Insights H1 2026
2 | Insights H1 2026 Welcome 03 At a Glance - Key Market Drivers 04 National Auction Event 06 New South Wales 08 Australian Capital Territory 26 Queensland 28 Victoria 36 Tasmania 38 South Australia 40 Western Australia 44 National & International Strength 46 Contents Disclaimer: Information contained herein has been gathered from sources we deem to be reliable however warrant no guarantees as to accuracy. Readers are encouraged to rely upon their own due diligence and enquiries. All rights reserved.
Insights H1 2026 | 3 As we gallop into the Year of the Horse, commercial property continues to be an outstanding long term asset for both investors and owner occupiers, however market conditions vary by sector and location. As in past editions of Commercial Insights, we find that at the start of 2026, industrial property continues to be the top performer. This reflects the ongoing growth of e-commerce, which is driving demand for warehouse space, coupled with a continuing shortage of land earmarked for new industrial estates. Significant government investment in infrastructure at both the state and federal level, is further supporting the industrial market, and investors are embracing industrial units as an affordable and low-maintenance way to diversify their portfolios. The office market continues to rebound as workers steadily return to formal workplace settings. Employers are increasingly aware of the need to provide attractive amenities and modern work environments to entice staff back to work – and break the mould of pandemicera work from home practices. The result is the emergence of a two-speed market, where new or recently renovated office assets are attracting plenty Welcome to our H1 2026 Insights Angus Raine Executive Chairman Raine & Horne Group of buyer and tenant interest, while older properties are more likely to be overlooked. We are pleased to report the retail property market is enjoying a resurgence across a number of locations. In particular, neighbourhood centres are thriving, especially those with non-discretionary outlets in areas experiencing strong population growth. More broadly, in a market characterised by tight supply, we believe commercial property owners have an exceptional opportunity to maximise the value of their asset on sale. To discover the selling – and buying, dynamics in your part of Australia, reach out to your local Raine & Horne commercial property experts for tailored insights. Chris Nicholl Chief Executive Officer Raine & Horne Group
4 | Insights H1 2026 At a glance: Key market drivers Chris Nicholl, CEO of Raine & Horne, sums up the key factors shaping today’s commercial property market. Rates climb higher, sellers need to be realistic The 0.25% February rate hike could be seen as a game changer for the investment market but as the Reserve Bank of Australia (RBA) has observed, “market expectations of the cash rate had risen noticeably since around August 2025” . The experience of Raine & Horne commercial property experts around Australia suggests many investors were aware of the prospect of a rate hike in early 2026, and as a result, have factored higher borrowing costs into price negotiations. This calls for sellers to take a realistic approach when it comes to asset pricing. https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-02-03.html https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-02-03.html https://www.abs.gov.au/media-centre/media-releases/household-spending-down-04-december https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-falls-41
Insights H1 2026 | 5 A growing preference for income stability Part of the appeal of commercial property has always been the stability of income it generates through long, and often costeffective lease arrangements. This is especially important at present because as the RBA observed in its February rate meeting, “Australian equity prices underperformed other markets over preceding months” . We continue to see commercial property deliver attractive yields coupled with solid cash flows, which continue to make this asset class attractive to investors. Low supply backed by high demand In recent years, the continuing growth in residential property prices has seen commercial property assets converted to residential housing. This, coupled with an already acute undersupply of land devoted to new industrial estates, is driving the price of industrial assets higher especially in areas close to CBDs, transport links and infrastructure hubs. There is little evidence that this will change any time soon. Household spending remains robust Despite a cost of living crunch, data from the Australian Bureau of Statistics indicates that household spending remains strong – rising 5.0% in 2025 relative to 2024. Backed by an unemployment rate of just 4.1% , this is a positive driver for commercial real estate with many businesses ultimately relying on consumer spending for revenue growth.
