and convenience centres.  This milestone also reflects something far broader, a structural rebalancing in how capital and retailers are responding to shifting consumer behaviour, lease models and risk appetite. Charter Hall Group CEO David Harrison said in an announcement that the fund’s inclusion “provides our investors with a suite of funds spanning three core sectors, including retail, industrial and office,” holding CCRF as part of a broader diversification of exposures based on sector preferences. The group’s Retail CEO Ben Ellis added that the move underscores “the dramatic shift in wholesale investor appetite towards convenience retail, predominantly leased to non-discretionary retail tenant customers.” While traditional malls and large-scale shopping centres remain under pressure from changing footfall patterns and the lingering Covid-19 hangover, convenience is weathering the storm.  According to Charter Hall, assets in the CCRF have generated returns of around 9.4 per cent annually, significantly outperforming many large-mall funds.  The group now manages a $16 billion convenience retail platform anchored by metropolitan shopping centres and Bunnings-leased assets. The local advantage Zelman Ainsworth, director of Ainsworth Property, says the shift is playing out visibly in leasing patterns and retail strategies.“Retailers have been reverting to retail basics, notably knowing your customers better and adapting to local markets, with a key focus on convenience,” he told Inside Retail. “Retailers have more flexibility to adapt their stores to the local market in neighbourhood centres, as opposed to the bigger shopping centres. Both play major roles in the retail landscape, but have different retail concepts and strategies.” That flexibility is proving critical. “Neighbourhood and convenience centres are gaining share because they suit frequent, mission-based trips and let retailers localise quicker,” Ainsworth said.  “Growth is strongest in everyday services and food. Major malls are steadier, with momentum in destination offers. The winning approach is tailoring range, price and hours to each catchment.” As capital drifts toward smaller-format centres, the framework of retail real estate is being redrawn. Lease terms are evidently shorter, incentives leaner, more scaffolding than subsidy and the real prize lies in anchored neighbourhood hubs with good light, visibility and air. These are the assets moving fastest, pragmatic, accessible and underwritten by occupancy costs that leave room to breathe. The shift now favours agility over grandeur. Smaller retailers, Ainsworth said, are becoming the gravitational pull of local centres, “artisan bakeries, premium butchers, fishmongers”, drawing customers through craft, quality and experience rather than size. Their success, he added, depends on landlords who are prepared to share the risk, offer help with shop fit-outs, and accept shorter commitments in exchange for the slow burn of local loyalty. Beyond the balance sheet, Ainsworth said the most proactive landlords are taking a long view on culture and community. “Proactive landlords are targeting artisan makers and retailers to create a unique and memorable experience for customers,” he said. “Some councils are being proactive too, with programs like farmers’ markets and street fairs successfully activating a sense of local community.” This, in turn, feeds the investor story. As Charter Hall continues to expand its network through acquisitions such as Melbourne’s Burwood One Shopping Centre and Sydney’s Chullora Marketplace, the convenience sector is becoming both an economic and social anchor. What it means for retailers For retailers weighing new sites, the value of proximity, purpose and adaptability is palpably growing.The neighbourhood model rewards operators who can adjust their range and service offer to local rhythms and collaborate with landlords to create destination value at a community level. Convenience retail may not carry the glamour of flagship malls, but it carries something more enduring: resilience.