The Australia Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail and More), by Business Model (Rental and Sales), by End User (Individuals / Households, Corporates & SMEs and More) and by Region (New South Wales, Victoria, Queensland and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

In June 2025, commercial property sale asking prices were forecasted to witness a decrease of around **** percent. Within the given time period, the largest growth in commercial property asking prices was recorded in June 2021.

Australian commercial real estate agencies have faced revenue challenges due to mortgage affordability and business confidence shifts. In 2020 and 2021, government stimulus measures and historically low interest rates improved mortgage affordability. This led to increased investments in sectors like industrial and logistics, boosting demand for agents. However, office property transactions declined because of pandemic restrictions. Since 2021, higher interest rates and less government support have decreased mortgage affordability and business confidence, leading companies to delay or reduce property investments. Additionally, the ongoing shift to remote work has increased office vacancies, reducing demand and pressuring agencies to accept lower profit margins. Overall, industry revenue has dropped at an annualised 2.5% over the past five years and is expected to total $1.10 billion in 2024-25, when revenue will drop by an estimated 4.6%. The Australian commercial real estate industry is undergoing significant transformations due to market dynamics and increased consolidation among major firms. Companies like CBRE, JLL and Colliers International are expanding aggressively through acquisitions—enhancing their service offerings and solidifying market dominance. This consolidation intensifies competition and creates substantial barriers for smaller agencies, pressuring them to strengthen their brand presence or consider mergers to remain viable. Additionally, the ecommerce boom - accelerated by the COVID-19 pandemic - has sharply increased demand for industrial properties like warehouses near urban centres. This surge attracts investors seeking stable returns and escalates competition for limited industrial space. Despite a projected decline in the cash rate that is expected to boost spending and business confidence, Australia's commercial real estate sector is anticipated to face challenges from hybrid work models. Businesses likely to downsize or choose flexible leases will prompt agencies to offer flexible workspaces or repurpose properties. Meanwhile, ecommerce growth drives demand in the industrial property market, supporting industry revenue. Climate concerns and upcoming regulations are increasing demand for sustainable properties; the scarcity of net-zero energy offices allows agencies to market them at premium prices to ESG-focused tenants. This combination of factors is set to culminate in annualised growth of 1.5% over the five years through 2029-30 to $1.19 billion.

The Andrianakos Property Group's investment in Northland Shopping Centre (50 percent stake) in Preston, Victoria, led Australia's commercial property investment charts in the first quarter of 2025, with a transaction value of *** million Australian dollars. Investment in Cockburn Gateway Shopping City (50 percent stake) in Perth, Western Australia by retail property group GPT followed in the same quarter, with a transaction value of around *** million Australian dollars.

The Australian commercial real estate market, valued at $34.07 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.46% from 2025 to 2033. This expansion is fueled by several key drivers. Strong population growth in major cities like Sydney, Melbourne, and Brisbane is increasing demand for office, retail, and industrial spaces. Furthermore, the burgeoning e-commerce sector is driving significant growth in the logistics and warehousing segments. Government infrastructure investments and a generally positive economic outlook also contribute to this positive market trajectory. While rising interest rates and potential economic slowdown pose some constraints, the long-term fundamentals of the Australian economy and the ongoing need for modern commercial spaces are expected to mitigate these risks. The market is segmented by property type (office, retail, industrial & logistics, hospitality, and others) and by city (Sydney, Melbourne, Brisbane, Adelaide, Canberra, Perth), reflecting diverse investment opportunities and regional variations in growth rates. Sydney and Melbourne are expected to remain dominant, given their established business ecosystems and high population densities. However, other cities such as Brisbane are witnessing significant growth driven by infrastructure development and population influx. The key players in this dynamic market, including Lendlease Corporation, Scentre Group Limited, and Mirvac, are well-positioned to capitalize on these growth opportunities. The segmentation of the market reveals significant potential within specific sectors. The industrial and logistics sector, driven by the e-commerce boom and supply chain optimization efforts, is anticipated to experience particularly strong growth. Similarly, the office sector, while facing some challenges from remote work trends, remains resilient due to the ongoing need for collaborative workspaces and central business district locations. The retail sector will continue to adapt to evolving consumer preferences, with a focus on experience-driven retail and omnichannel strategies. Careful consideration of factors like interest rate fluctuations, construction costs, and regulatory changes will be crucial for investors navigating the complexities of this dynamic market. The forecast period of 2025-2033 offers a promising outlook for sustained growth within this sector. Recent developments include: • October 2023: Costco is planning a major expansion in Australia, with several new warehouses under construction and several prime locations being considered for future locations. Costco currently operates 15 warehouses in Australia, with plans to expand to 20 within the next five years, based on current stores and potential locations., • July 2023: A 45-storey BTR tower will be developed by Lendlease and Japanese developer Daiwa House, completing the final phase of Lendlease's Melbourne Quarter project and its second Build-to-Rent (BTR) project in Australia. The USD 650 million deal, similar to Lend lease's first 443-unit BTR project under construction in the 5.5 hectares of mixed-use space at Brisbane Showground, is a stand-alone investment and is separate from the company's ongoing efforts to build a wider BTR partnership, which will include several assets.. Key drivers for this market are: Rapid Urbanization, Government Initiatives Actively promoting the Construction Activities. Potential restraints include: Rapid Urbanization, Government Initiatives Actively promoting the Construction Activities. Notable trends are: Retail real estate is expected to drive the market.

