Noosa’s Hastings Street has long been known for its boutique retail offerings, beachside bars and relaxed vibe. But with high-end brands moving in and luxury international brands now eyeing off the street, competition for limited commercial space is hotter than ever.
Considering the traditionally tightly held market, Ray White Commercial Noosa & Sunshine Coast has undertaken significant activity in the street this year, including securing eight lease deals in 2024 and three major retail sales in the past three months alone.
The upshot is that demand has significantly driven rents upwards over the past 12 months. Minimum rentals are from circa $2,000/sqm ranging up to $9,000/sqm. Investment demand is following this trend with the latest sales in the street achieving yields of between 4% and 4.75%.
RWC principal Paul Butler says Hastings Street continues to dance to the beat of its own drum, bucking the retail slump seen in many other locations.
“Most retail areas and centres have faced a headwind over the last 12 to 18 months. Hastings Street has continued to defy retail trends due to reliable and consistent spending patterns from both locals and tourist customers,” Paul said.
“Noosa Heads and Sunshine Beach are now considered blue chip Queensland suburbs with a prestigious reputation and strong property values. The impact is that a range of boutique to international labels are now seeking positions in Hastings Street, some of which are connected to people with local residential property interests.”
PLANTING A SEED FOR HIGH-END RETAIL
The sale of popular independent boutique Goddess at 1/40 Hastings Street in February 2023 with its eclectic mix of laid-back designer brands represented a benchmark multiple for that type of business in the street.
Since then, the RWC team has secured eight further transactions in the street, seven of which were retail. RWC property consultant and Noosa specialist John Petralia said high-end businesses were finding creative ways to secure prime sites on the street.
“We’re seeing businesses in Hastings Street sold purely for the buyer to shut the business down and put in their own concept. This shows the strength of the precinct and the desire for business to be present in the street. Where a business is not performing or an owner is ready to move on, there is value in selling to someone who wants the location,” John explained.
Of the eight Hastings Street leases secured by RWC this year, all were retail, with lease terms of up to 10 years.
In September, Australian jewellery brand Arms of Eve opened its first Queensland brick and mortar store at 3/32 Hastings Street. Another upmarket player secured by RWC Noosa & Sunshine Coast on a five year lease, Arms of Eve has proven a hit, with fans lining up out the door to purchase their next favourite accessory.
More recently, luxury boho brand Camilla brought its signature style to the strip, placed by the RWC Noosa & Sunshine Coast team at 28a Hastings Street. The store opened on 15 November just in time for the Christmas tourist season. A strong lease was put in place on behalf of the owner with the rental rate at the top of the expected range for a shop this size.
MAKING AN IMPRESSION
The high-end appearance and quality fitouts of luxury brands is having a flow-on effect to other properties in the street. Owners and tenants are investing heavily into better fitouts, upgrading shopfronts and generally enhancing properties to match the premium aesthetic.
This collective improvement not only elevates the overall appeal of the area but also strengthens its reputation as a premier retail and lifestyle destination, driving further demand and capital growth.
Earlier in the year, Just Jeans moved out of 32 Hastings Street after 30 years, making way for the effortless cool of Aje, a contemporary Australian fashion brand worn by some of the world’s most famous women.
RWC property consultant David Brinkley, who closed the deal with Aje, said the brand was an excellent example of a designer brand making its mark on the street.
“Having a higher end group willing to invest in the property has really lifted the premises. The fitout and impressive floor to ceiling windows were designed by the brand’s in-house architects, elevating the streetscape to new heights. It looks fantastic,” said David.
WORTH THE WAIT
There are currently no vacancies on the Hastings Street front. With larger tenancies of 100sqm rare, people are starting to look well ahead, waiting 12-18 months to secure the right premises.
Paul Butler says that some big brands have been watching Noosa for a while, waiting until the right property became available before making their move.
“After COVID, many brands have been forced to think a bit outside the typical shopping centre model. With major centres having blanket policies over every tenant, a lot of retailers are choosing to position themselves in prime street front locations where there is more flexibility and every deal is unique,” Paul said.
The condensed and clearly defined nature of Hastings Street, along with its balance of fashion and food gives it an exclusive appeal according to David Brinkley.
“Hastings Street’s charm lies in its exclusivity—you can stroll its length in just five minutes, yet getting a foothold here as an investor is notoriously challenging.”
“Noosa is iconic; anyone who has travelled Australia’s east coast knows about it, and those who don’t usually know someone who has. It’s a renowned destination, traditionally seen as bulletproof for investors, consistently delivering capital growth year after year so it’s no surprise people are willing to wait,” David said.
LOOKING AHEAD TO 2025
The future of Hastings Street looks bright, with high demand predicted to continue and rental rates likely to climb further. Even older properties are being snapped up faster as newcomers see the potential for transformation.
There will continue to be very limited stock available into 2025 on an open market basis. So the trend of 2024 will continue with strong leasing demand driving both leasing and sales results.
With no vacancies and demand continuing to soar, now is the time to act. If you’re looking to lease, buy or invest in Hastings Street, contact the expert team at RWC Noosa & Sunshine Coast so we can help you find your foothold in this prestigious retail precinct.
Get in touch with our team on +617 5474 7600.
Offices in NOOSA | CALOUNDRA | MAROOCHYDORE
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The team at Ray White Commercial Noosa & Sunshine Coast has chalked up some impressive achievements for 2024 across the region from Maryborough in the North through to Noosa, Maroochydore, Landsborough, Caloundra and all areas in between. Following is a selection of interesting and diverse accomplishments for this year.