This Week In The Wilds Of Perth


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Victoria Park

Calvin is a Malaysian-Australian running his first business. He is more interested in community development than his own bottom line. Perfect. We need retailers who are in it for humanity. The Town of Vic park has recently completed a parklet project in front of his shop. Why? Calvin is the agent for community development and the parklet facilitates dwell-time, incidental contact, walkability and traffic calming. All community development happens through our retailers. Thank you Calvin.

Claremont

"We've had a great Xmas" beams the gorgeous Anne Day (left) of The Lane Bookshop in Old Theatre Lane.  She shows me the pictures of celebrities lauding her beautiful store. Should we start a collective of local book shops? Like frogs, they indicate the health and diversity of a place.

Below: It doesn't get better than this. Astonishing Old Theatre Lane

Below: This is Bay View Terrace, Claremont. Pretty isn't it?

North Fremantle

Hamish Fleming started Flipside and revolutionised burgers for Perth. Smart fella then opened Mrs Browns (small bar) right next door. Then he bought the Matilda Antiques building and now we have a restaurant at that building, on the park. He saw the potential in North Fremantle. Good chap.

Leederville

"Leederville is so vibrant today. All the restaurants are full."

Mount Lawley

"Mt Lawley's on fire."

Below: See this? This is one of thousands-of front-doors surrounding Mt Lawley and probably frequenting Beaufort St. for their essential services. Behind this door is a person. And they will know what's missing from our mainstreet. This is just one of the many flats near the beautiful Beaufort Street Mt Lawley and inside is an answer to 'the vibrant Mainstreet' problem.

Fremantle

High St West End, Freo. The Fremantle BID and the West End Traders facilitated the up-lighting, and the once-burnt-down labour-of-love National Hotel is back on its feet (five years later) thanks to that landlord - with High Street tables (a first). Business sold by Graeme Clarke of Burgess Rawson.

Below: This is Craig Olde of CBRE retail leasing. You may think it's unusual that he's having a gentle cycle in Fremantle when in 2 hours he has to be on St Georges Tce murdering small animals, but Craig and his beloved wife live here and this is their mode of transport. He tells me the improved bicycle infrastructure has meant their bicycle journeys have massively increased. I think we should get him on to A Beautiful City TV to get the low-down retail leasing in the city. Oh - and online shopping? He says he browses online to then buy in a local store. Opposite of many. So good.

West Perth

'A Building' in West Perth - um... pretty new. It's got some stuff going on there - residential on the upper levels? That's good. That means you can jump out. That's not good, but isn't it lovely that the state government now allows us to build them that way? Normally you have to fuse all the windows shut.

Cottesloe

Golly, Napoleon Street's pretty. Cottesloe.

Mosman Park

I like this: it's 11pm and it's closed, but they've left their tables and chairs outside. Good. Glyde St Mosman Park

In The Wilds Of Perth This Week


East Victoria Park

Subiaco

Fremantle

Leederville

Northbridge

Mount Lawley

Genius Man Creates Retail Resiliency In Mount Lawley

Above: Astor Gelato, corner of Walcott Street and Beaufort Streets, Mount Lawley, Australia.

God, I love Bruno Zimmerman.

Was Zimmerman Photo Lab and like a lot of careful business owners in our community bought the commercial property he was familiar with when the opportunity arose.

Fast forward 18 years and in an A Beautiful City interview this week told us that he has a queue of tenants awaiting a vacancy in his building - The Astor Arcade. "Why?" he tells us, "Because I keep rents low. There's no point in biting the hand that feeds you."

What he means is that he takes care of his tenants with low rents. Vacancies are low or non-existent.

People like this matter in our society.  He accounts for a handful of shops in our community which are nearly never vacant and because of his low-rent attitude are more affordable to independent businesses and innovative retail uses. The retail community get to know him as a landlord and know he's a kind guy with low rents, and so don't do midnight flits, complain about their private lives instead of paying rent, set fire to the curtains and leave a dead quokka under the floorboards before vacating.

Bruno and his wife are adamant about their role in their retailers' businesses: that of a landlord who should not drown them. They were clear that some other precincts in Perth ("Subiaco", they say) had the so-called Greedy Landlord Problem: high rents, high vacancies, and ultimately for the conscientious landlord a diminished retail community and street vitality, and a poor performing retail investment.

