Canberra's Civic Centre retail precinct recorded vacancy of 13.2 per cent in 2026, an improvement from 15.5 per cent in both 2024 and 2025. This modest recovery comes against a backdrop of considerable disruption in the precinct, with ongoing light rail construction and new development activity reshaping the city centre and affecting foot traffic and access in the short term. 

The office picture is considerably more troubling than the headline Canberra figure suggests. While total Canberra office vacancy sits at 14.7 per cent, within Civic centre specifically office vacancy has grown considerably to 26.4 per cent, a figure that does not yet factor in the heavy work from home rates still being recorded across both federal and state government departments headquartered in the city centre. This combination, elevated vacant stock alongside a workforce that is only partially returning to the office even where leases remain in place, means Civic centre's genuine daytime population is considerably thinner than office vacancy figures alone would indicate.
 

The tenant mix reflects a precinct increasingly reliant on food and beverage to sustain activity. Cafés and restaurants now account for 32.9 per cent of tenancies, up from 29.0 per cent in 2024, easily the largest category and continuing to grow each survey period. Services remain the second largest category at 21.7 per cent, though this has eased from 23.9 per cent in 2024. Clothing and soft goods sits at 11.2 per cent, broadly stable across the three years. Notably, a number of the food operators within the precinct have changed brands in each of the last three survey periods, a pattern of high tenant turnover that points to genuine difficulty in trading conditions even within the category showing the most growth on paper.

The quiet mall precincts continues to cause concern. Garema Plaza,, recorded vacancy of 20.0 per cent, while Ainslie Place, sits considerably higher again. Both point to the challenge facing Civic centre's more enclosed retail spaces as foot traffic softens. By contrast, City Walk and Bunda Street, the precinct's larger and more exposed retail spines, recorded comparatively tighter vacancy, benefiting from higher visibility and through traffic despite the broader disruption underway.
With limited office workforce regularly in attendance, university students are increasingly filling the activation gap in Civic centre, an influence expected to grow further as the UNSW Canberra city campus development and the theatre precinct progress. Where government departments have pulled back attendance, a younger, more consistently present student population is beginning to reshape who is actually using the city centre day to day and retailers positioned to capture that shift may find themselves better placed than those still reliant on a public service workforce that is proving slow, and in some cases reluctant, to return.
 

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