The need for office space in Australia’s expanding cities has drawn investors to commercial property, with many wanting to cash-in on strong capital growth rates in the office segment. In the first quarter of 2021, the office yield rate in the central business district of Perth, Australia was around *** percent. This was the highest rate across all states in Australia and the second highest yield rate was in Perth, Australia.

What is office yield?

In terms of commercial property, the yield represents the expected return on investment on a property. For investors, this is an important value as it indicates future income on an investment. Yield can be based on a property’s market value, annual income, and running costs. Capital growth, however, is not included in the calculation. The office yield was the lowest in Sydney. The vacancy rate in the CBD office market was also the lowest in Sydney compared to other major Australian cities.

Growth in the office segment

In 2019, Australia showed strong growth as a destination market for cross-border commercial real estate investment inflows in Asia Pacific. In the same year, transaction volumes reached a high in the office segment, with this segment also accounting for the highest share of foreign investment in commercial property. In addition, megadeals (greater than *** million Australian dollars) reached a peak, solidifying the importance of the office segment in the commercial real estate industry in the country.

Market Size statistics on the Commercial Property Management industry in Australia

Over the past two years, industrial property operators have suffered from reduced total merchandise imports and exports. However, expansions in business inventories have helped the industry and growth in online shopping popularity has propped up demand for industrial properties, particularly warehouses and logistics buildings. Forecasts estimate industry revenue to climb at an annualised 23.2% for the five years through 2024-25 to $19.3 billion. Notably, this growth rate is relative to a low base year in 2019-20. This year saw negotiated lease agreements meant to accommodate the pandemic-era economic landscape. More recently, climbing interest rates have justified higher rental prices, which have helped swell revenue compared to the 2019-20 financial year. More recently, the industry has fallen in revenue, recording a 3.9% slump in 2024-25. The effect of mining demand has been twofold on the Industrial and Other Property Operators industry. As overall mining demand has decreased, in part because of a slowdown in construction in China, the number of storage facilities that mining companies need has reduced, while simultaneously, many of the larger miners have sought to secure their storage capabilities by building their own warehouses, trading rental costs for construction costs. Combating this has been an improving business confidence index, which bodes well for the industry as more companies potentially look to expand their operations, requiring them to lease more property and driving revenue up for the industry. Current profit margins are estimated at 31.2%, a healthy figure that should remain relatively stable for the next five years. Over this same period, the industry will face some troubles, with a rising bond rate redirecting investments away from property and indicating the possibility of higher mortgage rates. These raised costs will see consolidation in the industry as the more significant industry players with greater cash reserves or access to capital can exploit reduced competition for new properties up for sale. Forecasts estimate revenue to swell at an annualised 0.2% for the five years through 2029-30 to sit at $19.5 billion.

