A total of 5646 CBD retail outlets were surveyed for the report. Melbourne had the highest number of retail outlets surveyed at 1720, followed by Sydney (1553), Brisbane (1335), Perth (673) and Adelaide (365).

Of the large deals, in Sydney the core CBD continued to see strong inflow of local and global brands securing flagship tenancies in strip locations including MJ Bale at 1 Martin Place and Rodd & Gunn at 14 Martin Place.

‘With the new metro opening, we expect the improved connectivity and accessibility will drive increased pedestrian traffic to new areas of the CBD.’

Leif Olson, CBRE Australian head of retail leasing

Melbourne’s Collins Street has also solidified its reputation as a prestigious shopping destination, housing all major luxury brands in one strip.

Vicinity Centres, which has a stake in Sydney’s Queen Victoria Building, the Strand Arcade and The Galeries, said at the full-year results that the CBD had all performed well.

“Of note, at 99.6 per cent, CBD centre occupancy now exceeds pre-COVID levels, reflecting not only retailer confidence in the future of CBDs, but also outstanding leasing execution by our team, with the introduction of new flagship stores and new-to-market concepts,” Vicinity chief executive Peter Huddle said.

Australian head of retail leasing at CBRE Leif Olson added that demand for core strip locations in the CBD remained strong as occupiers sought to promote brand awareness and push product sales.

“With the new metro opening, we expect the improved connectivity and accessibility will drive increased pedestrian traffic to new areas of the CBD, which will result in a further decline in vacancy across prime and secondary retail space,” Olson said.

Arcade retail vacancy had the largest decline in the first half to 6.9 per cent. This is in part driven by the major refurbishment of The General Post Office, where the number of leases signed has risen, including MJ Bale’s new flagship store of 240 square metres.

Scentre is soon to launch its new-look Westfield Sydney luxury space on the corner of Market and Castlereagh streets, to be anchored by Chanel.

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“We are introducing a further five levels of luxury and high-end retail, including the new Chanel boutique,” Scentre chief executive Elliott Rusanow said. “Other brands to join the expanded Westfield Sydney will include Moncler, Omega and Canada Goose.”

Ray White head of research Vanessa Rader said the quality of CBD retail offerings was crucial for attracting premium tenants and enhancing city vibrancy.

“Creating spaces that appeal to both locals and international visitors, combined with a strong weekday workforce, will ensure the long-term viability of our retail storefronts and support smaller local businesses in this post-pandemic era,” Rader said.

“While traditional luxury items may be beyond the reach of many CBD shoppers, there’s a growing trend of specialised, high-quality food retailers. Upscale pastry shops, nut stores, chocolatiers, and ice-cream options are gaining popularity, offering consumers a taste of affordable luxury.”

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