Vacancies in retail premises across Australia’s central business districts (CBDs) have fallen to their lowest level on record.
CBRE’s half-year report on retail vacancies shows that the national vacancy rate fell to 10.4 per cent in the final six months of 2025.
Sydney CBD led the way with the lowest rate, at 4.3 per cent. It was followed by Melbourne at 6.5 per cent.
But not all cities saw a decrease in vacancies; Adelaide increased by 2.4 percentage points to an 11.7 per cent vacancy rate. Perth continues to lead Australia with the highest vacancy rate, at 18.6 per cent.
“Overall, national CBD vacancy has tightened to the lowest level since we began this research series in H1 (first-half) 2021,” CBRE’s head of retail research, Kate Bailey, said.
“This 10.4 per cent figure, down from 11.1 per cent in H1 2025, is the result of a number of factors that we continue to see in the market, including return to office momentum, coupled with increased tourism, events, infrastructure and international student inflows, which has led to increased foot traffic in CBDs, supporting occupier appetite for floorspace.”
CBRE said the shrinking vacancy rate is buoyed by workers returning to offices, increased tourism, and the growing appeal of global brands to Australia’s major city centres.
“As vacancies decrease, rents are rising. Additionally, high construction costs are making it prohibitive to refurbish or build new premises unless the space is super prime and can command higher rents to balance the capital investment,” CBRE’s NSW head of retail leasing, David Swann, said.
- This story was originally published on Inside Retail Australia.
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