Melbourne retail space is scarcer than ever according to experts
When beauty giant MECCA opened its mammoth flagship on Bourke Street earlier this year, it was a sign that Melbourne’s CBD is buzzing and retail is operating at an all-time high.
Where once vacant shopfronts lined the streets in the wake of COVID lockdowns, today it’s rarer to see a “for lease” or “for sale” sign. According to Knight Frank, central CBD retail vacancy has plunged from almost 28 per cent in 2021 to just 5.5 per cent in 2025.
The dramatic shift is fuelled by the return of international tourists and the constant pull of Melbourne’s inner city culture populated by top eateries, retail and events. Every week, hundreds of thousands of people are pouring through the city, and retailers want to be right where the action is.
“Melbourne continues to be the magnet to major national and international attractions, and brands are pivoting to take advantage of this,” says Michael Di Carlo, Knight Frank Director Retail Leasing in Victoria.
“This means prospective retail tenants come from both international names and, of course, local businesses, with Melbourne’s famous food and coffee culture specialists always eager to find space in the city.
“As price pressures ease and interest rates continue to fall back to a neutral setting – both here and abroad – expect the cultured, fun city to go from strength to strength and the leasing environment to consequently get even tighter.”
For brands wanting visibility and foot traffic, these addresses won’t be around for long.
329 Bourke Street
Positioned on one of Melbourne’s busiest retail strips, this site puts your business in the thick of the CBD’s shopping core. Bourke Street carries some of the highest pedestrian counts in the city, thanks to the Bourke Street Mall, tram routes, and constant tourist activity. For a retailer, that translates into steady exposure and the chance to capture both intentional shoppers and impulse buyers.
Ground Floor, 25 Elizabeth Street
Elizabeth Street has become a magnet for food, fashion, and lifestyle brands, evolving into a dynamic corridor that catches traffic flowing between Flinders Street Station and the heart of the CBD. A ground-floor tenancy here ensures maximum visibility to a mix of office workers, students, and tourists.
Shop 3B, 220 Collins Street
Collins Street is Melbourne’s prestige strip where luxury brands, including Gucci and Christian Dior, stand proudly. That’s why this shopfront offers brand alignment with some of the most exclusive names in retail. For operators targeting an affluent, design-conscious audience, Collins Street delivers both visibility and credibility.
6 Degraves Street
Degraves Street is one of Melbourne’s most photographed laneways, beloved by tourists and locals for its cafe culture and boutique retail. A presence here means tapping into a steady stream of foot traffic from morning to night. For a creative brand or food and beverage operator, this is cultural currency as much as it is a retail opportunity.
Level 03, 226 Swanston Street
This upper-level tenancy on Swanston Street offers something different, with a chance to create a shopping destination marked on shoppers’ bucket lists. From a concept store or flagship showroom, this site gives brands the flexibility to stand out in one of the busiest corridors in the CBD.
