Australian Retail Property Investment Hit $12.7 Billion Last Year. The Money Is Chasing Foot Traffic Again.

CBRE's latest data shows total Australian retail property transactions reached $12.7 billion in 2025. Of that, $6.9 billion was concentrated in super regional, major regional and regional shopping centres. The institutional money is flowing back to physical retail.

This is not a blip. It reflects a structural shift in how investors view Australian shopping centres after years of e-commerce anxiety.

Three forces are converging. Rental fundamentals are improving. The supply pipeline is constrained, with only 0.7 million square metres of new shopping centre space forecast between 2026 and 2028, below the pace of Australia's million-person population growth over the same period. And pricing is becoming increasingly asset-specific, rewarding high-quality holdings with strong income sustainability.

Investment activity has continued into 2026. Several major assets are currently in due diligence, including a 50% interest in Westfield Marion and a full interest in Greensborough Plaza.

When institutional capital floods into retail property, it signals confidence in physical commerce at a time when many marketers have over-indexed on digital. Shopping centres are investing in experience, events and community, which means tenants will face rising expectations around their in-store marketing.

For brands that rely on physical retail, this is a tailwind. More investment means better-maintained centres, higher foot traffic and more co-marketing opportunities with landlords. For brands that have neglected their physical presence, the gap between well-capitalised competitors and everyone else is about to widen.

Physical retail is not dying. The money just told you that.