Market Overview | Commercial Collection Q1 2025

The latest edition of the Commercial Collection highlights the region’s leading commercial and industrial property opportunities, showcasing a resilient market that continues to evolve despite recent economic challenges.

Market activity has remained strong, with an increase in transactions creating new opportunities for both seasoned investors and those entering the market for the first time. The recent reduction in the cash rate is expected to have a positive impact on the commercial property sector in the coming months. While lending institutions have maintained rigorous risk assessments, these rate cuts may enhance competition among second-tier lenders, improving access to finance for investors and businesses alike.

This shift in the lending environment is likely to drive an influx of private investors who recognise the value of commercial property investment. Over the past 12 to 18 months, Sydney-based investors have increasingly turned their attention to the Hunter region, drawn by its comparative affordability and growth potential. This trend is expected to continue as demand for high-quality assets remains strong.

The industrial property sector continues to demonstrate strength, driven by a persistent supply-demand imbalance and a limited pipeline of industrial land available for development. However, alternative opportunities are emerging, including redevelopment potential in second- and third-tier industrial assets, as well as infill developments designed for more bespoke uses.

In the commercial office market, larger businesses remain focused on encouraging employees to return to the office, influencing demand for quality office space. Newcastle’s office market is experiencing positive momentum, with new developments reaching completion this year brining more A grade stock to the market. Meanwhile, the availability of B- and C-grade office stock continues to grow, with incentives likely to persist unless significant upgrades are made to enhance their appeal.

For more information on our current portfolio or to discuss your commercial property requirements, contact the team at Commercial Collective today.