6 | Insights H1 2026 Raine & Horne Commercial sets new benchmark with 2025 National Auction Event In 2025, the Raine & Horne Commercial National Auction Event cemented its status as a marquee date on Australia’s commercial property calendar for investors, developers, SMEs and self-managed super funds. The quarterly campaign delivered more than $50 million in sales and expanded into a two-day program across Brisbane and Sydney. In-room and online bidding secured nearly 40 Scan the QR code for information on these outstanding properties and register your interest. We look forward to seeing you online or in rooms. National Media coverage 1 million+ Digital impressions 40 High-Quality Assets Sold $150m+ Generated in sales high-quality industrial, office and retail assets from capital cities and major regional centres. Raine & Horne Commercial’s strength lies in its close collaboration with investors and business owners to maximise outstanding auction outcomes for vendors.
Insights H1 2026 | 7 The next National Auction Event: Thursday April 30th, 2026 10:30 am AEST In addition to our National Auction Event series, Raine & Horne Commercial proudly presents its latest specialised offering: Industrial Solutions. A curated digital portfolio, Industrial Solutions showcases our industrial leasing and sales strength across Australia’s competitive, high-performing metropolitan and regional markets. Industrial Solutions is made possible by Raine & Horne Commercial’s robust local market relationships and extensive geographic coverage. These ensure our clients have access to the best properties in prime locations across the country. 1 million Impressions 5,000 Clicks National Media coverage Scan the QR code to view the Industrial Solutions properties currently available. Industrial Solutions leverages Raine & Horne Commercial’s strong local market relationships and expansive geographic coverage to help Australian small and medium-sized enterprises (SMEs) grow. According to Chris Nicholl, CEO of Raine & Horne, “Industrial Solutions benefits our landlords and empowers potential lessees by making these prime properties very accessible.” Industrial Solutions making prime commercial properties more accessible than ever
New South Wales
Insights H1 2026 | 9 Chris Nicholl of Commercial Sydney CBD says office vacancy across the city’s CBD held steady at 13.8% over the second half of 2025 as tenants increasingly focus on high quality properties. There is a growing divide between A-grade and B-grade assets as employers look for properties offering a wealth of amenities to entice teams back to formal workplaces. Property owners who are prepared to upgrade assets can bridge the gap by investing in improved facilities and flexible fit-outs, while assets with strong eco-credentials can deliver reduced costs for both tenants and landlords. Chris explains, “In many cases tenants want to see their leased assets work harder, often leasing less space but with a focus on amenity to attract and retain staff as well as cost reduction. Chris Nicholl chris.nicholl@sydneycbd.rhc.com.au Commercial Sydney Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $450-$2,200 n/a $500-$2,000 Vacancy 11% n/a 8% Yields 6-7.25% n/a 5.75-8.75% Rates p/m² $8,000-$30,000 n/a $7,500-$30,000 Current market conditions Undisclosed 447 Kent Street, Sydney Undisclosed 447 Kent Street, Sydney Recent Notable Transactions LEASED LEASED
10 | Insights H1 2026 Luke Smith of Commercial Inner West/South Sydney says the industrial property market in Sydney’s Inner West continues to be a powerhouse performer. Moreover, Luke notes that Marrickville is “now the place to be”. According to Luke, “Marrickville is one of Sydney’s most dynamic and evolving precincts, benefiting from new developments both completed and planned. The suburb has always been known for its cool amenities, and now the completion of the metro rail line through this part of the inner west is adding convenient accessibility to the appeal of Marrickville. “Industrial property continues to be the jewel in the crown of the inner west commercial property market, and this is reflected in the impressive prices we have been achieving, buoyed by strong buyer interest. More broadly though, the tight vacancy levels seen across all segments of the market reflect the appeal of Sydney’s Inner West for both owner occupiers and investors.” Luke Smith lsmith@rhcss.com.au Inner West | South Sydney Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $450-$700 $250-$450 $550-$1000 Vacancy 5.0% 3.0% 5.0% Yields 4.0-5.0% 3.5-4.5% 4.0-5.0% Rates p/m² $8,500-$12,000 $7,000-$11,000 $8,500-$12,000 Current market conditions $9,900,000 23-27 Cadogan Street, Marrickville $6,000,000 23-27 Smith Street, Marrickville Recent Notable Transactions SOLD SOLD
