35 tenancies across three levels.

JD Sports has been announced as the anchor tenant at Melbourne Walk, formerly the Walk Arcade, by Steadfast Capital. Handled by Colliers, the deal marks the largest retail leasing transaction in Melbourne’s CBD for 2024.

With a significant portion of the Bourke Street Mall frontage, JD Sports’ tenancy will span approximately 1,631 square metres of retail space across ground floor and level one of Melbourne Walk. The location is JD Sports’ second Melbourne CBD store and will be the retailer’s largest Australian flagship store.

Next door, on a walk through of the Melbourne Walk site, project manager Michael Jansen from builder Hickory said the majority of development had historically always been on the northern side of the Bourke Street Mall.

“This is the first time that we’re seeing multiple developments, redevelopments, repositioning of assets on the southern side of Bourke Street Mall,” he said. “It’s actually bringing the southern side of the Bourke Street Mall back into play. There’s always been retail over this side, but all the big new shiny objects have always been on the northern side.”

Next door, on a walk through of the Melbourne Walk site, project manager Michael Jansen from builder Hickory said the majority of development had historically always been on the northern side of the Bourke Street Mall.

“This is the first time that we’re seeing multiple developments, redevelopments, repositioning of assets on the southern side of Bourke Street Mall,” he said. “It’s actually bringing the southern side of the Bourke Street Mall back into play. There’s always been retail over this side, but all the big new shiny objects have always been on the northern side.”

Steadfast Capital has unveiled its anchor tenant at Melbourne Walk, formerly the Walk  Arcade, as JD Sports, a leading global omnichannel retailer of Sports Lifestyle and Fashion brands.

Handled by Colliers, the deal marks the largest retail leasing transaction in Melbourne’s CBD for 2024.

With a significant portion of the Bourke Street Mall frontage, JD Sports’ tenancy will span approximately 1,631 sqm of retail space across ground floor and level one of Melbourne Walk.

The 3,600sqm site bound by Bourke Street, Little Collins Street, The Causeway and Union Lane will become the centrepiece of the Bourke Street Mall revitalisation, and includes 6,000sqm of retail alongside IHG Hotels & Resorts’ first Australian dual-branded hotel, a Hotel Indigo and a Holiday Inn offering more than 450 rooms over nine levels.

Attending the topping out ceremony, City of Melbourne Lord Mayor Nick Reece said the development will enhance the city’s status as a thriving retail precinct and a must-visit destination.

“Intelligent developments like Melbourne Walk show ongoing confidence in Melbourne’s CBD as the best place in Australia to do business,” said Mr Reece.

The development, from Little Collins Street to Bourke Street Mall between Elizabeth and Swanston streets, will feature flagship retail spaces, boutique concept stores and a rooftop restaurant.

Melbourne Walk’s first occupant is IHG Hotels & Resorts’ first dual-branded hotel in Australia, which will comprise Holiday Inn and Hotel Indigo brands and offer 452 rooms on levels 2 to 10 of the redeveloped site.

“IHG Hotels and Resorts is proud to be partnering with Steadfast Capital on the Melbourne Walk redevelopment and greatly appreciates the significant investment Steadfast has made in the revitalisation of Melbourne and the accommodation sector more broadly,” said IHG Hotels and Resorts Managing Director – Australasia and Pacific, Matt Tripolone.

“I’m looking forward to the doors opening in 2025 and providing guests of all types with the experience that appeals to them – whether its Hotel Indigo Little Collins’ neighbourhood story or Holiday Inn Melbourne Bourke Street Mall’s iconic brand.”

IHG Hotels & Resorts will be Melbourne Walk’s first occupant, with its first dual-branded hotel in Australia – the Holiday Inn and Hotel Indigo brands – offering a total of 452 rooms across levels 2 to 10 of the redeveloped site.

Holiday Inn Melbourne Bourke Street Mall will be a new and modern 273-room hotel designed to cater to both business and leisure travellers while Hotel Indigo Little Collins will offer 179-rooms in a boutique style experience, alongside a restaurant and bar.

