Rising foot traffic signals resurgence of CBD retail market 

Australia’s CBD retail market has seen a resurgence with sharp increases in foot traffic and turnover, Colliers’ latest CBD Retail Report shows.

According to the data, national CBD foot traffic has rebounded to 94 per cent of pre-pandemic levels. 

Brisbane, Perth and Adelaide have already exceeded their 2019 benchmarks, while Sydney and Melbourne are steadily recovering, supported by public transport infrastructure upgrades and the revitalisation of key precincts.

The report also shows that retail turnover is now 21 per cent above pre-pandemic levels, fuelled by strong population growth, rising tourism, and a renewed focus on experience-led shopping. This figure is forecast to grow by nine per cent over the next five years.

“We are witnessing genuine positive momentum in Australian CBD retail,” said Michael Tuck, Colliers head of retail leasing & advisory, Australia. 

“Constrained supply and steady rental growth are underpinning landlord confidence, while rising demand and tightening vacancies are creating healthy competition for space. Increasing foot traffic, fuelled by population growth, tourism and productivity gains, is further strengthening the market,” he added.

Colliers’ report projects national retail development to decline by approximately 72 per cent over the next five years, compared to the five years leading up to the pandemic. This would intensify competition for high-profile locations and result in longer wait times for retailers.

The report also notes that online retail adoption in Australia has stabilised at 13 per cent, well below global counterparts such as the US (33.7 per cent), China (31.2 per cent), and the UK (23.2 per cent). This underscores the enduring appeal of physical retail and the experiential nature of Australian consumer behaviour.

“Rather than replacing bricks-and-mortar stores, online channels are increasingly complementing the broader retail ecosystem, with physical stores evolving into immersive brand experiences,” said Sam Ryan, Colliers senior research analyst. 

“The outlook for CBDs is particularly promising, as they continue to evolve into vibrant, mixed-use precincts. Major infrastructure projects, including the Melbourne Metro Tunnel and Sydney’s new Metro Stations, are improving accessibility and activating new retail zones,” Ryan added.