Retail boom drives food and beverage expansion in Brisbane, Perth and Adelaide

Colliers Research has released its Q2 2024 Retail Snapshot, highlighting strong growth in food and beverage (F&B) retail spending across Queensland, Western Australia, and South Australia.

Retail spending in these states grew by 2.64% in May 2024 compared to the previous year, outperforming the national average of 1.71%.

Chloe Lonergan, Colliers Senior Executive in Retail Leasing Brisbane, 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.”

Colliers’ data shows that average rents for restaurants and dining in these cities can be 15% to 30% lower than in Sydney and Melbourne.

Nik Potter, Colliers Director of Research, noted: “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.”

Combined CBD rents in Brisbane, Adelaide, and Perth grew by 2.15% annually to June 2024, outpacing the national average of 1.96%.

Michael Tuck, Colliers Head of Retail Leasing Australia, 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.”

Joel Humich, Colliers Retail Leasing Executive in Western Australia, added: “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.”

The report suggests that Brisbane, Adelaide, and Perth are emerging as key destinations for F&B operators, driven by fresh produce, quality wines, and growing tourism.