Insights H1 2026 | 11 Mark Ammoun of Commercial Bankstown says while industrial property across Southwest and Western Sydney continues to demonstrate underlying strength, momentum has eased following recent interest rate increases. “The rate hike had an immediate impact, -with a reduction in qualified enquiries, as buyers and tenants became more cautious.” Market expectations have also shifted significantly over the last 12 months. “Where interest rate reductions were once anticipated, rates have now increased and are widely expected to rise further. “This change has affected investor confidence, with higher borrowing costs now factored into acquisition decisions.” “Investors are increasingly focused on income stability and risk management, placing greater importance on sustainable yields and realistic pricing aligned with the interest rate environment.” Transaction activity hasn’t slowed, but buyer depth has thinned. “We’re seeing fewer participants, with active buyers more selective,” Mark says. “As a result, decision-making timeframes are longer, with more due diligence and measured negotiations.” While conditions remain more restrained than in previous years, industrial sector fundamentals remain intact. “For buyers and occupiers prepared to adapt to the current environment and take a longer-term view, opportunities continue to present themselves.” Mark Ammoun m.ammoun@rhc.com.au Bankstown Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$320 $200-$300 $400-$700 Vacancy 6-10% 1.5% 7% Yields 6-7% 4-5% 7% Rates p/m² $3,000-$6,500 $4,000-$7,250 $5,500-$13,000 Current market conditions $3,608,000 752 Parramatta Road, Lewisham Recent Notable Transactions SOLD $494,000 p.a. Building 1 - 120-122 Warren Road, Smithfield LEASED
12 | Insights H1 2026 Anthony Bouteris of Commercial Sutherland Shire says, “The Sutherland Shire commercial market remains challenging in parts. In the office sector, buyer enquiry is limited, and transactions are taking longer than usual.” “Every deal requires more negotiation and persistence than we have seen in recent years. That said, sales are achievable, provided vendors are realistic on pricing, and are prepared to be patient.” Industrial property continues to be the standout performer in the Shire, with rents and sale prices per square metre trending higher than six months ago. Retail is also showing signs of recovery, highlighted by the recent sale of a Miranda shop-top for $1.875 million. Anthony Bouteris anthony@rhmiranda.com.au Sutherland Shire Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $300 - $350 $300 - $350 $500-800 Vacancy 5.0% 5.0% 15.0-20.0% Yields 6.0% 5.0% 6.0-7.0% Rates p/m² TBC TBC TBC Current market conditions $1,875,000 98 Kiora Road, Miranda Recent Notable Transactions SOLD $1,560,000 96 Kiora Road, Miranda SOLD
Insights H1 2026 | 13 Christian Cirillo from Commercial Parramatta says, “Parramatta commercial office and retail assets offer some of the best ‘bang for your buck’ freehold and strata sale opportunities in Australia right now. “The greater Parramatta area is a massive drawcard for big business. Company overheads and profit margin sensitivity continue to play a factor in office accommodation, and we are seeing businesses migrate from traditional and non-traditional CBD locations.” Commercial Parramatta’s Duarte Figueira adds, “2026 is already shaping up to be the year of office space recovery, as seen in the Sydney CBD sector. So too, the Parramatta market is showing a stronger pulse as incentives are tapering off from as high as 40% in some cases, and appear to be decreasing rather than increasing.” Parramatta Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $300-$750 $180-$300 $400-$1,200 Vacancy 21% 5% 10% Yields 6.0-6.5%% 5-5.5% 6.0-6.5% Rates p/m² $8,500-$10,000 $4,500-$6,000 $8,000-$12,000 Current market conditions $5,900,000 121 Silverwater Road, Silverwater Recent Notable Transactions SOLD $12,400,000 12-14 Wentworth Street, Parramatta SOLD For more information, contact: Duarte Figueira dfigueira@rhc.com.au Christian Cirillo ccirillo@rhc.com.au
