Parramatta Blog

After a rocky couple of years, the commercial property market is turning the corner and the road ahead looks golden. With price drops slowing to a halt and interest rates stabilising, momentum is finally building.

2025 is shaping up to be a year of serious opportunity for savvy investors and bold movers.

Retail Market

Retail was the undisputed champion of 2024, leading the charge as the most traded asset class in commercial property. Demand for regional and sub-regional shopping centres soared, driven by solid income growth and the exciting potential for mixed-use developments. With supply tightening across the country, retail is becoming the must-have on every investor’s radar. Rents are climbing, and with Australia’s booming population, the push to increase the density of shopping centres is only gaining steam. Retail has reinvented itself since the chaos of 2020, streamlined, efficient, and ready for another growth wave. Expect 2025 to bring even more momentum, fuelled by one major factor: a looming undersupply of retail floorspace that’s already making waves.

Office Market

It’s no secret the office sector copped it hard in recent years. Higher interest rates, investor jitters, and the work-from-home revolution all played a part. But the tide is turning. Values are aligning, borrowing costs are improving, and prime assets are starting to shine. The outlook for rent growth in top-tier buildings especially in Sydney is looking solid. And if history’s any guide, what starts in Sydney ripples across the country.

Industrial Market

The industrial and logistics sector has been riding a strong wave, and there’s no sign of it slowing down. Rental growth’s been impressive, and even though it may cool slightly in 2025, core fundamentals remain rock solid.

Vacancy rates are tight, rents have rebased, and the return of core capital is on the cards. Investors are zoning in on high-quality, strategically located infill assets especially those with modern specs and sustainable design baked in. With east coast markets leading the way, especially in land-constrained areas, rental growth of 8-10% is still very much on the table.

Bottom line? The market’s waking up and those who move fast in 2025 are going to be the ones laughing all the way to the bank.

Don’t miss out! Contact Jayden Ayoub 0438 635 477 to begin your property search!