A shortage of showroom sites along Nepean Highway from Brighton to Mentone is continuing to increase sale prices and rental rates. As a result, more businesses are looking for alternative commercial locations in and around the tightly-held Bayside area. This has contributed to more interest in large commercial sites along feeder routes that have established infrastructure. A prime example is Bay Road, Cheltenham, which is the primary link between Beach Road, Nepean Highway and Southland shopping centre.
With its close proximity to several Bayside suburbs, showrooms and retailers along Bay Road are able to reach a large number of high income households.
According to Census data from the ABS, median annual household income in Bayside was $94,950 in 2011. This was around 48% higher than the national average. Further, median annual household income in Bayside increased at an annualised rate of 4.9% from 2006. This was faster than growth in the national average over the same years of 3.8%. The strong growth rate for Bayside is expected to continue through 2016, with Bayside incomes also remaining significantly higher than the national average.
Median annual household incomes are higher in Bayside due to a greater number of higher-paid occupations. In 2006, 53.8% of employed people aged 15 and over were professionals or managers. This is much higher than the national average of 34.2%. Some growth in the Bayside percentage is forecast for 2016, with the national average expected to remain stable.
The strong Bayside demographics are a major drawcard for retailers, showrooms and other retailers along Bay Road. These consumers often prefer the convenience of local shopping and services, and may be reluctant to travel across the Nepean Highway. Increases in the number of these consumers visiting Bay Road locations are bringing more services to the area, such as child care centres, cafes, gyms and recreation centres.
According to Director, Matt Nichols, “The transformation of Bay Road, Cheltenham, from industrial hub to showroom and retail precinct is continuing, which has had a positive impact on land values. We are now selling Commercial 2 land from around $600psm. This is still the cheapest commercial land in Bayside, considering Nichols Crowder recently sold land in Brighton for $6,500psm.”
Following in the footsteps of ALDI’s new store just down the road from Fitness First, several new developments will soon be bringing more showroom and retail options to Bay Road. An example of this is a new development at 329 Bay Road, which will have showroom, office and warehouse components. In addition to this development, a range of showrooms and retailers is expected to move into Bay Road sites in the future.
According to retail leasing specialist, Sharryn Pottenger, “We have received interest from various larger format retailers that are unable to occupy space in the traditional strips due to space requirements and high rents. These include pet supply retailers, liquor retailers, and large chemist chains that want a Bayside presence and are keen to take advantage of the unique Bay Road exposure.”