Even as overall market conditions remain subdued, an influx of foreign retailers and fashion brands is driving a race to beef up space within the shopping centre market in Australia.

In its third quarter Retail MarketView, real-estate services firm CBRE says international demand was the driving force behind plans to create more than 1 million square metres of regional shopping centre space over the next three years, including a 35,000 square metre expansion of Macquarie Centre in Sydney, a 29,800…