Insights H1 2026 | 25 In terms of leasing, Daniel says, “Retail leasing has seen solid activity in 2025. However, retailers are being prudent in location choice. Strong supermarket-based assets and large format retail are the favoured assets.” High development costs and planning constraints, leading to lower retail supply, are underpinning rental growth. Population growth, particularly in areas with strong demand from young consumers, will continue to drive retail sales growth (for good quality retailers), leading to rental growth and lowering vacancy rates. “We expect to see demand for retail space to continue to be strong in well-established and strong performing supermarket-based centres, especially those centres with good accessibility, that are clean and wellmaintained,” says Daniel. Retail leasing opportunities will come through remixing of current tenants, exiting those retailers which have not evolved, and replacing with tenants that create exciting experiences. Owners and managers looking to improve centre performance against competing centres through centre refurbishments and small scale projects will also continue to drive activity.
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