Melbourne has recorded its highest shopfront occupancy rate in more than 5 years, as businesses continue to snap up retail space across the city.

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.

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.

Major retailers invest

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.

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

“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.

“The number of vacant shopfronts has more than halved since 2021 – showing four straight years of improvement for our local economy.”

City-wide momentum

The momentum is being felt right across Melbourne. In the 6 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.

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 reflects the decrease in shopfronts under construction. The City of Melbourne continues 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.