Commercial property investors are wrapping up 2025 and preparing for 2026 with a mix of optimism and caution. After several years of inflation shocks and slower decision cycles, the market has begun to settle into a new rhythm. Opportunities still exist, although they sit behind a more detailed assessment and a clear understanding of how demand is shifting.
Whether you are expanding a portfolio or exploring commercial property investment in 2025 and 2026 for the first time, these two years will reward investors who combine discipline with strategy.
Here are the five insights that will shape commercial property investment in 2025 and 2026:
1. Capital is returning in selective ways
Confidence is improving, although investors continue to focus on assets with durable demand. Industrial and essential service retail remain popular. Healthcare and childcare also continue to attract attention due to structural needs across a growing population.
Office assets follow a different pattern. Prime buildings with strong amenities and transport access are stabilising, while secondary stock still faces leasing pressure without improvements.
As borrowing conditions ease through late 2025 and into 2026, sentiment may strengthen. Income security will still be a key driver of acquisition decisions. This is where a skilled property buyer’s agent can help investors filter opportunities and avoid assets that look attractive on the surface but lack long-term fundamentals.
2. Supply constraints will influence rental performance
The national pipeline of commercial property is tightening. Feasibility remains a challenge for new developments, as construction costs take time to settle and lenders apply stricter criteria. Many projects are being delayed or redesigned to improve economic viability.
Industrial supply is expected to remain limited across several capital cities. The same trend is emerging in healthcare, neighbourhood retail and education assets where demand is tied closely to population growth.
For investors planning commercial property investment in 2026, constrained supply may create stronger rental conditions in precincts where modern stock is difficult to find. Location and specification will be more influential than before.
3. Occupier behaviour is changing quickly
Tenant expectations are shifting in ways that influence asset performance. Office occupiers continue to refine their space needs and place more value on layout efficiency, natural light and workplace amenity. This favours well-located buildings that support hybrid work rather than large older offices that require major upgrades.
Industrial tenants are prioritising operational efficiency, which comes in the form of improved power capacity, higher warehouse clearance and more efficient loading layouts. Operators across logistics, manufacturing and e-commerce are planning ahead to secure sites with reliable access and strong sustainability features.
Retail continues to evolve. Neighbourhood centres and service-based operators remain stable due to consistent demand, while discretionary formats move through a slower period.
Understanding these movements helps investors identify which assets are positioned to keep their appeal over the next decade, rather than relying on rental growth alone.
4. Detailed due diligence will matter more than timing
The next cycle is unlikely to reward investors who rely on momentum. Instead, performance will depend on how well assets are assessed, purchased and managed. Important considerations include:
- Lease structure and strength of tenant covenant
- Base building condition and upcoming capital requirements
- Rent review mechanisms and vacancy risk
- Location-specific drivers that influence renewal prospects
- Acquisition costs, which can be modelled early with a stamp duty calculator
- How the asset will be supported through ongoing commercial property management
Lenders are examining these factors in more detail than in previous years. Tenants are doing the same. Investors who understand the depth of these variables will be better placed to make decisions that hold up in changing market conditions.
5. Value-add strategies and emerging locations will offer new opportunities
As pricing resets across parts of the market, several openings are emerging. Melbourne is moving through its repricing cycle faster than other capitals. Selected regional cities with expanding populations or strong infrastructure pipelines are attracting new investor interest.
Assets with sound underlying land value or refurbishment potential may appeal to investors seeking repositioning or improvement opportunities, depending on execution and market conditions.
Some investors are widening their search beyond traditional metropolitan markets to find value where competition is lower and yields are more appealing. This approach may suit investors who are open to active management and who want to position themselves ahead of the next development cycle.
Asset types to watch across 2025 and 2026
Investors considering commercial property investment in 2025 and 2026 may find the following sectors worth monitoring. These asset types link closely to population growth, tenant demand and supply dynamics:
Industrial and logistics
- Supported by e-commerce activity and ongoing business expansion
- Strong demand for modern warehousing and functional layouts
Healthcare and medical
- Consistent tenant demand from GP clinics, dental operators and allied health
- Community need supports long-term occupancy
Neighbourhood retail
- Centres anchored by supermarkets and daily needs retailers
- Often more resilient during softer economic periods
Mixed-use service hubs
- Precincts in growth corridors with strong infrastructure pipelines
- Appeal to essential service tenants and local operators
Specialised industrial
- Power-intensive or technically driven facilities
- Often benefit from tenant-led design input during the pre-lease stage
The role of professional support in a higher stakes environment
As commercial property investment in 2025 and 2026 becomes more selective, specialist guidance can help investors make clearer and more informed decisions. Key forms of support include:
Property buyers agent
- Helps identify suitable assets
- Assesses leasing strength and tenant quality
- Supports negotiation and due diligence
Financial preparation
- Early modelling of costs
- Use of tools such as a stamp duty calculator to clarify total outlay
Commercial property management
- Supports tenant retention and operational compliance
- Helps protect asset performance over the long term
Positioning for the next cycle
The commercial market in 2025 and 2026 is stable, but not uniform. Investors who understand how capital, supply, tenant behaviour and urban growth patterns intersect will be able to identify opportunities others overlook.
A disciplined approach to research, asset selection and risk management will matter just as much as location. Many of the strongest outcomes over the next two years will come from investors who act with clarity rather than speed.
Speak with Costi Cohen for further market insights and acquisition guidance
If you are planning your next commercial acquisition and want support in identifying high conviction assets or navigating a selective market, Costi Cohen can guide you through each stage with clarity and strategy. Speaking with the team early can help position your portfolio ahead of the next cycle.
Disclaimer: The information in this article is provided for general informational purposes only and does not constitute financial, investment or property advice. Readers should seek independent professional, legal and taxation advice before making investment decisions or acting on yield, duty or return calculations. Market conditions and forecasts may change without notice.