The local prime Toowoomba CBD retail strip continues to be impacted by larger shopping centres in the area, according to Ray White Toowoomba.

Research conducted by the agency throughout the past two years indicates there has been a high level of tenant movement recorded over the past 12 months.

A retail survey of 155 strip properties totalling approximately 48,850sqm of space, and omitting assets which were being refurbished and not suitable for occupation, found there to be a vacancy figure of 18.66%.

Of this total stock, the services industry represented the largest amount of space at 28.14%.

According to Ray White, food retailing including Cafes & Restaurants continues to occupy a smaller than average area along the strip, despite the number of new establishments emerging over the past couple of years, with occupiers now representing just 8.30%, down from 10.14% last year. 

The agency also noted there had been a reduction in the Clothing & Soft goods and furniture sectors with key vacations across the strip.

A report generated by Vanessa Rader of Ray White expected to see services continue to be the hero class for retail strips by aiding the growth of pedestrian activity. 

"There are several premises undergoing refurbishment and recent sales of premises ripe for redevelopment will continue to see an improvement in the quality of CBD retail stock," it said.

"Vacancies have grown over the past year and limited leasing enquiry is likely to impact the vibrancy of the strip in the short term, keeping rental rates competitive, while on the investment side, the difficulty in obtaining finance will see non-local demand interest fall and keep yields at an elevated level."

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