14 | Insights H1 2026 Liz Prasad of Commercial Penrith says, “Property sales have started the new year with renewed momentum. Buyer sentiment has shifted from caution to action, as more parties progress to formal offers.” Retail investment assets continue to perform solidly, with yields generally sitting in the 4.8% to 5.2% net return range, reflecting sustained demand for well-located, securely leased neighbourhood and convenience-based centres. In the Penrith CBD, Liz says, “Development activity remains constrained. Ongoing challenges including flood evacuation requirements, building height limitations, and elevated construction costs have reduced the pool of active developers pursuing site acquisitions. As a result, enquiry for CBD development sites is currently being driven more by private investors and potential owneroccupiers rather than large-scale developers.” Penrith’s industrial market experienced a softer finish to 2025, with buyers showing resistance to the premium pricing levels that had previously been achieved. Liz explains, “This shift is largely linked to upcoming supply, particularly projects such as Nepean Business Park, which has caused some purchasers to adopt a wait-and-see approach until these developments are completed and released to the market.” Penrith Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $350-$400 $175-$220 $500-$600 Vacancy 10-15% 7% 7% Yields 6-7% 4-5% 5.5-6% Rates p/m² $6,500 $4,500-$5,000 $8,000-$10,000 Current market conditions $2,550,00 52 Cox Avenue, Kingswood Recent Notable Transactions SOLD $300Net p/m² Shop 1/87-93 Henry Street, Penrith LEASED Liz Prasad liz.prasad@rhc.com.au For more information, contact:
Insights H1 2026 | 15 According to Vincent Stevens of Commercial Liverpool, the construction of Sydney’s second international airport, now tracking ahead of schedule, is already generating strong momentum across the southwest, highlighted by a recent Rural Fire Service test landing of a Boeing 737. “This is driving increased interest across local LGAs despite the challenging market conditions of the past six months,” Vincent says. “Even with shifting conditions, many rates are holding firm as investors and owner-occupiers are buoyed by the airport’s long-term potential and the opportunities that may arise.” The Liverpool CBD has also marked the commencement of the final stage of Liverpool Civic Place, a landmark research and knowledge precinct set to further strengthen Southwest Sydney’s position as a hub for education, research and innovation. The University of Wollongong (UOW) has reinforced its commitment to the precinct by securing an additional 11,300 sqm in the final stage, on top of the 6,000 sqm it has already committed to occupying within Liverpool Civic Tower from 2026. Vincent adds, “Liverpool Civic Place further cements Liverpool’s status as a medical and education hub, while also creating opportunities for ancillary businesses and driving demand for commercial space close to the CBD.” Vincent Stevens vincent.stevens@rhc.com.au Liverpool Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $350-$400 $200-$250 $550-$750 Vacancy Below 5% 1% 5% Yields 6.5% 6% 6% Rates p/m² $5,500-$6,000 $4,500-$5,500 $10,000 Current market conditions $7,500,000 262-264 Macquarie Street, Liverpool Recent Notable Transactions $150,000 p.a. + GST 149-151 Macquarie Street, Liverpool LEASED SOLD For more information, contact:
16 | Insights H1 2026 Daniel Krobot of Commercial Macarthur says, “Leading into 2026, there was a distinct lack of enquiry across all segments of the market. As of January 2026 we have noticed an increase in enquiry across the marketplace with a good volume of sale and leasing transactions kicking off the year. “Demand for industrial property is strong, and it is still the most resilient sector in our market, even though we are seeing a larger amount of supply then we have for the last few years. “Overall, we are finding all deals are taking longer to finalise, however sentiment is generally positive in South Western Sydney, and I would describe our market as normalising.” Daniel Krobot daniel.krobot@rhc.com.au Macarthur Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $300-$500 $180-$220 $400-$600 Vacancy 10% 5% 7% Yields 6% 5.5-6% 6% Rates p/m² $7,000-$9,500 $3,800-$5,000 $8,000+ Current market conditions $2,225,000 Unit 5, 18 York Road, Ingleburn Recent Notable Transactions SOLD $260,150pa net +GST and outgoings Suite G08-G10, 39-47 Lasso Road, Gregory Hills LEASED
