Third time lucky for Walyalup lease?

UP for approval Wednesday is the latest recommended retail lease proposal for the Fremantle Walyalup Civic Centre – an America’s Cup-era clothing shop.
City officers say a 220sqm clothing store (out of the 405sqm of retail space) on the corner of William Street and Newman Court was a good fit for Freo, celebrating “a turning point” in its history.
The proposed rent is $39,600 a year plus GST (for the next three years) and the City would contribute up to $120,000 towards the fit-out.
“Officers forecast that the net income for the terms of the lease, including council rates and factoring in the fit-out contribution, will be in the vicinity of $703,000,” according to minutes of the finance committee meeting on January 20.
The City has spent the past four years trying to attract a tenant. Its 2018-2019 campaign failed to attract any of the 130 hospitality operators approached outside of Fremantle. The first formal lease proposal ended in tears in early 2020 when the preferred tenderer pulled out after the City offered $1.3 million in inducements and no rent for the first three years for a 828sqm restaurant, bar and cafe venue overlooking Kings Square (Details at www.streetwisemedia.com.au/tender-history-repeats-over-kings-square).

Tender interest

Tweaking its selection criteria after a public outcry over a lack of transparency and good governance, City officers recommended a second lease proposal that offered the prime space to a single tenderer, Clancy’s Fish Club, this time without paying rent for the first 10 years. The proposal was sent back.
In August 2020, the City again released a tender, which closed on October 7, 2020, this time with no free rent clause. The City received no submissions, then advertised the property by Expression of Interest. Officers chose a submission by Wear 2 owner Jeremy Wild, who has operated in Fremantle for the past 11 years.
Notably, City officers state though the A-grade space offers a substantial opportunity for retail operators, “lettable commercial space offered as part of the Walyalup Civic Centre has come on to the market at a challenging time for the retail sector”.
They claim feedback collected directly from prospective tenants suggested retail operators have put a hold on considering any new premises or relocations: “This is based on many operators deciding to consolidate operations within existing locations to mitigate current risks associated with the recent impact of COVID, as opposed to making any moves to expand.
“As the building is in the final stages of construction, prospective tenants have been able to determine the physical ‘look and feel’ of the space and consider the surrounding environment.”