Australian CBD retail vacancy rates increased in the first half of this year but will potentially contract in the second half as the market might have bottomed out, a report by the CBRE shows. The national vacancy rate edged up to 15 per cent in H1 2023 from 13.9 per cent in H2 last year. CBD vacancy in Sydney and Brisbane rose by 2.49 per cent and 1 per cent, respectively. Melbourne’s vacancy was up by 0.8 per cent but remains the lowest in the country at 10.7 per cent. The rate declined by 0
ined by 0.77 per cent in Adelaide and 0.74 per cent in Perth.
“Overall vacancy has softened nationally, coming off seasonal highs in H2 and lower spending, however rising office occupancy rates and the return of international tourists and students has increased visitation,” said CBRE research analyst Darcy Badgery.
A recent survey also highlighted that many retailers seek to increase the quality of their store locations, Badgery added.
“While the overall national vacancy rate has increased, based on current enquiry levels we expect to see vacancies contract across all markets over the next six months,” said Leif Olson, CBRE’s Australian head of retail leasing.
Sydney is expected to record a quick recovery in retail CBD vacancy rates “with deals pending several large arcade vacancies and strong enquiry from food & beverage and luxury fashion retailers,” Olson elaborated.
Super prime CBD retail rents are on the rise again.
