Foodies have emerged as the fastest-growing tenants in all capital cities as they vie for space with retailers but are willing to pay a premium for the right location.
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The height of the demand is such that one of the well-known groups, Urban Purveyor, owned by Quadrant Private Equity, is looking to expand through a public listing. Its stable includes the Fratelli Fresh chain.
The group has said it is targeting to raise about $1 billion in a public listing to help change the eating habits of the country.
Matt Hudson, associate director retail leasing for Colliers International, said the strategic purchase of the Fratelli Fresh Group provides new owners Urban Purveyor Group with a perfect springboard into the Italian cuisine sector and offers an immediate expansion platform across the broader eastern seaboard.
UPG is targeting to open 20 restaurants across their portfolio in 24 months, which will include popular brands such as Sake, across the Eastern Seaboard and is looking for raw sites and existing businesses with strong cash flow and strong brand presence.
The demand for the food retailers is growing in unison with the expansion of city workers and residents. And the tenants are willing to pay higher rents for the locations to beat clothing and other traditional city tenants.
The new Sydney openings include Dr Sam Prince's new Indu in the former Dymocks basement at 350 George, Nathan Sasi with its just opened Mercado next door to Ash St Cellar and Peter Thompson, who is set to open in the basement of 14 Martin Place fronting Angel Place.
In Melbourne, UPG recently purchased two leasehold sites:the old Stoke House from Frank van Handle and and a space directly next door to Chin Chin in the heart of the city.
Riverside Quay in the Southbank precinct will add 10 to 12 new operators, activating street food vendors and delivering another laneway culture along the Yarra's banks.
The swath of new restaurants also reflect the trend of younger people wanting to eat out and enjoy a more relaxed lifestyle in the city.
According to Mr Hudson, Sydneysiders are seeking greater dining options, which is resulting in operators delivering broader palate options which had previously been available only in other international cities like New York and London.
"The strength of the food and beverage sector has assisted with underpinning core office assets with like-minded amenities to match the premium and A grade accommodation above," Mr Hudson said. "It looks like Sydney is fast on track to overtake Melbourne as the dining capital of Australia. This will be underpinned with the anticipated success of many restaurants around the inner city."
Other new tenants include Maurice Terzini who is set to open his take on the Bondi Italian institution, Da Orazio, at 20 Martin Place fronting Penfold Place. The electric car group, Tesla, is also opening at 20 Martin Place.
Swillhouse Group has just opened Huberts at 6-10 O'Connell Street in the old Celestial Chinese restaurant and it is rumoured that the China Doll group has secured the site at the entry to the recital hall in Ash Street.
The conversion of the ex-hair salon at 6 Bridge Street is expecting an all-day cuisine similar to that of Melbourne's Cumulis Inc. and is scheduled for an opening mid-year.
Mike McEnearney is set for the long-awaited opening of his new CBD site at 1 Bent Street next month.
Michelin-starred chef Jason Atherton is taking up the final vacancy at Kensington Street's The Old Clare Hotel with his first Australian venue
Chef Clayton Wells' first solo restaurant, Automata, is open in The Old Clare Hotel.
