McGees Property Adelaide Large Format Retail Outlook 2026
Adelaide and South Australia’s large format retail market has been seeing plenty of activity from a wide range of tenants, showing strong signs of a healthy market moving into 2026.
According to McGees Property’s Large Format Retail Outlook, developments in high-growth locations are performing strongly, and the state can expect to see new retailers on the scene this year – including local as well as national tenants wanting to expand into the South Australian market.
Growth areas buoyant
McGees Director – Large Format Retail, Dallas Sears said most of the recent activity of 2025 was from retailers wanting to be in the growth areas of Adelaide, where there are excellent opportunities for development.
“Adelaide has the coast on one side and hills on the other, so residential growth is all north and south, with a bit in the hills. This is where our developments have been and they’ve been leasing really well.”
Among those, the Noarlunga Heights Super Centre in Adelaide’s south – previously a Bunnings – is now all under offer and will be redeveloped during 2026, while in the north, Tudor Vale Shopping Centre is being developed over the next 12 months and before work commences on the large format retail portion, two-thirds of which McGees Property already has under offer.
“There are a few other exciting developments coming up once the approvals come through in second and third quarters of 2026, as well as some redevelopment works to create new large format retail space.” Sears said.
She said those who can strike a delicate balance with the timing of project delivery will benefit greatly in 2026.
“Right now, the key to attracting high-quality tenants seems to be having a development in a high-profile growth suburb, and getting in at the perfect time. You want to be in before everyone else gets there, but not before the residential growth is there.”
Interest rate movements to make a varied impact
Interest rate movements in 2026 will have different impacts on different segments and retailers within the large format retail sector.
“Different retailers perform better in different cycles of the economy, just like different retailers perform better with different demographics,” Sears said.
She said retailers who rely on big-ticket purchases that can be put off until necessary – things such as high-end furniture, “niceties” like pretty pillows and decorative items, or electronics that aren’t necessary – typically see a slowdown if interest rates go up.
“However, when interest rates go up, we’re likely to see retailers that sell cheap entertainment do really well. Think outdoor and sporting equipment, camping, fishing, board games, etc. as well as automotive, because people fix their own cars rather than pay to have them fixed.
“Our challenge and skill lies in knowing who to target for where.”
Retailers who can add value will thrive in most economic climates, Sears said.
“These are the retailers who instil loyalty with their customers, who go above and beyond with their customer service and are easy to deal with, and who are, simply, easy to get to – they’re located in the right place for their customers.”
New faces
Sears expects to see fill-in tenants busy in the market in 2026.
“These are the operators who lease space after the anchors have been locked in for new development, and are usually new retailers and service entrants to the South Australian market,” she said.
“There are also a lot of new quick service restaurants who looking to come to Adelaide and they won’t all be able to roll out enough stores to be successful – they need critical mass in order to have enough stores to be recognised.
“That will be a particularly competitive part of the market.”
And one particularly important segment of the market continues to thrive. “Furniture retailers are still looking to expand – this is generally a signal of a healthy market. They’re the first ones out when things go wrong and the last ones back in when the market ticks up again,” Sears said.
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