Investor demand for retail assets continues to strengthen as capital returns to the sector. Lower funding costs, resilient household spending, and a robust income outlook are driving renewed interest from institutional investors. With competition intensifying for prime assets and retail returns leading sector performance, the market is well-positioned for a strong 2026.
Highlights:
- Investment volumes ($10m+) reached c.$2.2 billion, holding steady year-on-year (Y/Y) and nearly double the 2023 low.
- Institutional capital is back, driving 58% of activity, up from 40% in 2024, as funds recalibrate portfolios and Regional Centre asset sales amplify the trend.
- Regional Centre led Q3 volumes ($1bn, +27% Y/Y), despite limited stock.
- Neighbourhood Centre sales rose 26% Y/Y, with institutional buyers accounting for 64%, compared to just 6% a year ago.
- Pending deal flow remains robust, with over $3.5bn in transactions as we enter Q4.