National retailers and professional services are among those in negotiations to lease a premises in Warrnambool's Glasshouse Plaza.
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Warrnambool's Ludeman Real Estate commercial agent James Wright said interest in the front-facing premises, previously occupied by Fiddle & Fern Road which relocated to Liebig Street in November 2023, wasn't surprising given its Koroit Street location and surrounding businesses.
Mr Wright said it was fielding at least one inquiry per week from big businesses wanting to lease the 213-square-metre property, opposite Target.
"It's in a prime spot," Mr Wright said. "You've got the post office, the banks - Westpac and NAB. We'll end up with one of the major tenants to go in there at some stage.
"If you're a major tenant you want the best foot traffic and to be linked in between the banks. The post office is the major drawcard with businesses dropping the post off.
"We've been in negotiations for a little while back and forth with a couple of big tenancies."
Mr Wright said while he couldn't divulge any specific information, interest included large retailers or professional services-type businesses.
Mr Wright said it "could go either way" with "multiple applications in".
"The market is still there for it," he said. "It's a prominent site and your square meterage rate is a lot higher. The smaller tenancies just won't be able to deal with the rent.
"Once you start that discussion with fit-out costs it really appeals to an ASX company or a larger franchise group."
He said while the negotiations were ongoing and it could be occupied in the first half of the year, it was also reliant on the fit-out and builders' availability which was slowly returning to pre-COVID levels.
Ludeman's also has another 100 square-metre property within the Glasshouse Plaza up for lease, with spiritual boutique Willow & Saige closing its doors at the plaza on December 16, 2023 in readiness for its move to Liebig Street.
Mr Wright said bigger businesses were less inclined to be affected by market conditions.
"It's your lower owner-occupied properties or sole trader-type ones, they're the ones who are struggling a little bit, especially since July 2023," he said.
"There's been a few break leases around the 100-squares size. Whereas your bigger guys, their products and services are too good, they'll continue to move through.
"If you look at the tenancies, it doesn't matter what the market's doing. (Multinational electronics group) Jaycar filled up and locked in long term.
"Those bigger guys will come in and set up. It doesn't really matter about market conditions as much."
He said during the past three years the city's commercial properties had been tightly held, which made it difficult for businesses wanting to move but it had "slightly opened up" more recently.
"You've got those bigger guys looking to come to town, they're still there and at the other end of it you've got businesses that need to move into more compliant sites to meet regulations," he said.
"There is a few businesses that have leased over size in space and are slowly consolidating."
Mr Wright said Ludeman's continued to get inquiries from businesses wanting to establish Warrnambool stores with the city's growing population and increase in larger retailers helping to drive further multi-national interest and employment.
He said "bigger guys", such as Officeworks and JB Hi-Fi, which opened stores in 2023, had been looking to come for a few years "but you've got to get big enough square meterage for them to come".
"Four or five years ago we didn't have a big enough population but now we're definitely moving into that realm where those guys want to come in," he said.
