Melbourne CBD Retail Vacancy Rate Plummets

After record high vacancy rates in 2021 and worries that the pandemic had all but killed it off, Melbourne CBD’s retail sector has bounced back. 

The City of Melbourne’s central CBD retail vacancy rate dropped to 5.5 per cent in May of this year from 6.5 per cent in November 2024. 

In 2021 it set a record high of 27.9 per cent. 

The City of Melbourne Council said that almost 85 per cent of shopfronts across the city were now occupied by global, national and independent retailers. 

The broader CBD retail vacancy rate recorded a low of 7.8 per cent in May, down from 8.4 per cent in November 2024.

Across the municipality, the rate has improved to 9.1 per cent from 31.5 per cent in 2021. 

Docklands’ vacancy rate has fallen by 10 per cent during the past two years to 14.7 per cent.

The city has stepped in to mitigate the impacts of the lockdowns with its Small Business Grant program that has helped 15 city businesses activate empty stores during the past two years. 

▲ Retail vacancy rates in Melbourne’s CBD declined to 5.5 per cent from 27.9 per cent in 2021.

It has also supported 123 businesses to set up in the CBD through the Business Concierge team. 

There are several major store openings planned before the end of the year, including Mecca at Collins Arcade and TK Maxx, while POP MART and JD Sports have opened this quarter. 

City of Melbourne Lord Mayor Nicholas Reece said the data reinforced that Melbourne was a good place to do business.

“A CBD retail vacancy rate of just 7.8 per cent is remarkable for a city of our size and global standing,” Reece said.

The City of Melbourne collects and reports retail vacancy data every six months.