Melbourne’s shopfront ‘renaissance’ reaches record high

MELBOURNE has recorded its highest shopfront occupancy rate in more than five years, and Melbourne Lord Mayor Nick Reece has labelled it Melbourne’s “retail renaissance”.

The City of Melbourne’s latest Shopfront Vacancy Audit found 85.6% of shopfronts were occupied in April 2026, up from 84.4% a year earlier.

“Metro, Mecca and matcha have fuelled a retail boom across the city and the data proves it – there really is a place for every business in Melbourne,” Cr Reece said. 

“We’re seeing long-vacant shopfronts leased and new retail spaces snapped up as soon as they hit the market – clear signs Melbourne's retail renaissance is well underway.”

According to Cr Reece, the number of vacant shopfronts has more than halved since 2021, “showing four straight years of improvement for our local economy”.

High occupancy despite  ‘growing retail market’

The result comes even as dozens of additional shopfronts hit the market this year – with major projects including Melbourne Walk, Collins Arcade, and the Metro Tunnel stations delivering a new generation of retail spaces and driving investment across the city.

As Mecca approaches its first anniversary on Bourke Street, Melbourne continues to attract investment from major retailers – with apparel brand Rodd & Gunn opening a flagship store last year and Japanese retailer MUJI set to open a new store in 2028.

High demand is also giving long-vacant sites a new lease on life, with businesses like Fico in Carlton and Kurabito Sake Shop in North Melbourne taking over shopfronts that had been empty since 2020.

The momentum is being felt right across Melbourne. In the six months to April 2026, 86 additional shopfronts were filled across the CBD, while Southbank recorded its highest-ever occupancy rate of 90.2% – driven by new openings including Coupette at the Hannah Hotel, PLAYit Southgate and Mr Summit Cafe.

Culinary revival in Lygon St

According to the Lord Mayor, Lygon Street’s culinary revival has gone from strength to strength, with the construction rate dropping from 6.1% to 3.9% while occupancy has increased – showing new spaces being filled with eateries like Sangaweech and Garfield Pizzeria.

Occupancy in CBD West rose by more than 2%, driven by new traders around West Side Place, while Docklands recorded 4% growth as Melbourne Quarter continued to attract new businesses.

While the city's overall vacancy rate has risen slightly to 9.5%, this reflected the decrease in shopfronts under construction, City Economy and Business portfolio head, Cr Kevin Louey said.

He said the City of Melbourne continued to support businesses to open and grow through its dedicated Business Concierge service – the largest council-run service of its kind in Australia. Over the past year, the team helped more than 110 businesses open across Melbourne, with 66 more in the pipeline.

“With around 330 shopfronts currently under construction – it’s clear developers, retailers and hospitality businesses see Melbourne as a place to invest, grow and succeed.”

www.melbourne.vic.gov.au

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