New City of Melbourne Council data has shown the city continues to record the lowest retail vacancy rate in the country.
After reaching a record high of 31% in 2021, Council’s latest Melbourne Economy Snapshot reveals retail vacancy rates in the CBD have halved in the past year – dropping from 13% in April 2023 to a low of 6.5% in April 2024.
The broader municipality’s retail vacancy rate is also down to 10.7%, dropping by a third in the last 12 months.
“Melbourne means business – we’ve once again recorded the lowest retail vacancy rate in the country, showing the city is heaving with activity and support for local retailers,” said Lord Mayor, Sally Capp.
“We understand there are many precincts and traders finding it more difficult than normal to do business right now – and we’re doing what we can to support them, including offering grants and expanding our Business Concierge team.”
The Snapshot also reveals more people are coming into the city on Mondays during peak morning commute times, without a drop in attendance on other weekdays – with Flinders Street Station in February recording its busiest Mondays since 2020.
Council says the uptick in commuter activity coincided with an increase in dining and entertainment spend, which has tripled since 2021 – showing workers are making the most of their time in the city and supporting traders on more days of the week.
Next-door neighbours in the city’s Centre Place – famous hot-chocolatier, Mörk and upcycling boutique, Beekeeper Parade (pictured) – are two of the 15 businesses that have activated empty shopfronts in the past year, thanks to Council’s Small Business Grant program.
They join over 800 others who opened shopfronts across the city in the past year.
“The City of Melbourne Small Business Grant has allowed me to open my first permanent shop since the lockdowns,” said Beekeeper Parade founder, Koky Saly.
“Centre Place is an iconic, thriving laneway – I am super excited to be a part of it. We’ve only just opened shop and have already hired three new staff members to help run things, and upcycled over 90 tonnes of Melbourne’s excess fashion and textile waste.”
“With business going so well, we’ve even been able to open a second shopfront in Block Place – another iconic Melbourne laneway. It’s a dream come true to me, and I can’t wait for the rest of the year.”
The Council says local neighbourhoods are also reaping the benefits, as more restaurants and cafes set up shop in Carlton, North Melbourne and Kensington – where shopfront vacancy rates have dropped around 40% in the past two years.
In the same period, retail vacancies on Lygon Street decreased by over 50%.
“We’re so proud Melbourne has the lowest retail vacancy rate of any Australian city, with our rates reducing faster than anywhere else in the country,” said City Activation portfolio lead Councillor, Roshena Campbell.
“It’s great to see neighbourhoods beyond the CBD are also seeing shopfronts springing to life – with promising downward vacancy rates in Carlton, North Melbourne and Kensington.”
Since retail vacancy peaked in 2021, Council has been working to fill empty shopfronts. Key initiatives include the $2.6 million Shopfront Activation program in partnership with the Victorian Government, the annual $500,000 Small Business Grants program, and the establishment of Business Concierge – with an extra $1.6 million allocated to expand the service in in the draft Budget 2024–25.
To view the latest Melbourne Economy Snapshot, visit City of Melbourne.
