Australia’s commercial property market in 2025 is showing renewed momentum, with investors seeking strategies that balance risk, resilience, and long-term growth. Drawing on the latest industry commentary and Commercial Property Guide’s own findings, here are the top investment strategies for this year, supported by expert voices.
1. Target High-Growth Sectors and Locations
The first half of 2025 has seen a robust recovery in commercial property, particularly in prime industrial and logistics assets in Sydney and Brisbane. Knight Frank’s chief economist Ben Burston notes, “The commercial property market is now in a good position for investors as the fundamentals for long-term growth remain strong.” This is driven by booming demand, increased competition for quality assets, and a post-devaluation cycle that has insulated the market from further downside risk. Commercial Property Guide’s analysis confirms that industrial and logistics remain the standouts, with yields tightening as investor appetite intensifies.
2. Value-Add and Active Asset Management
Industry experts like Alberto from Propertybuyer highlight that value-add opportunities are key in 2025. Properties with short leases or below-market rents can be acquired at favorable prices and repositioned for higher returns. “This strategy is particularly useful for experienced property investors who have a higher risk tolerance and adequate financial buffers,” Alberto explains. Commercial Property Guide’s data shows that while industrial rents have already risen, select office and retail assets with repositioning potential can also deliver strong income growth if chosen carefully and supported by local demand fundamentals.
3. Diversify Across Asset Classes
Australia’s commercial property market offers strong potential in data centers, industrial hubs, retail spaces, multifamily residences, and regional markets. The digital transformation is fueling growth in data centers, while infrastructure projects and demographic shifts are making regional markets increasingly attractive. Commercial Property Guide research highlights that diversification across these asset types and geographies can provide stability, attractive rental yields, and capital growth.
4. Leverage Market Cycles and Interest Rate Trends
With the Reserve Bank widely expected to cut interest rates in 2025, borrowing costs are likely to fall, lowering the hurdle for new acquisitions and creating opportunities for value-seeking investors. Scott O’Neill, founder of Rethink Investing, stresses the importance of holding through periods of adjustment, as falling rates could trigger a “sugar hit” to property values. Commercial Property Guide recommends monitoring rate movements closely and aligning acquisition timing to benefit from cyclical upswings.
5. Capitalise on Retail and Population Growth
Retail property is seeing renewed interest, particularly in neighbourhood and large-format centres, as strong population growth collides with a shortage of new retail space. Commercial Property Guide’s findings show that investors are targeting retail assets in growth corridors, where demand is expected to outpace new supply, supporting rental growth and long-term value.
6. Adaptability and Strategic Planning
Industry leaders consistently emphasise adaptability and strategic planning. The market’s resilience in the face of global volatility makes commercial property an attractive allocation for investors seeking to hedge against risks in equities and bonds. Commercial Property Guide’s research underscores the importance of staying informed, conducting thorough due diligence, and seeking specialist advice to navigate a dynamic landscape.