The strip has languished in the past two decades as takeaway food outlets and cheap souvenir shops dominated the streetscape.

But three recent record-breaking rental deals suggest a shift may be underway, with the heart of the revamp in the half-block between Little Collins and Bourke streets. Unable to afford the $1 million-plus rents on the Bourke Street mall, these tenants are shifting just around the corner.

National sneaker retailer Hype DC has leased a 100-square-metre shop at 139 Swanston Street in a deal believed to be worth about $400,000 a year.

And rival runners chain Platypus has committed to 150 square metres at 149 Swanston Street at a staggering $570,000 a year.

Nearby, fashion retailer Gorman, recently ejected from its spot at the back of the GPO shopping centre, is paying about $450,000 a year for a 100-square-metre space. Gorman is understood to be doing better business on the street than at GPO or at its new Melbourne Central outlet.

CBRE leasing agent Zelman Ainsworth, who negotiated the Hype DC deal  with the help of colleague Cam Taranto, said the street was changing.

“Platypus, Hype DC and Gorman are national brands. They’re quality tenants with expensive fit-outs and they will help attract other quality brands. It’s all about the neighbours,’’ Mr Ainsworth said.

Swanston Street is outperforming rival Elizabeth Street in both rents and turnover, according to CBRE research. Spend-less Shoes recently leased the 100-square-metre shop at 134 Elizabeth Street for $240,000 a year and 183 Elizabeth has been leased at $200,000 a year.

“We are predicting further rental growth in the CBD retail market, due to the very tight vacancy rate and the strong push from major national and international retailers competing for prime retail spots,’’ he said.