The promising outlook for Australian Convenience Retail Real Estate

As investors seek dependable income and long-term value, Australian convenience retail offers an attractive proposition grounded in everyday demand and local connectivity.

Amid positive consumer spending, strong leasing and near-record low vacancies, Australian retail assets are delivering steady income returns. Looking forward, with capitalisation rates and valuations stabilising, investment activity strengthening and a relatively limited supply pipeline, we are optimistic about the sector’s performance.

Against this backdrop, convenience retail – smaller shopping centres anchored by essential-goods retailers and designed for quick, frequent trips – offers a compelling opportunity for stable, income-generating retail exposure. The sub-sector’s focus on non-discretionary spending has historically underpinned outperformance and resilience, with consistent foot traffic and solid tenant fundamentals aligning with everyday consumer needs.

Our latest Insight paper explores our outlook for Australian retail real estate and why we retain a continued conviction in convenience retail.