THE high demand for retail space in the Melbourne CBD continues to defy the general gloom surrounding the sector.
Australian clothing giant Cotton On Group is set to open its third store on Elizabeth Street in a deal negotiated by Colliers International.
Ben Tremellen, Colliers retail manager, said Cotton On Group had secured 130 square metres of prime retail space at 112 Elizabeth Street at about $3000 per square metre as part of a seven-year deal.
Mr Tremellen said it would be the popular fashion brand's third store along the highly sought-after retail strip.
The company would use the space to launch its stationery concept store, TYPO.
Mr Tremellen said there was great demand for space in the CBD, particular on quality retail strips such as Elizabeth Street.
''This market hasn't missed a beat, with vacancy rates currently sitting at record lows around 3 per cent and rates per square metre remaining consistent across the city,'' he said.
The Cotton On deal follows popular Melbourne bookstore Reader's Feast signing up to lease 900 square metres in one of the CBD's most historic retail buildings, Georges on Collins, just before Christmas.
Reader's Feast general manager Mary Dalmau moved into the landmark building with 20 staff after closing the doors to the store that she ran for 20 years at the corner of Swanston and Bourke streets earlier last year.
