Australia Weather News

Capricornia Chamber of Commerce president Peter Fraser would like to see landlords offer short-term leases in the CBD to encourage new businesses. - ABC

More than 50 shops are sitting empty in Rockhampton's CBD as the 'beef capital' deals with the fallout from Cyclone Marcia, the mining downturn and the Queensland drought.

Prior to Christmas the Rockhampton Regional Council commissioned a local artist to paint murals in the empty windows of East Street, as a short-term way to beautify the area.

But the murals are now gone and the question remains of how to attract businesses to the CBD.

Capricornia Chamber of Commerce president Peter Fraser said the vacant shops were difficult to ignore.

"It's certainly noticeable and it's noticeable to anyone who comes into Rocky's CBD," he said.

"It's noticeable from an external point of view and very disappointing from an internal perspective as well when you look at all the unused, high-value real estate."

Mr Fraser said the vacant shops could potentially discourage business people from investing in Rockhampton.

"I think any external person who is looking to come to Rocky ... if you see a lot of vacancies you've got to question whether there's economic stability here," he said.

"Certainly if you were wanting to set up a new business that would definitely be an issue that would figure very, very highly on whether you would want to continue."

Mr Fraser said Cyclone Marcia had an impact on local businesses, but was not the only reason behind the vacant shops.

"It's certainly a by-product of the shocking year in business that Rocky has seen over 2015 and it wasn't just a by-product of the cyclone either," he said.

"It's been something that we've been feeling the three years that I've been here."

Mr Fraser said he would like to see landlords reduce their asking rental prices and offer short-term leases to start-up businesses.

"It doesn't have to be property owners giving up the town. They've got to have a commercial reality of getting some rent out of it and not being out of pocket by it," he said.

"But it's certainly got to be some middle ground, between them getting nothing for three years and them being able to offer some sort of short-term leases where they can.

"It makes our town look more vibrant."

Business operator says rent is a 'killer' in the CBD

Picture framer Peter Genders has been in business on Rockhampton's East Street for 25 years and said it was often difficult for small businesses to cover rents along the shopping strip.

"One of the biggest hindrances would be the rents: rents are a killer here," he said.

"Considering we're a lot of 'ma and pa stores', locally family owned [businesses], it really does take a big slog out of the profits to meet and cover the rents.

"It's a big hurdle but we're struggling through."

He said there were several other factors currently affecting businesses, including the drought.

"We've noticed that when it rains, cattle people have a little bit more money," he said.

"It brings life back into the mall, businesses seem to get that little bit of an extra boost."

"I don't know whether it's the mining downturn, but business is doing it tough.

"[Also] Cyclone Marcia really did put a big dint in not only just the wallets, but the overall feeling of the people ... it really did take a big toll on people mentally."

New business opens despite downturn

Katrina Graham and her daughter Vanessa Acree opened a coffee shop on East Street about six months ago.

Ms Graham, who has lived in Rockhampton for 16 years, said she had been surprised by how difficult it was to turn a profit in the CBD.

"We were kind of a little bit blindsided by it and didn't really think about it, we've quickly learned though," she said.

"It is kind of tough to make ends meet with any new business.

"Our eyes are definitely wide open now, so we've made appropriate changes and continue to make changes."

She said her landlord gave her a special deal when her business first opened, which was a big help.

"Our landlords were really good when we first opened and they continue to be good," she said.

"Rent is predominantly high, but our landlords gave us two months free rent when we started, which was really, really good."

Ms Graham said locals really needed to support small businesses in the CBD in order for them to flourish.

Mayor says situation not unique to Rockhampton

Rockhampton Mayor Margaret Strelow said the high number of vacant shops in the CBD was not unique to Rockhampton.

"I suspect there has been a shift right across Australia to shopping centres, it's air-conditioned," she said.

"The challenges that CBDs right across Australia have are no different to those we're experiencing."

Mayor Strelow said the mining downturn, the GFC and Cyclone Marcia were also part of the problem.

"Many of our businesses, particularly where it's the most discretionary spend, they're the ones that have been hurt by Marcia, where people just don't have that spare money anymore," she said.

She said she would like to see landlords offering rental discounts, but said that issue was out of council's jurisdiction.

"This is always a complex one for council because we don't own the land obviously," she said.

"But we'd certainly like to see, at least at the entry level, for the first six months or 12 months at reduced prices, but we can't enforce it.

"All we can do is support and encourage."

ABC