In 2023, the Australia Real Estate Market reached a value of USD 385.3 million, and it is projected to surge to USD 736.7 million by 2030.

Australia PPI: PB: PS: Commercial Property Operator data was reported at 143.800 1998-1999=100 in Sep 2009. This records a decrease from the previous number of 148.100 1998-1999=100 for Jun 2009. Australia PPI: PB: PS: Commercial Property Operator data is updated quarterly, averaging 111.600 1998-1999=100 from Mar 1996 (Median) to Sep 2009, with 55 observations. The data reached an all-time high of 154.700 1998-1999=100 in Dec 2008 and a record low of 89.700 1998-1999=100 in Mar 1996. Australia PPI: PB: PS: Commercial Property Operator data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I035: Producer Price Index: 1998-99=100: ANZSIC 1993: Services Industries.

In June 2025, commercial property rent asking prices were forecasted to increase by around **** percent. Within the given time period, the largest growth in commercial property rent prices was recorded in July 2022, with an increase of around **** percent.

Comprehensive dataset of 1,863 Commercial real estate agencies in Australia as of June, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

Employment statistics on the Commercial Property Management industry in Australia

In June 2025, retail property rent asking prices were forecasted to increase by around **** percent. The Commercial Property Asking Price Index tracks the monthly change in vendor sentiment towards commercial rental properties advertised in Australia.

As of July 2022, about 40 percent of investment in the commercial real estate in Australia went to the office sector. That same year, the industrial sector received about 18 percent of the commercial real estate investment in the nation.

Australia Commercial Property Lending: ADIs: Limits: Other Residential data was reported at 56,029.300 AUD mn in Dec 2024. This records an increase from the previous number of 54,925.200 AUD mn for Sep 2024. Australia Commercial Property Lending: ADIs: Limits: Other Residential data is updated quarterly, averaging 43,719.100 AUD mn from Mar 2004 (Median) to Dec 2024, with 75 observations. The data reached an all-time high of 56,029.300 AUD mn in Dec 2024 and a record low of 23,926.900 AUD mn in Mar 2004. Australia Commercial Property Lending: ADIs: Limits: Other Residential data remains active status in CEIC and is reported by Australian Prudential Regulation Authority. The data is categorized under Global Database’s Australia – Table AU.KB026: Commercial Property Lending.

Commercial Property Lending: ADIs: No of Entities data was reported at 126.000 Unit in Dec 2024. This stayed constant from the previous number of 126.000 Unit for Sep 2024. Commercial Property Lending: ADIs: No of Entities data is updated quarterly, averaging 151.000 Unit from Mar 2004 (Median) to Dec 2024, with 75 observations. The data reached an all-time high of 243.000 Unit in Mar 2004 and a record low of 126.000 Unit in Dec 2024. Commercial Property Lending: ADIs: No of Entities data remains active status in CEIC and is reported by Australian Prudential Regulation Authority. The data is categorized under Global Database’s Australia – Table AU.KB026: Commercial Property Lending.

The Australia commercial real estate market size reached USD 33.88 Billion in 2024. The market is expected to grow at a CAGR of 7.90% between 2025 and 2034, reaching almost USD 72.47 Billion by 2034.

Commercial Property Lending: ADIs: Non Performing: ow in Australia data was reported at 2,529.700 AUD mn in Dec 2024. This records a decrease from the previous number of 3,349.400 AUD mn for Sep 2024. Commercial Property Lending: ADIs: Non Performing: ow in Australia data is updated quarterly, averaging 2,215.800 AUD mn from Mar 2022 (Median) to Dec 2024, with 12 observations. The data reached an all-time high of 3,349.400 AUD mn in Sep 2024 and a record low of 1,527.300 AUD mn in Sep 2022. Commercial Property Lending: ADIs: Non Performing: ow in Australia data remains active status in CEIC and is reported by Australian Prudential Regulation Authority. The data is categorized under Global Database’s Australia – Table AU.KB026: Commercial Property Lending.

Number of Businesses statistics on the Commercial Real Estate Agents industry in Australia