Australian CBD Retail Vacancy H1 2025

CBD retail vacancy in Australia, as surveyed by CBRE Research is 11.1% (weighted) as of H1 2025, a 40 bp decrease from the previous figure of 11.5% recorded in H2 2024. Vacancy has tightened nationally to the lowest level since the count began in H1 2021. The steady return to office-based work, alongside growing tourism and international student numbers, has boosted foot traffic in CBDs and fuelled stronger demand for retail floorspace.

 

Sydney

Of the five capital cities surveyed, Sydney recorded the lowest vacancy (5.0%) which was in part due to construction at the MetCentre removing a number of previous vacancies from the count. If a similar adjustment had been applied in the previous period, H2 24 vacancy would have been 6.1%, compared to the current 5.0% which still shows a significant movement.

 

Melbourne

Melbourne's CBD retail vacancy expanded by 89 bp over the six months to June 2025 (H1 2025), reaching an average of 6.9%, which is in line with the vacancy rate recorded in H1 2024 (6.9%). Construction activity around Bourke Street and the Metro Tunnel, may have temporarily affected leasing activity and foot traffic. With completion anticipated in the second half of 2025, a subsequent reduction in vacancy rates is expected.

 

Brisbane

Brisbane’s CBD retail vacancy strengthened in H1 2025, decreasing by 22 bp to 18.3%. Vacancy has continued to represent a downward trajectory, declining by 125 bp since its peak of 19.5% in H1 2023.

 

Perth

Perth’s CBD retail vacancy experienced a slight improvement, decreasing by 42 bp during H1 2025 to 21.7%. This is the lowest CBD retail vacancy rate that has been recorded since H1 2021, when the CBD retail vacancy series began. The Perth CBD retail vacancy rate has now decreased by 480 bp after peaking at 26.5% during H1 2022.

 

Adelaide

Retail vacancy in the Adelaide CBD rose to 9.3% in H1 2025, marking a reversal of the downward trend observed since H1 2022. While overall vacancy across the CBD has generally declined, this increase was driven primarily by a rise in vacancy at one of the CBD centres, which offset the reductions recorded in surveyed strip and arcade locations.