Australia Commercial Property Market Size, Share & Forecast Report 2025-2033

Market Overview

The Australia commercial property market was valued at USD 33.0 Billion in 2024 and is projected to reach USD 78.5 Billion by 2033. During the forecast period spanning from 2025 to 2033, the market is expected to grow at a compound annual growth rate (CAGR) of 9.3%. This growth is supported by factors including strong economic expansion, population growth, urbanization, foreign investment, technological advances, and infrastructure development.

How AI Is Reshaping the Future of Australia's Commercial Property Market:

• AI-driven property management systems enable more efficient building operations, reducing costs and enhancing tenant satisfaction.
• Government infrastructure projects integrate AI-powered smart city solutions to optimize utilities and transportation in commercial zones.
• Companies deploy AI for predictive analytics in commercial real estate investment decisions, improving risk assessment and returns.
• AI enhances demand forecasting for logistics and industrial properties, supporting the growth of automated warehouses and cold storage facilities.
• Real estate platforms use AI-based virtual tours and tenant matchmaking, accelerating leasing processes and occupancy rates.
• AI integration with sustainability initiatives, such as energy management systems, aligns with the market’s focus on green certifications.

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Market Growth Factors

One of the primary drivers of growth in the Australia commercial property market is infrastructure development. Major cities like Sydney, Melbourne, and Brisbane continue to expand with population growth and economic diversification, fueling increased demand for office spaces, retail outlets, and logistics centers. Government-funded projects such as the Western Sydney Airport and the Aerotropolis have significantly increased demand for commercial properties, especially within logistics, aviation support, and retail sectors. These infrastructure improvements unlock underutilized land and generate new investment opportunities, particularly evident in regions like Perth and Adelaide where targeted revitalization and growth programs are in place.

The strong demand in logistics and industrial sectors is another vital growth factor. The surge in online retail and evolving international supply chain requirements are driving demand for warehouses and distribution hubs near key transportation nodes such as Melbourne’s west suburbs, Brisbane’s Trade Coast, and Sydney’s outer western precinct. Automation technologies, cold storage, and last-mile delivery centers are transforming these facilities. Government backing for regional industrial parks and smart logistics hubs reinforces this trend, ensuring sustained expansion in these sectors, which remain critical to supporting the country’s trade and e-commerce ecosystem.

Australia’s sound economic climate and institutional investment landscape support the commercial property market’s progress. The country’s stable political environment, robust legal and regulatory framework, and high-ranking financial systems attract large institutional investors including superannuation funds and international real estate trusts. High-end office properties in CBD areas like Sydney, Melbourne, and Brisbane benefit from these investments, with a growing emphasis on green building certifications and sustainability enhancing market appeal. In public sector hubs such as Canberra and Hobart, knowledge-intensive industries further bolster office demand, establishing a resilient and confident environment for long-term commercial property growth.

Market Segmentation

Type Insights:

• Office
• Retail
• Industrial and Logistics
• Hospitality
• Others

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Key Players

• Lendlease
• Daiwa House Australia
• Costco

Recent Development & News

• July 2025: Lendlease and Daiwa House Australia announced a partnership to develop a 45-storey build-to-rent apartment tower in Melbourne Quarter comprising 797 residences ranging from studios to three-bedroom apartments, offering a secure rental alternative.
• October 2025: Costco declared plans to expand its footprint in Australia by establishing multiple new warehouses, including acquiring a site in Ardeer, Melbourne’s western suburbs, where it has submitted a planning application for a new warehouse and service station.
• August 2025: Government initiatives enhancing infrastructure and zoning amendments in regional cities like Ballarat and Toowoomba have accelerated commercial property development, fostering private sector investment and improving connectivity through road and rail projects.

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