Australian Commercial Real Estate Trends to Watch in 2025
Commercial Real Estate in Australia is set for an interesting year – whether you’re a small business owner, an investor, a property developer, or just interested in the economy - we’ve put together an overview of the key trends forecasted to shape the year ahead for Commercial property. What will be making a difference to the commercial market this year?
Australian Commercial Real Estate Trends to Watch in 2025
Commercial Real Estate in Australia is set for an interesting year – whether you’re a small business owner, an investor, a property developer, or just interested in the economy - we’ve put together an overview of the key trends forecasted to shape the year ahead for Commercial property.
What will be making a difference to the commercial market this year?
How will changes in Interest Rates impact the Commercial Real Estate market?
Higher borrowing costs continue to influence investment decisions across commercial markets, especially in retail and office sectors. If interest rates start to lower this year, as predicted, it will improve access to funding, in turn fuelling increased demand across the market.
How will economic and consumer confidence in Australia affect the commercial market?
Economic trends and global uncertainties will play a significant role in retail and office demand. As the impact of natural disasters, political conflicts and changes in leadership play out in other countries it can directly impact economic and consumer confidence in our market. These situations have the capacity to generate a rise in tourism and events nationally which will promote retail spending and intensify commercial business' demand for property.
The impact of the next Australian Federal Election
As Australia approaches the upcoming federal election, discussions on immigration policies are likely to influence commercial property investor sentiment and market dynamics. As the population grows, demand for office spaces will increase, making investments in these properties more appealing. A larger population will also drive the need for more commercial facilities, such as retail spaces, shopping centres, and logistics hubs. For expert advice reach out to Belle Property Commercial.
E-commerce growth and commercial real estate.
Warehouses are the backbone of the e-commerce supply chain. The rapid rise of e-commerce, accelerated by the covid-era, has led to unprecedented demand for warehouse spaces for storing goods and logistics to support this growing sector.
How is Sustainability shaping Commercial Real Estate?
Sustainability is a growing focus in commercial real estate. Changes to business requirements are reshaping the office and industrial markets and as a result, more buildings are being designed with energy-efficient systems, solar panels and water-saving fixtures. These “green” buildings not only reduce the environmental impact, but they can also lead to lower utility costs for tenants.
Changes to urban spaces and mixed-use developments.
Many cities across Australia are being revitalised, with older buildings being transformed into vibrant mixed-use spaces that combine living, working, and recreational areas. These developments are designed for convenience and liveability, often featuring apartments, offices, and retail all in one place. For consumers, this means more accessible, engaging spaces to live, work and shop.
The rise of smart buildings
Technology is revolutionising commercial real estate with greater demand for smart buildings equipped with automated systems for lighting, temperature control, and security. These buildings are energy-efficient and offer a more comfortable, secure experience for tenants. For consumers, this means smarter, more sustainable spaces that are both environmentally friendly and more enjoyable to visit.
What to take away?
As interest rate movements, consumer confidence and a rise in e-commerce set to fuel greater demand across the commercial real estate market, the demand for the types of commercial properties themselves is also evolving to meet the market's changing needs. Federal election policies on immigration could further enhance investor sentiment and increase demand for commercial real estate.
Key trends such as population growth, the rise of green buildings, evolving urban spaces and the integration of smart technology will influence where you work, shop, and live. As businesses adapt to deliver more sustainable, convenient, and engaging spaces, 2025 promises to be an exciting time for the commercial real estate market.