Retail emerges as Australia’s most coveted commercial property

Retail has become the top choice for commercial property investors in 2026, driven by increasing consumption, tight vacancy rates and limited land supply.

According to CBRE, retail transactions jumped by almost 20 per cent in 2025 to $11.3 billion, with regional shopping centres particularly attracting investor interest. Experts predict another strong year ahead, especially in regional areas.

Simon Rooney, CBRE’s head of retail capital markets for the Pacific region, said there were several factors driving this trend. 

“Regional shopping centres have emerged as a highly sought-after investment class,” Mr Rooney said.

“Values have recalibrated post-COVID, and the sector offers strong performance fundamentals, underpinned by minimal new supply, increasing population off the back of high immigration, and strict planning regimes, which protect incumbent regional shopping centre assets.”

Population growth is expected to be a major driver of performance in regional shopping centres. Australia’s population is projected to increase by 4.4 million by 2035, while average wages are forecast to rise from $105,000 to $144,000 per annum during the same period.

Based on these projections, CBRE anticipates a retail spending surge, with consumer spending expected to grow from $450 billion in 2025 to $530 billion by 2030. 

This consumer confidence is expected to drive rental growth for Australian shopping centres in the mid-single digits through 2026, with Perth likely to outperform with high single-digit growth.

Regional shopping centres that focus on experience-based shopping and dining are showing stronger performance than others in the market. Property owners who invest in redevelopment or refurbishment are also seeing significant returns on their investments.

Limited supply is another factor attracting investors to retail properties. The scarcity of suitable land, high construction costs, and complex planning regulations have restricted new developments in the sector.

Regional shopping centres are expected to perform well regardless of interest rate movements in the coming year. 

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*This information is general in nature and does not take into consideration your individual circumstances. Please contact us for further information.