But is this really fair? Is it really the landlord's fault they press for higher rents?  They spend $3 million on a property with 2 tenants in it.  The income is 'only' $110,000 per annum. That's not enough - the bank will want all of that or more - and if your landlord didn't buy the property then there would be no property to rent.  Someone has to bloody own it.

Or do they?

Yes, I'm afraid.  And so the principal of retail leasing is that every square metre of God's green earth that was required to furnish your mainstreet with 'a shop' appears as an expense on a ledger and Mr Tenant picks that up as rent-negotiated.  It's just that some landlords have higher expenses than others.

It's a fact that shopping centres forced to do a 'mainstreet concept' by their local governments never work because without a diversity of landlords in their 'mainstreet' there isn't a variance of rents or landlords, or building types in different states of repair.  And back to Bruno Zimmerman.

We know (he tells us) that he 'keeps rents low' and this creates a 'Happy Tenant Syndrome'.  If your mainstreet has happy tenants and a queue of more willing to get in you have chance - an actual chance - to curate vibrancy.  If you don't, and vacancies are high, your planning approval process will be criticised by 'developers' who think they're doing the world a favour because they have packaged up a bit of God's green earth and are marketing it for sale.

The upshot is we want a mainstreet with low or no vacancies and a queue of tenants lining up to get in.  We want the sitting tenants to be happy, and not to do midnight flits leaving horses heads in the wall cavities.  But we're not all lucky; some - if not, most - landlords can't afford to 'keep rents low'.  Wonderful websites like 'Who Crashed The Economy' and 'Don't Buy Now' urge us to depress the property market at all costs; and I agree with them.  You don't want to pay $1 million dollars for a townhouse near a mainstreet and you don't want that mainstreet to be filled with only empty shops, 8 national boutiques and newsagent that's just hanging on.

So whilst Bruno Zimmerman is a lovely man and should probably win an award for Community Landlord Of The Year we must acknowledge that our problems are not directly the fault of the other landlords who cannot afford to 'take anyone on at any price'. Properties are expensive; they don't exist if they're not owned; and it's landlords who have the balls to risk everything, including wearing a white shirt every day for the rest of their lives, to put their name on a title deed and be the carriageway for our mainstreets to have shops and retailers and community vitality.

Of course, no-one gives a shit when Johnny Landlord is struggling; we all go strangely silent.  Our local newspapers never printed an article of an old lady sitting at her kitchen table with a pile of unpaid invoices of her tenant.  No.  The tenant is always the good guy and the landlord is always the baddie.  But that's not true.  Landlords struggle to put 'shops on the street' for us to rent, use, occupy and visit as customers.  And because our communities are now run by the silent hand of insurance companies and the lawyers that encourage them they will get thrown in jail if any tenant or their customer trips within the premises and invokes a claim.

I think I'd like to see a leading story in my local paper, shaming the retailers:

"So-and-so Fashions Pisses Off Owing $20,000 Rent"

"Community Vigil By Candlelight at 8pm For Our Struggling Landlords" and

"Landlord Festival: Celebrating the Gods Who Put The Shops On The Street For Us".

A Beautiful City is proud to advise local governments to retain or accumulate their own buildings in their mainstreet so they can set rents where they like and facilitate the retail community they need. Vibrancy is always going to be linked to the peculiarities of the retail-offer your community sits within, and the great news is we needn't know what the retail mix will look like (today). We need only make a fertile landscape for the economic cycle (and retail ecology) to move efficiently, and so to organically attract innovative retail.

And if you're lucky you'll end up with a 'Bruno Zimmerman': A landlord who 'sets rents low', maintains a high occupancy rate and has active participation in the welfare of his tenants.

And now he's opened a small gelato store within his own building and is mucking his hand in; a retailer turned landlord turned retailer. And that's all part of the retail cycle. A good mainstreet retains those 'moves' locally and doesn't have distant landlords toying with your shops and bringing the easy flow of investment to a standstill.  (By overpaying in the first instance.)

Thank you, Bruno Zimmerman, and his beloved wife.

Above:  The sweet, painted roller shutter of Bruno Zimmerman's Astor Gelato, corner of Walcott and Beaufort Streets, Mount Lawley, Australia.

Above: The beautiful Beaufort Street, Mount Lawley - and the Astor 'Theatre' Building on the left.