In this exclusive Q&A, we speak with Michael Di Carlo – a respected CBD retail leasing expert whose career spans landmark Bourke Street Mall deals, major food and beverage introductions and the delivery of precincts that redefine Melbourne’s urban experience.
How did you get started in retail leasing?
I started in commercial real estate more than 25 years ago with K & P Smyth Collingwood in Melbourne, gaining exposure to residential and commercial management. I then moved to Dixon Kestles in South Melbourne focusing on commercial leasing before being approached by the retail team at CBRE, where I started in 2005 focusing on CBD retail in Melbourne. I was promoted to head of the Victorian Savills retail team a few years later.
In 2017, I moved to Cushman & Wakefield, where I was appointed as Director of Retail Leasing, Victoria, and in this role, I led CBD retail leasing campaigns, including working with global brands including Mercato Centrale, OCHE and Foot Locker.
This year I have moved to Knight Frank, joining as Director of Retail Leasing, Melbourne to expand the retail team, building on its existing strong foundations.
During the past 25 years my career has progressed from deal-making and tenant introductions to strategic advisory and leadership, while maintaining strong, long-term relationships with both landlords and major national/international retailers.
Can you tell us about your career highlights, proudest moments, memorable deals?
The most rewarding moments come when you’re working with a team that clicks – that is, everyone aligned on the same page to achieve success.
My favourite project I’ve worked on is Wesley Place, in Melbourne’s Lonsdale Street. It commenced during COVID. With the patience and vision of the client, we curated a precinct that now includes the Caretaker’s Cottage bar, Sakura Kaiten Sushi and Operator Diner. The result was an outstanding, activated environment that brought the project to life despite market challenges.
My most memorable deals were landmark leases in the Bourke Street Mall for Foot Locker, OPSM and ANZ, as well as large food and beverage introductions over the years, including successfully introducing Mercato Centrale and OCHE into Melbourne’s CBD.
Tell us about your role, your recent projects/deals?
In my role as Director of Retail Leasing, Melbourne at Knight Frank, my focus is on CBD and inner-city retail leasing across Collins Street, Bourke Street Mall, Swanston Street, Little Collins Street and beyond. My role includes advising landlords and tenants with a strategic approach, covering property leasing, project leasing, marketing strategies and ensuring tenant mix optimisation.
Since joining, I’ve already been re-approached by past clients and entrusted with major retail opportunities. Current projects include:
- Bourke Street Mall – Working with Foot Locker on a flagship re-lease
- Swanston Street – Leasing of the Metro Trains space, a high-exposure CBD site
- 568 Collins Street – Active retail leasing campaign
- Temple Court, 422 Collins Street – 1,200sqm opportunity across multiple tenancies
- 276 Flinders Street – Retail tenancies opposite Flinders Street Station, catering to high pedestrian volumes.
What do you love about retail leasing/or What do you love about retail?
I love seeing spaces transformed, especially an empty tenancy reimagined into a vibrant destination for the community.
The excitement of new brands – the energy and buzz when a new retailer or hospitality concept enters the market – is also wonderful to be part of, as well as seeing tenants succeed, watching retailers grow, thrive and become part of Melbourne’s CBD fabric.
What do you think are the key elements of a successful retail business?
- Stay true to what you do best – focus on your core strengths rather than trying to be everything to everyone.
- Keep it simple – clarity of offer and consistency in delivery resonate with customers.
- Customer experience – create an environment that encourages people to return, whether through service, atmosphere, or unique brand identity.
- Consistency – long-term success comes from delivering the same quality and value every time.
When approaching a new leasing deal, what’s your philosophy on balancing commercial terms with finding “right fit” for the Centre?
Step one is to understand the client’s goal – is the priority a financial return, or creating amenity and activation for the precinct?
It’s also important to analyse the gaps – identify what’s missing in the mix and target operators that will complement and enhance the area.
The ‘right fit’ should come first. Success comes from securing tenants who align with the vision for the space, ensuring longevity and vibrancy.
Also consider commercial terms – these flow naturally from the client’s objectives and what the market can sustain for the intended use.
What’s one misconception retailers often have about negotiating a lease?
The one misconception is that rent is the only lever; many retailers believe negotiations are solely about achieving the lowest rent.
In reality, the deal is multi-layered, including incentives, security, viability of the offering, fitout contributions, term length and flexibility of what both parties are prepared to accept. The best outcomes come when retailers see the lease as a partnership, not just a transaction.
What major consumer or retail trends are currently shaping your retail strategies?
- Evolving CBD use – the way people use the CBD has shifted post-COVID, with different patterns of work, shopping, and leisure.
- Night-time economy growth – increased demand for restaurants, bars, and food concepts that can trade strongly across both lunch and dinner.
- Return to the civic core – retail tenants are re-committing to central city locations.
- Rise of entertainment and experience – there is strong momentum from large entertainment and experiential operators entering the CBD.
What’s the biggest challenge facing retail leasing today, and where do you see the greatest opportunity?
The biggest challenges are cost of living pressures, with consumers more cautious and reducing their discretionary spending, as well as changing CBD patterns – shifts in office attendance and city usage continue to impact traditional retail trade.
The greatest opportunity is in repositioning assets, such as transforming existing sites into vibrant, future-ready precincts, and creating new destinations by curating retail and hospitality mixes that respond to the needs of the growing CBD residential population.
What makes a successful retail/landlord partnership? What would you like to see improved?
The key factors for a successful retail/landlord partnership are a shared vision, open communication, a fair deal and having a long-term focus.
Improvements could be made to foster greater collaboration, with landlords and tenants working together more.
Which in your opinion is the best example of a good shopping centre, retail precinct or place?
The Melbourne CBD as a whole, because it is a dynamic, constantly evolving retail environment. It has organic change, with streets naturally refreshing as new retailers and concepts replace older ones.
It has so much to offer. Swanston Street is Melbourne’s hub for fast food and new Asian dining concepts, attracting strong daily trade. The Bourke Street Mall is home to flagship stores and global brands, anchoring the CBD retail core. North Elizabeth Street (at night) is buzzing with both small and large food retailers, activated by the growing residential population and visitors to the Victorian market.
There is also future opportunity – I’m looking forward to the laneways between Bourke Street and Flinders Street being reactivated, as major CBD developments near completion.
Your favourite retailer and why?
Rebel Sport, particularly their store in Melbourne Central.
I have a personal connection with the retailer, as every school holidays my two boys insist on visiting the basketball section. It’s a great example of how a retailer can create a destination within a store. We always end up buying something before leaving, showing the strength of experience-led retail.
- This article was first published in SCN magazine – Mini Guns 2025 edition
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