The centrepiece of the Bourke Street Mall revitalisation, Melbourne Walk officially topped out in September, marked by a ceremony attended by the City of Melbourne Lord Mayor Nicholas Reece.

Developed by Steadfast Capital and built by Hickory Group, the mixed-use retail and hotel development will be the first project delivered in Bourke Street Mall in more than 50 years.

Melbourne Walk, the first built project in Bourke Street Mall for more than 50 years, is one step closer to completion following a topping out ceremony this week.

Designed by Buchan, Melbourne Walk celebrates the site’s rich heritage and Melbourne’s renowned laneway culture.

The 3,600sqm site bound by Bourke Street, Little Collins Street, The Causeway and Union Lane will become the centrepiece of the Bourke Street Mall revitalisation, and includes 6,000sqm of retail alongside IHG Hotels & Resorts’ first Australian dual-branded hotel, a Hotel Indigo and a Holiday Inn offering more than 450 rooms over nine levels.

The $200 million Melbourne Walk project is billed as the first new redevelopment in the mall for 50 years, with eight buildings and an arcade gutted to make way for two new hotels. The 3600 square-metre project is expected to be finished next year.

Next door, at 299 Bourke Street, the old David Jones store is also being renovated to become a new retail centre and office space. Two other buildings further along the mall, near Swanston Street, are also up for sale.

Melbourne Walk (formerly known as The Walk), located right in the heart of the bustling Bourke Street Mall, flanked by the graffiti street art Union Lane and The Causeway lane, is set to strengthen the offerings at this strategic Melbourne CBD’s core retail precinct.

With construction already underway, Steadfast Capital will turn one of Melbourne’s most iconic CBD arcades into an encapsulating mixed-use retail and dual-branded hotel destination, combining the creation of a new triple-volume skylight arcade within a collection of new and heritage façades.

The first new redevelopment in Melbourne’s Bourke Street Mall for more than 50 years has finally broken ground, paving the way for the revitalisation of an historic CBD destination.

Steadfast Capital’s mixed-use project, Melbourne Walk, formerly known as The Walk Arcade, encapsulates eight separate buildings between Little Collins Street and Bourke Street Mall.

The $200 million rejuvenation plans include an expansion topping the precinct with 450 hotel rooms across two properties—a 180-room Hotel Indigo and 270-room Holiday Inn—along with a public rooftop bar and private gym for guests.

Construction has officially commenced on Steadfast Capital’s Melbourne Walk, formerly known as The Walk Arcade, the first new Bourke Street Mall redevelopment in over 50 years.

The project will see the arcade, which encapsulates eight separate buildings between Little Collins Street and Bourke Street Mall, revitalised and expanded to deliver a mixed-use hotel and retail precinct. Hickory have been appointed as builder to bring the project to life.

Designed by Buchan, Melbourne Walk will retain, protect, and restore key Bourke Street façades including Diamond House, Public Benefit Bootery, Allans Building and York Building.

An official ground breaking ceremony was held on site this week, attended by Marji Kennedy from City Of Melbourne, Matt Cohen from Development of Environment, Land, Water and Planning, and Major Brendan Nottle from Salvation Army. Eugene Teo from Shorea Capital, Development Advisors to Steadfast Capital, Hayden Djakic from Buchan, and Hickory’s Managing Director George Abraham spoke at the sod-turning.

The site, known as The Walk arcade, spans 3,600 square metres across eight separate building footprints. Designed by Buchan, the redevelopment will include 6,000 square metres of retail and hotel spaces

The new Melbourne Walk will be strategically located on Melbourne’s established north-south pedestrian trail in the city’s central retail precinct. Lead architect Hayden Djakic said the design respects the site’s rich heritage – bounded by historic streets like Little Collins, The Causeway and Union Lane – while contributing something new to Melbourne’s urban fabric.