Retail spending in QLD/WA/SA has continued to outperform the national average since October 2023, with current retail spending growing +2.64% in May-24 compared to the same month last year in these states. This outperformed the national average for this same period which only grew +1.71%.

Colliers are actively seeing interest from Food and Beverage and Hospitality operators taking notice of the increased demand and spending potential in these states and looking to open premises in Brisbane, Adelaide and Perth.

Colliers Senior Executive in Retail Leasing Brisbane, Chloe Lonergan said “As Australia experiences a culinary boom in Brisbane, Perth, and Adelaide, F&B operators are keenly eyeing new locations. In 2023, Brisbane CBD witnessed the opening of 26 iconic bars and restaurants within its CBD and fringe market, with an additional 13 opening in 2024. These developments signal a surge in demand and spending potential across these states.”

Colliers Research data shows that average rents for restaurants and dining in these cities can range from 15% to 30% less than major cities Sydney and Melbourne. 

Retail performance within these markets has been driven by robust economic backdrops in these markets, low unemployment (particularly in WA which has the lowest unemployment rate nationally) and strong demand.

While population growth continues to drive demand in these cities, on a per capita basis, people are still spending more for food and dining in these cities than they were 12 months ago; and in the case of Adelaide and Brisbane, the per capita spending is at a rate higher than population growth:

Colliers Director of Research, Nik Potter said “The second quarter of 2024 has witnessed robust rental growth for CBD retail in Brisbane, Perth and Adelaide. This growth is driven by strong local markets and significant investment in CBD precincts, attracting more visitors to these prime locations.”

Performance throughout these states has translated into significant average gross face rental growth within the CBD’s of Brisbane, Adelaide and Perth who combined have seen average CBD rents grow by +2.15% on a yearly basis to June 2024. This has outperformed the national average for this same period who saw growth of +1.96%.

Colliers Head of Retail Leasing Australia, Michael Tuck said “Rental growth within these markets has been boosted by Brisbane +3.0%, Perth +1.7% and Adelaide +1.4% (year on year to June 24). We have seen Perth outperforming in comparison to the other capital cities which is reflected in the number of international brands with active requirements in the Perth CBD looking to establish flagship stores.”

What this implies is that these robust economies, continue to attract spending from consumers, as experience-based offerings continue to dominate in the post pandemic landscape.

With the Sydney and Melbourne restaurant markets in the CBD remaining highly competitive markets, Brisbane, Adelaide and Perth continue to emerge as key destinations thanks to offering fresh produce, some of the countries best wines and they continue to propel forward as tourist destinations.

Mr Potter said “Brands are aiming to enhance their presence and seize new opportunities in Brisbane, Perth and Adelaide. Tenant demand is largely driven by food and beverage operators, dining establishments and luxury retailers. Additionally, population growth in these areas is expected to further strengthen the local markets in the future.”

Colliers Retail Leasing Executive in Western Australia, Joel Humich said “Perth has well and truly boosted in confidence in the market for both retail operators and their spending consumers. High office occupancy, boosted population growth, and a strong labour market is beginning to flow into the food and hospitality space.”

Colliers has collaborated in and around precincts within Perth’s CBD, including Brookfield Place, Perth City Link, Perth Hub, and the city’s strip malls. These locations host a variety of future and current operators with diverse cuisines and concepts, contributing to a wide range of entertainment, food, and beverage options for the city.