Retail: A Good Investment Option

The retail sector has emerged as the most sought-after commercial property for investment, according to analysis by CBRE.

It says increasing consumption, tight vacancy rates and limited land supply are pushing retail to the top of commercial investors’ wish lists for 2026.

In 2025 the value of retail property transactions increased by almost 20% to $11.3 billion.

CBRE head of retail capital markets, Simon Rooney, says regional markets in particular are growing in demand.

“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,” he says.

Rooney describes demand for retail in properties in 2025 as “almost insatiable”.

He says continuing population growth will be the major driver of the strong performance in regional shopping centres.

It is forecasting rental growth for Australian shopping centres to be in the mid-single digits through 2026, with Perth expected to outperform.