Australian CBD Retail Vacancy H1 2026

Australia's CBD retail markets continued to demonstrate resilience in H1 2026, with the national weighted vacancy rate edging up just 40 bp to 10.8%, from 10.4% in H2 2025. While vacancy increased slightly, it remains low by historical standards and well below the peaks recorded since CBRE Research commenced its CBD retail vacancy survey in H1 2021. The result underscores the strength of occupier demand across Australia's CBDs, supported by ongoing return-to-office trends, a resurgence in tourism, major events and infrastructure investment, which continue to reinvigorate city-centre foot traffic and retail spending.

The modest rise in national vacancy was largely a story of new supply rather than weakening demand. Melbourne accounted for most of the increase following the completion of two new retail centres, which added a notable volume of vacant floorspace to the market. As a result, headline vacancy rose to 8.1%. However, underlying leasing fundamentals remained positive, suggesting the increase reflects a temporary absorption challenge rather than a deterioration in occupier sentiment.

Sydney once again cemented its position as Australia's tightest CBD retail market, recording a vacancy rate of just 5.3%. Melbourne followed at 8.1%, retaining the second-lowest vacancy rate nationally despite the impact of newly completed stock. At the other end of the spectrum, Perth's vacancy rate eased marginally by 10 bp to 18.5%. While still among the highest rates nationally, it remains near the lowest levels seen since the survey's inception, highlighting the market's gradual recovery.

Brisbane and Adelaide delivered the greatest improvements during the first half. Brisbane's vacancy rate tightened by 80 bp to 16.7%, reflecting improving leasing momentum and increased occupier confidence. Adelaide emerged as the standout performer, with vacancy declining by 130 bp to 10.4%, the largest reduction among the five CBD markets surveyed.

CBRE's survey covered 5,669 retail outlets across Australia's five major capital city CBDs. Given Melbourne's significant representation within the national dataset, changes in its vacancy rate have an outsized influence on the weighted national result, reinforcing its role as a key driver of broader CBD retail market trends across the country.