“The recession of the 1990s was followed by innovation across the CBD, and we’re now seeing a similar pattern of new hospitality venues opening, laneways being activated and inner-city living taking off again,” Lockwood said.

Lower rents are also driving the resurgence, as they did in the 1990s, with some key precincts reporting a halving of their pre-pandemic levels.

“In Swanston Street, pre-COVID, there was a pocket between Collins and Bourke that was fetching around $5000 per square metre. That is now probably around $2500 per square metre,” he said.

“That pocket between Collins and Bourke at one point was nearly 50 per cent vacant. Rents came down and now there’s only one or two vacant stores there. It’s a huge change.”

Vacancy levels on Swanston Street fell to 3.4 per cent from 18.7 per cent as new businesses get ready for the opening of the new metro railway stations.

The Bourke Street Mall, half of which is under redevelopment for a new hotel, a Mecca flagship store and a new David Jones cosmetic department clocked in at 4 per cent – down from 13.8 per cent.

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There have also been reports of lower rents in the Mall, with jewellery chain Michael Hill securing 280-282 Bourke Street for around $900,000 a year – 10 per cent less than the shop’s original asking price.

The Paris-end of Collins Street, dominated by luxury global retail brands, showed the lowest vacancy in the CBD of just 2.6 per cent.

While some beloved restaurants, like Gingerboy, are shutting their doors, others are opening.

At 36 Exhibition Street, a joint venture between the Red Rock Leisure Group – the talent behind Cookie and The Toff, which transformed Curtin House in the mid-2000s – and chef Michael Lambie (ex-Lucy Liu and The Smith) have signed a 10-year deal for a new Asian fusion restaurant and bar, paying $400,000 a year.

Two new deals have also been signed at GPT’s revamped Queen & Collins building. Remo Nicolini’s A25 Pizzeria will open its new Centro outlet in the historic corner property, paying $115,000 a year for the 118 square-metre space.

Also moving in will be Vivienne and Ron, the team behind Ichigo who are planning a new French-Japanese fusion restaurant. They have an eight-year lease, paying $120,000 a year for the 142 square-metre space.

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