Retail property didn’t fade in 2025. It recalibrated. Investment volumes surprised to the upside, and 2026 is shaping as a year where selective retail outperforms more volatile commercial segments.
This isn’t a discretionary comeback. It’s a yield-and-income play.
What buyers are targeting in retail now
The retail assets trading well share common traits — they behave more like infrastructure than fashion.
Non-discretionary anchors with daily visitation
Strong catchment growth underpinned by housing supply
Long WALEs with CPI-linked uplifts
Large-format retail with irreplaceable locations
Convenience-led mixes that support repeat spend
Soft specialty retail without a remix strategy remains penalised.
Why leasing strategy now drives value
Retail success in this cycle is decided early. Centres that pre-lease the logic of the mix outperform those that wait for the market to decide.
Visual tenant adjacencies accelerate leasing decisions
Footfall logic replaces hope-based tenancy mixes
Growth narratives must be backed by population data
Retailers want clarity on access, signage, and timing
Marketing collateral must suit national leasing teams
Retail doesn’t need hype — it needs structure.
Bought / sold signals to watch
Bunnings Epping – $49.5m at a 4.92% yield
Large-format retail with a blue-chip covenant remains one of the most aggressively priced defensive assets.
Mount Barker KFC – $6.1m at a 3.85% yield
Long-leased fast food in growth corridors continues to attract yield-focused capital.
