Once a major retail destination in central Geelong, Market Square shopping centre has lost a string of prominent tenants, adding to concerns about the decline of the regional Victorian city’s CBD.
Cotton On, Cotton On Kids and Adairs have previously moved across the road to rival Westfield Geelong, while Typo has also closed its Market Square store.
Footwear retailer Faull’s Shoes is in the process of closing its store after 17 years, with director Ben Faull previously indicating the location had become commercially unsustainable.
Related Article Block Placeholder Article ID: 340412
The departures come as Geelong’s CBD businesses grapple with reduced office-worker foot traffic, online competition and stalled property development.
Geelong Mayor Stretch Kontelj is now backing compulsory acquisition of the privately owned centre, saying its owners have refused to sell or redevelop the site.
Smarter business news. Straight to your inbox.
For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free.
By continuing, you agree to our Terms & Conditions and Privacy Policy.
“Doing nothing is not an option,” Kontelj told SmartCompany.
“We’ve looked into this as a council, and the legal levers definitely sit there, and they could be pulled either by the state government or by the council.”
Kontelj said a legal dispute involving the centre’s owners was contributing to the redevelopment deadlock.
“They’re refusing to develop and they’ve said they’re not interested in selling,” he said.
“The only way to move through that deadlock is a compulsory acquisition.”
State intervention to pave way for private development
Kontelj said he had spoken with prospective developers interested in acquiring and redeveloping the site for shops, hospitality businesses and housing.
“There’s a number of them that I’ve already had discussions with, so there’s no shortage of interest,” he said.
He suggested the Victorian government could acquire the site and partner with a private developer.
“The best outcome would be for the state government to enter into a joint venture with a major developer that’s experienced in developing these types of sites,” he said.
Kontelj said redeveloping Market Square could help attract more residents to central Geelong, arguing the CBD needs a population of 16,000 to 20,000 to support local businesses.
“It would be a huge unlock for the CBD’s revitalisation,” he said.
He estimated around 40% of workers at major CBD organisations were working remotely at any given time, affecting weekday trade.
“The place is a shadow of its former self,” he said.
Related Article Block Placeholder Article ID: 335901
Liberals pledge to fund Market Square redevelopment business case
The Victorian Liberals have pledged to fund a business case examining options for redeveloping Geelong’s struggling Market Square shopping centre if elected at November’s state election.
Liberal candidate for Geelong Andy Pobjoy, who has operated the CBD’s Piano Bar for 11 years, said the shopping centre’s deterioration is affecting surrounding businesses.
“It’s an absolute blight. We’ve got businesses and tenants exiting that shopping centre almost weekly, and we need to do something,” Pobjoy told SmartCompany.
“It’s getting to the point where it’s an embarrassment.”
Pobjoy said the business case could examine attracting a major anchor tenant or acquiring part or all of the site for mixed-use development.
“There’s a million and one different things we could be doing with that space, but what we do know is the current status quo is just not working,” he said.
No formal compulsory acquisition process has been announced.
Push to revive Geelong CBD
Meanwhile, Kontelj said 14 CBD development permits remain unused because high construction costs are making projects financially unviable.
“It costs as much to build in Geelong, if not more, than it does in Melbourne, yet the price that you get [for property] in Geelong is significantly lower,” he said.
He is advocating for a special economic zone offering temporary council rates, and state land tax and federal GST concessions to encourage investment.
Kontelj also backed relocating the Moorabool Street bus interchange, which he said many developers and Market Square’s owners had identified as an obstacle to redevelopment.
The Victorian Liberals have pledged $800,000 towards relocating the interchange.
“Geelong, as one of the fastest growing regions in Australia, needs a thriving heart, a thriving CBD,” Kontelj said.