Commercial Property Market Update Q4 2026

The market continues to feel the effects of macroeconomic pressures, including high oil prices, rising interest rates and sustained inflation. The property market in particular has slowed, with buyers taking a more conservative approach and allowing extra time to make decisions. Vendors are also experiencing this, as they adjust their expectations in response to market feedback and weigh up the timing of their sale. 

This isn't new territory, and history gives us some useful insight into what may lie ahead. Commercial property assets have traditionally responded to rising interest rates more slowly, particularly where rent increases are tied to CPI or fixed percentage escalations. That provides a degree of security for owners, and it provides businesses with an expectation of when rental increases will take place to enable them to plan accordingly. 

Higher inflation also tends to push investors towards higher yields, which can reset asset pricing and create genuine opportunities for those ready to act. While these conditions usually bring a greater level of caution, buyers who are in a position to move now often face less competition. This can also work well for vendors by connecting them with a decisive buyer. 

It's also important to look at local economic indicators during these periods. Across the regional markets we operate in, several signals point to long-term growth. The Regional Movers Index shows 11.7% of all internal migration is from capital cities to regional areas, which supports continued growth in regional markets. 

Lake Macquarie recorded a 13.5% increase in quarterly net internal migration, moving from fifth to third place since the March Regional Movers Index earlier this year. Maitland and Cessnock also remain among the most popular destinations for regional movers, placing second and third for the largest net inflows from regional moves in the June quarter. Population growth is a key driver of commercial property, so these results are an encouraging sign for these markets. Additionally, the state government's recent announcement confirming Teralba as the preferred location for the new state-owned facility for train manufacturing, and Broadmeadow as the alternative option, provides further security for the region's manufacturing and industrial future. Jobs, investment and future expansion opportunities for the site are all positive indicators of a strong future for the Hunter region. 

Despite current market conditions pushing purchasers to take longer to complete due diligence we are also seeing more certainty from those who enquire on properties. Market conditions such as these offers a wealth of opportunity, often with lower levels of competition, providing a strong environment for those ready to invest. 

Port Macquarie continues to build momentum across both the industrial and allied health sectors, echoing what we are seeing in the Hunter Region. With more than four industrial properties now sold at one of our new-to-market listings in Thrumster, the familiar pattern of strong industrial sales is holding true in Port Macquarie too. 

Property operates in every market condition, and because markets are cyclical, it remains a sound investment through every cycle.  

Explore our latest opportunities in the Commercial Collection and speak with the team about what may be available for you today.