Some Toombul retailers are exploring legal avenues for compensation from developer Mirvac after its decision to cancel leases at the Brisbane shopping centre.

Toombul Shopping Centre was badly damaged in February's flood event and the owner of the site said the decision not to reopen was a difficult one to make.

Some business owners have sought advice after losing millions from the sudden termination of their leases, prompting Mirvac to offer a cash payment of three months' rent to displaced retailers.

Function Well gym owner Darren Bain, newsagent Shane Griffin and Hairhouse Warehouse owner Jim Demetrios met with Noble Advice lawyer Brian Noble this week, as well as federal Lilley MP Anika Wells and Leanne Linard, the state Member for Nudgee.

Mr Bain said the meeting was a chance to bring "financially, mentally, emotionally exhausted" retailers together to "explore their options".

"People are in serious serious financial troubles and it's no fault of their own," he said.

"Mirvac decided to terminate their leases and they still have an asset — they always had a master plan to redevelop and could sell the site if they wanted.

"It's not easy — it took us years to get that site.

"It is a six-month process to negotiate the commercial terms we need.

"There's a lot to secure a new site, plus we have the amount of debt we have on that site."

Mr Bain said if he was offered the chance to reopen at another site he "would have explored that with them".

"I can't comprehend the way a company the size of Mirvac has handled this," he said.

"We were only 10 months into the first term or our lease, which was 10 years.

Shane Griffin owned Toombul Nextra News and said after 28 years of operation, he has "no idea" what to do.

He too would like to see some form of financial compensation from Mirvac.

"We had a lot of money invested, we'll also get some insurance money, but the government will take a chunk of that [in tax]," Mr Griffin said.

Mr Noble has been approached for comment.

Retailers supported, developer says

Ms Wells and Ms Linard were schedule to meet Mirvac executives on Tuesday to continue their advocacy on behalf of Toombul retailers, but that meeting was cancelled at short notice.

Both politicians called for Mirvac to engage with retailers.

"Mirvac needs to consult with Toombul tenants and our local community in good faith," Ms Linard said.

"I understand it is a complicated situation, but it is unacceptable that tenants had to find out through the media that their leases had been cancelled.

"These tenants have been trying to talk to Mirvac for months to discuss their situation, but their calls have gone unanswered.

"The local federal Member Anika Wells and I organised a meeting with Mirvac to relay the concerns of our community and ask them to engage with tenants, only for the company to pull out at the last minute.

"Again, this is unacceptable.

"I will continue to support our local community on this.

Late on June 9, Mirvac announced it would offer affected retailers a support package of three months' rent and said  a staff member's illness meant the meeting had to be postponed.

Mirvac CEO and managing director Susan Lloyd-Hurwitz said she would also personally meet with each retailer "over the coming days".

"These meetings are being arranged now," she said.

The package would be in addition to other measures Mirvac had taken including waiving all debts incurred during COVID and up until the flood for all tenants; completing the complex and challenging de-fit of specialty tenancies in the centre at no cost to retailers and working closely with retailers regarding the removal of their fit-out and stock; promoting the new locations of the retailers and connecting others with organisations which have space available.

Ms Lloyd-Hurwitz said Mirvac provided some storage free of charge for retailers and assisted with creating designs for new fit-outs for retailers at their new location.

Mirvac said individual insurance cover was a matter for each tenant and staff were "assessing the future of the site, which will include retail services for the local community".

Floods a 'new normal'

University of Queensland economics professor John Quiggin said any rebuild of the Toombul site would have to ensure it was flood-proof in order for insurers to offer affordable policies.

"Certainly I think after 2011 it was reasonable to say we didn't do a great job with flood management, and we thought if we do things a bit differently next time it won't be so bad and in some respects that was true," he said.

"But we have to assume that repeated floods are a new normal and insurers aren't a charity.

An Insurance Council of Australia spokesperson said insurers defined flooding as "the covering of normally dry land by water that has escaped or been released from the normal confines of:  any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal, or dam".

The spokesperson said flood cover was not standard in commercial products.

"Most insurers who allow policyholders to opt out of flood still cover storm damage, which is why a hydrologist's report is important to determine the cause of the damage," they said.

"Some insurers will not cover storm if flood is not also covered.

"Insurance prices risk, and that means that for those in flood-prone locations, particularly small businesses, flood cover can be costly.

"That is why the Insurance Council has called on all Australian governments to do more to protect homes, businesses, and communities from the impacts of extreme weather.