Concerns For Oxford Street As More Shopfronts Remain Empty

Sydney’s iconic Oxford Street, long considered the heart of Australia’s LGBTQIA+ nightlife and history, is facing renewed concern after new figures revealed nearly one in three shopfronts along the Darlinghurst strip are sitting empty.

According to reporting from the Daily Telegraph, vacancy rates on the historic strip have reached 31 per cent, with boarded-up shops, graffiti and ongoing construction delays contributing to what some observers describe as a struggling retail environment.

Even when excluding sections impacted by major redevelopment works, the publication claims vacancy rates still sit at 26 per cent, far higher than Sydney’s CBD average of 4.3 per cent.

The future of Oxford Street

The figures arrive just weeks after the closure of one of Oxford Street’s most recognisable LGBTQIA+ venues, the Stonewall Hotel, the heart and soul of gay Oxford Street, after it entered administration in March.

The loss of Stonewall added to growing concerns about the future of the precinct, particularly as redevelopment and shifting nightlife habits reshape Sydney’s queer landscape.

Just months earlier The Bookshop Darlinghurst announced that it would be closing its doors after more than four decades of serving Sydney’s LGBTQ+ community.

Following its closure the historic store location was announced as one of several buildings on Oxford St proposed for heritage listing.

Property expert Rob Klaric told the Daily Telegraph the street’s decline has been noticeable, saying “It’s like the oxygen has been turned off and they’ve slowly suffocated.”

While Oxford Street’s challenges have been building for years, recent construction delays linked to the $200 million Oxford and Foley redevelopment have also been blamed for reduced foot traffic and business closures.

In 2024 local business owners came together to express their frustration at the lack of support from developers and council during the ongoing redevelopments.

In 2026 community voices remain divided on whether the situation signals decline or transformation as more promises of invigoration came from the government, with the release of renders of upgrade plans for the iconic street in November 2025. The images showed upgraded footpaths, improved street design, more trees, open space, better lighting and the completion of the eastern cycle path from Taylor Square to Centennial Park

 

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Rainbow Precinct president Shane Warren told the Daily Telegraph he remained optimistic about the street’s future, saying: “I’m not an alarmist about it.”

Stephan Gyory, Chair Of The Darlinghurst Business Partnership told The Star Observer that more needs to be done to understand the data behind the vacancy rates.

“A vacancy rate on its own doesn’t tell us much — we need to know how long they’ve been empty, who owns them, and what’s actually driving it.”

“No one’s systematically gathering that information, and without coordinated precinct management, that gap just sits there” he said.

“This is something that could be assessed quickly by an independent, qualified group within a matter of months, and the capability to support that already exists across the City of Sydney, State and the 24-Hour Economy Commissioner — it’s really a question of coordinating it and getting it done.”

Gyory stressed there was more to understand about the evolving nature of the street and the people who use it.

“The underlying conditions are still strong — Oxford Street remains culturally significant, but the way people use it has changed, and what we’re seeing is a highly visible, localised issue on a very symbolic street.”

Oxford Street’s importance to LGBTQIA+ communities remains significant, with recent news reports of moves to heritage list historic queer venues across the precinct in recognition of its cultural significance.

The street’s legacy stretches back decades, with the iconic street still serving as the traditional Mardi Gras parade route, which is now being added to the national heritage list.

Despite the challenges, there are signs of cautious optimism. The Daily Telegraph reports expanded outdoor dining, late night trading changes and government funding for venues as part of efforts to revitalise the area.

With the 50th anniversary of Sydney’s first Mardi Gras approaching, many stakeholders are calling for collaboration to ensure Oxford Street remains a vibrant and inclusive destination.

This story was originally published on Star Observer.