By Cameron Henshaw
Retail Projex manages more than 700,000m² of retail assets across Australia and brings over 80 years of combined market expertise to the sector.
A Market Poised for Renewal
As we enter 2026, sentiment across much of the retail property sector has shifted firmly into positive territory. Real wages growth, stabilising interest rates and a measurable lift in consumer confidence have created the right conditions for a strong year ahead.
While the cost-of-living pressure is still very real for many households, the fundamentals supporting retail property remain resilient. Investor appetite for high quality retail assets continues to strengthen and well-managed centres, particularly those positioned in growth corridors are set to benefit from renewed spending momentum.
Retail Property Outlook: Quality, Curation and Capability
Investor demand is increasingly concentrated on prime assets, retail’s equivalent of blue-chip stocks. Properties in expanding suburbs with rising populations are being secured quickly and at healthy prices, while centres in more established, saturated catchments are facing a more selective market.
For both existing and new centres, the art and science of tenant mix has never been more important. Australian shoppers expect convenience, cohesion and connection in their retail experiences. This often translates to:
- A strong anchor tenant, such as a full-line supermarket in rapidly growing suburbs
- Integrated lifestyle precincts that pair gyms, wellness services and healthy food operators
- Enhanced food, beverage and entertainment zones that activate the night economy
- In the case of Large Format Retail, the most dominant centres are a curated mix of lifestyle uses in outdoor recreation, sports as examples as well as home related products and services such as gyms and casual dining
Beyond mix, retailer engagement is emerging as a decisive competitive advantage. Close, consistent communication with tenants offers invaluable insights: What support do they need? Is the centre’s ecosystem working for them? Are emerging consumer preferences being captured in real time?
Invested retailers are often the first to identify the adjustments required to elevate a centre from good to exceptional. In a tightening market, these fundamentals, mix, engagement and operational excellence are what unlock a retail asset’s full performance potential.
Retail Projex delivers value where it matters most: in the everyday performance of retail assets. As specialists in hands‑on retail property management, our teams combine technical expertise, operational discipline and real on‑the‑ground understanding to elevate every centre we manage.
Our deep leasing expertise ensures not only the right tenants are secured but that each tenancy contributes strategically to the broader ecosystem of the centre. At Prospect Homemaker Centre, this approach has already reshaped the customer experience. Recent additions include Planet Fitness, Bluefit swim school, and a new F&B precinct, complete with upgraded amenities — all designed to enhance foot traffic, diversify offerings and create a more vibrant destination for the community.
Retail Sector Outlook: Confidence with Caution
Deloitte Access Economics forecasts retail sales growth of 2.3% in 2026 and 2.6% in 2027, underpinned by rising real wages and gradually improving household sentiment. The Wage Price Index recorded 3.4% growth to September 2025, signalling genuine wage recovery.
At the same time, the cost-of-living crisis continues to shape consumer behaviour. Value now extends far beyond price, it’s reflected in experience, ethics, convenience and quality. Retailers that provide real value in all its forms will be best placed to capture consumer spend.
Interest rate stability will be a critical determinant of how far confidence can go. A steady or falling rate environment will sustain momentum; upward adjustments would soften sentiment.
The New Retail Playbook for 2026
Salesforce’s global Connected Shoppers Report outlines the key trends shaping the immediate future of retail. Among the most influential:
- Unified commerce: one system managing the entire retail operation
- Experiential shopping: customers now expect experience, not just transaction
- Social-first discovery: shoppers turn to social platforms before search
- Tools that empower in-store staff: simpler systems, faster workflows
- Mobile-assisted shopping: for reviews, comparisons, loyalty and payment
To this, we add a critical sixth factor:
True omnichannel retailing
Every touchpoint, social, online, in-centre and mobile must feel connected, consistent and curated. Successful centres will support tenants in delivering this seamless experience.
As Deloitte’s David Rumbens notes, “Most signs are pointing in the right direction and we’re on our way to a stronger retail environment.” We agree and we see this reflected daily across the assets we manage.
Why We’re Optimistic About 2026
Off the back of a strong 2025, the year ahead is full of opportunity. Low volumes of prime stock coming to market are driving strong interest in quality assets, a trend we expect to continue.
Retail properties that combine:
- a well-calibrated tenancy mix,
- strong retailer engagement, and
- the full suite of modern tools, from data-led management to omnichannel marketing
will not just perform but thrive.
Retail Projex is uniquely positioned to support this growth. Our management approach integrates operational excellence, leasing strategy, retailer engagement and customer insights to maximise asset value. Because retail is what we do, our clients benefit from specialist expertise that generalist managers simply cannot match.
At Retail Projex, we’re excited to help shape that success. Retail is what we do and in 2026, it will reward those who do it exceptionally well.