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Retail rents on the rise as foreign brands jostle for space in Australia

Retail tenants are getting ready for a round of rent increases in Australia’s prime city thoroughfares as the influx of international brands absorbs space, forcing local competitors to pay up or move out.

While many new leases are being signed in shopping centres at discounts of up to 10 percent, the popular strips being targeted by new brands are being handed rent increases of more than 10 percent.

European fashion retailer H&M is said to be close to signing a lease at 345 George Street in Sydney. The owner of the property, ISPT, said talks were progressing, but no deal had been signed yet. H&M has signed a deal for ISPT’s Melbourne GPO site.