Australia Commercial Real Estate Market Estimated at USD 55.46 Billion by 2030; Growth Led by Retail Stability and Industrial Demand

Mordor Intelligence has published a new report on the Australia Commercial Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

The Australia Commercial Real Estate Market size is estimated at USD 36.95 billion in 2025, and is expected to reach USD 55.46 billion by 2030, at a CAGR of 8.46%. This expansion is driven by a combination of factor,s including the resilience of retail property, the ongoing strength of the logistics sector, renewed interest in high-performing office locations, and an increase in demand for data centres.

The Australia commercial real estate market continues to attract investor attention as it navigates a post-pandemic recovery phase marked by changing space requirements, evolving consumer habits, and heightened expectations around asset quality and sustainability. Despite some headwinds, such as elevated vacancy in secondary office assets and concerns around taxation, confidence is returning as the market prepares for a more active investment cycle in 2025.

Report Overview: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-australia?utm_source=prfree

Key Trends Driving the Market

Retail Sector Rebounds

After a period of uncertainty, Australia's retail property sector has regained its footing. Neighbourhood centres and essential services retail have been key contributors to this turnaround. These centres, often anchored by supermarkets and daily needs outlets, are benefiting from stable foot traffic and reliable tenancy. Physical stores are once again outpacing online sales in terms of transaction share, climbing above historical averages.

Retail assets are also being repositioned as mixed-use destinations that offer entertainment and community engagement opportunities, increasing their relevance in suburban and metro settings. This trend has led to a more diversified and sustainable income stream for landlords, particularly in high-footfall areas.

Industrial and Logistics Remain Strong

Industrial real estate continues to see robust demand. This includes warehousing, fulfilment centres, and logistics hubs-especially those located near ports and population centres. The ongoing growth in e-commerce and the need for efficient last-mile delivery solutions are fueling demand for modern, well-located industrial facilities.

Limited availability of developable industrial land is contributing to higher rents and lower vacancy. As developers compete for prime locations, the industrial sector is becoming increasingly attractive for investors looking for stable long-term income.

Growing Interest in Data Centres

Australia is becoming a major hub for data centre investment, largely driven by increased digital activity and demand for cloud services. Developers and landlords are allocating more resources to accommodate global tech firms and hyperscale cloud providers. Data centres, with their long lease terms and infrastructure intensity, are proving to be a strategic focus area, especially for groups with experience in industrial real estate.

This emerging trend is not only expanding the definition of industrial assets but also drawing new types of tenants into the commercial property sector.

Investor Outlook and Policy Impact

Market leaders anticipate a stronger investment environment in 2025, supported by expected interest rate cuts and improving economic conditions. Institutional capital is re-entering the market, with a focus on logistics, premium office assets, and high-performing retail locations.

However, concerns remain regarding foreign investment policies, particularly high state-based taxes that some believe are limiting global investor participation. Additionally, a tight labour market and rising construction costs continue to influence development timelines and feasibility.

Explore Our Full Library of Real Estate and Construction Research Industry Reports: https://www.mordorintelligence.com/market-analysis/real-estate-and-construction?utm_source=prfree

Key Players in the Market

Several companies are leading the way in Australia's commercial property sector through strategic developments and asset management:

Lendlease Corporation has remained active in office precincts and mixed-use projects, focusing on well-located assets with long-term growth potential.

Scentre Group Limited, which operates Westfield shopping centres, continues to innovate in the retail space, focusing on consumer experience and integrated services.

Mirvac holds a diverse portfolio and is well-positioned to benefit from cyclical shifts in interest rates and asset pricing.

Pact Construction

Multiplex Constructions Pty Ltd.

These players are helping to shape the trajectory of the market, with each adopting tailored strategies in line with asset type, location, and tenant demand.

Explore more about Australia Commercial Real Estate Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-australia/companies?utm_source=prfree

Conclusion

Australia's commercial real estate market is in a phase of steady recovery and selective expansion. With the market currently valued at over USD 34 billion and forecasted to exceed USD 51 billion by 2029, there is a clear path for growth, particularly in industrial, retail, and prime office segments.

Challenges such as office oversupply and policy-related investment barriers remain, but the market fundamentals are improving. Companies are making targeted investments, repositioning underperforming assets, and preparing for increased activity as interest rates adjust and global capital flows resume.

As investor sentiment improves and occupiers seek better-quality spaces, Australia's commercial real estate market is positioned for a more active and diverse future.

For more market analysis, visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-australia?utm_source=prfree

Industry Related Reports

Egypt Commercial Real Estate Market: Egypt Commercial Real Estate Market is Segmented by Type (offices, Retail, Industrial and Logistics, Hospitality, and Multi-Family) and Key Cities (Cairo, Alexandria, Giza, Port Said, and the Rest of Egypt).

Get more Insights: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-egypt?utm_source=prfree

Israel Commercial Real Estate Market: Israel Commercial Real Estate Market is Segmented by Property Type (Domestic and International).

Get more Insights: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-israel?utm_source=prfree

Oman Commercial Real Estate Market: Oman Commercial Real Estate Market is Segmented by Type (Offices, Retail, Industrial, Logistics, Multi-Family, and Hospitality) and Key Cities (Muscat, Sohar, and Dhofar).

Get more Insights: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-oman?utm_source=prfree

Turkey Commercial Real Estate Market: Turkey Commercial Real Estate Market is segmented by type (office, retail, industrial, logistics, hospitality, and multi-family) and key cities (Istanbul, Bursa and Antalya).

Get more Insights: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-turkey?utm_source=prfree

For any inquiries or to access the full report, please contact:
media@mordorintelligence.com
https://www.mordorintelligence.com/

Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli, Hyderabad, Telangana - 500032, India.

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

This release was published on openPR.