Shorter terms take the lead in suburban SEQ retail

Five-year leases are no longer dominating the smaller-format retail market. Across suburban Greater SEQ, the 60-month lease has gone from the default term to the second most common in four years.

Arealytics reviewed retail leases of 300 m² or less across suburban Greater SEQ, outside the CBD. In 2022, 56.0% of those leases were signed for 60 months. In 2026 to date, that share has fallen to 18.3%, with 36-month terms now leading at 25.3%. Overall, 65.3% of leases signed this year are for three years or less.

Five years was the default

In 2022 and 2023, the three most common terms were all five years or longer: 60, 84 and 72 months. Together they accounted for 82.0% of leases in 2022 and 78.1% in 2023, and the 60-month share edged up to 57.8% in the second year.

Then the shorter terms arrived

The shift began in 2024. The 60-month share fell to 43.2% and the 36-month lease entered the top three for the first time, at 22.0%. In 2025, five-year terms fell again to 33.3%, 36-month leases rose to 22.9% and 24-month terms appeared in the top three at 13.0%.

In 2026 to date, the order has flipped. The 36-month lease leads at 25.3%, the 60-month lease sits second at 18.3% and 12-month terms are close behind at 17.8%.

Flexibility for retailers, more lease events for landlords

The shift suggests smaller retailers are placing greater value on flexibility as trading conditions and space requirements evolve. For landlords, shorter commitments mean more frequent lease events, but also more opportunities to review rents, strengthen the tenancy mix and respond to changing local demand.