SE Queensland Retail Market Dynamics Q2 2026

• Leasing demand has slowed, with the exceptions of convenience and electric vehicle groups.
• Three completions were recorded in the neighbourhood sub-sector over the quarter.
• Investment volumes strong and outperforming both industrial and office.

While enquiries have generally slowed, strength in convenience retailers has sustained and Chinese electric vehicle manufacturers have emerged as a very active group. Household spending grew 0.5% month-on-month and 6.3% year-on-year in May 2026, above the national averages of 0.4% and 5.2% respectively.

Three completions were recorded in the quarter, bringing 15,800 sqm to market in the neighbourhood sub-sector. There are eight projects under construction, set to bring 65,200 sqm by 2028. Retail generated the largest investment volumes of the core sectors in Queensland recorded at AUD 1,067.9 million, as another regional transaction drove the stronger level for the quarter. Yields were unchanged across all sub-sectors in the quarter.

Macroeconomic headwinds are likely to keep vacancy around current rates as timing around tenant decision making remains extended. Five completions expected by year-end across LFR and neighbourhood sub-sectors. Fewer commencements are expected as construction costs in the region continue to accelerate, dampening prospects of feasibility. The retail sector is expected to continue generating investor interest, underpinned by a low supply environment and its ability to generate consistent inflation protected income streams, as well a forecasted rise in rents.