Insights H1 2026 | 17 Geoff Tilden of Commercial Central Coast says the Gosford CBD market has been slow to regain momentum following the Christmas period, particularly in the retail sector. “Cost of living pressures on consumers are impacting businesses in Gosford, and the latest rate hike is unlikely to ease the situation. “Retail leasing activity remains subdued, and we’re seeing higher vacancy levels across the Gosford CBD,” Geoff adds that smaller industrial units are proving difficult to lease due to an oversupply, with many sold to investors but still vacant. However, softer rents are creating opportunities for owner-occupiers and small businesses seeking affordable new premises in Gosford. Several major new developments are expected to support longer-term confidence. The opening of the luxury voco Gosford hotel is helping to drive activity in the CBD and supporting surrounding retailers. In addition, the new University of Newcastle Gosford Central that opened to students in January 2026, is contributing to a growing population of younger residents and increased CBD activity. “The university is bringing more young people into town and helping transform Gosford into a genuine university-style city,” Geoff says. “There are multiple new residential buildings under construction, and this continued development should support future demand.” Geoff Tilden geoff.tilden@gosford.rh.com.au Central Coast Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $200 -$300 $110-$150 $250-$350 Vacancy 20% 10-12% 20 -30% Yields 6.5-7% 6-7% 6-6.5% Rates p/m² $3,500-$4,000 $3,000-$4,500 $3,000-$4,000 Current market conditions $3,500,00 134 Erina Street, Gosford Recent Notable Transactions SOLD $435,000 + GST 1/6 Burns Crescent, Gosford SOLD
18 | Insights H1 2026 Brad Wallace of Commercial Newcastle says the regional city’s commercial property market has started 2026 in a stable and evolving position, with varied performance across asset classes. Office space performance is mixed due to new supply, while industrial and logistics assets continue to benefit from strong fundamentals driven by port and freight activity. Major infrastructure projects such as the $115.5 million NSW Government investment to establish a major logistics hub near the Port of Newcastle, alongside more than $650 million in public spending to activate the CBD and waterfront. Projects such as the Newcastle Interchange and expanded light rail are also supporting longer-term economic and commercial property market growth. Brad Wallace brad.wallace@newcastle.rh.com.au Newcastle Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$350 $150-$250 $350-$550 Vacancy 15-20% 10-15% 10% Yields 6-7% 5.5-6.5% 6-8% Rates p/m² $3,000-$5,000 $3,000-$5,500 $4,000-$5,000 Current market conditions $910,000 270 Maitland Road, Mayfield Recent Notable Transactions SOLD $37,000 Gross 7/5 Edge Street, Boolaroo LEASED
Insights H1 2026 | 19 The Port Macquarie commercial market continues to be underpinned by resilient small businesses, which play a central role in the strength of the local economy, supported by active business networks and council resources. Luke Horton from Commercial Port Macquarie says the small business environment is holding firm despite ongoing pressures. “Local operators are resilient, but still facing challenges, particularly the cost of recovery following extreme weather events and rising operational cost pressures. That said, there are encouraging structural supports and initiatives emerging that are strengthening long-term commercial property market vibrancy.” From a market perspective, conditions remain steady. Industrial demand is stable, underpinned by competitive yields and low vacancies. “There is strong investor appetite for revenue-producing commercial properties such as multi-tenanted industrial complexes,” Luke adds. Regional value growth continues, albeit at a more modest pace compared to major cities. This is reinforcing local business and investor confidence. Graeme Garrett ggarrett@rhcpmq.com.au Port Macquarie Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $400-$450 $180 $450-$500 Vacancy 5% 6% 6% Yields 6-6.5% 6-6.5% 6-6.5% Rates p/m² $5,000 $3,000 $8,000 Current market conditions $6,200,000 140 Lake Road, Port Macquarie Recent Notable Transactions SOLD $3,500,000 177 Lake Road, Port Macquarie SOLD Luke Horton lhorton@rhcpmq.com.au For more information, contact:
20 | Insights H1 2026 Mathew Ivanoff of Commercial Wollongong says, “The Wollongong market has remained generally steady over the past six months, despite volatility in interest rates, including cuts followed by the February rate hike. “This is set to continue for the first half of 2026 despite the latest rate hike, although another rate rise could tilt this stability.” While both sales and leasing activity have held up, Matthew notes that the office sector has softened slightly, and there is an oversupply of light industrial space – a trend being seen across several regional NSW markets. Street front retail properties such as 92 Auburn Street, Wollongong and more traditional strip-shop retail like 25 Princes Highway, Dapto have caught the eye of owner-occupiers and investors. Mathew Ivanoff mathew@rhw.com.au Wollongong Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-350 $250-300 $375-400 Vacancy 12% 2% 8% Yields 7.5-8% 6-7% 4% Rates p/m² $6,000 $1,300 $6,500 Current market conditions $1,760,000 25 Princes Highway, Dapto Recent Notable Transactions SOLD $1,800,000 1-4/92 Auburn Street, Wollongong SOLD
Insights H1 2026 | 21 Craig Tait from Commercial Wagga Wagga says the commercial property market in Wagga Wagga has remained strong, with good growth in capital values created through increased demand. Wagga Wagga is experiencing a lack of commercial land, which is pushing established prices higher, particularly among owner occupiers seeking entry to the market. Investors are very active, and time on market has significantly reduced. That said, there are still opportunities to secure high quality commercial investments, if buyers can move quickly. The rental market is steady, with demand for retail slowly returning. The industrial rental market is still very buoyant. With many large infrastructure projects in the region, it is expected that rental demand will increase over time. Craig sums up the market, saying, “We are very pleased with the way the commercial market in Wagga Wagga is travelling along at the moment. We are experiencing a reasonable level of optimism in the Wagga Wagga market, which is supporting commercial leasing transactions in the city. Craig Tait craig.tait@wagga.rh.com.au Wagga Wagga Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $300-$400 $90-$160 $300-$550 Vacancy 5% 3% 5% Yields 6-7% 6.5-7.5% 6.5-7% Rates p/m² $4,000-$5,000 $1,500-$3,000 $4,000-$5,000 Current market conditions $2,000,000 18 Meurant Avenue, Wagga Wagga Recent Notable Transactions SOLD $1,960,000 16-18 Baylis Street, Wagga Wagga SOLD For more information, contact:
22 | Insights H1 2026 Joe Burgun from Commercial Dubbo says local industrial land values have continued to rise sharply over the past 12 months, driven by a shortage of shovel-ready, industrial-zoned land releases. On the demand side, Joe says government infrastructure investment, along with private capital flowing into renewable energy and critical minerals, is fuelling demand for commercial properties. “Dubbo continues to perform as a leading regional service and logistics centre in the Central West of New South Wales, supporting sustained demand for serviced industrial land.” The rollout of the Central West Renewable Energy Zone has emerged as a key demand driver, particularly for sites suited to short-term accommodation. Joe says, “Increased contractor presence, project staging, and ancillary services to the renewable energy and infrastructure sector have driven enquiry for land and existing assets capable of conversion or adaptive reuse.” Investor demand remains broad-based, spanning industrial, retail, office, and mixed-use assets. This demand has continued to place downward pressure on yields, particularly for assets offering long WALEs and minimal capital expenditure requirements. Developer interest in Large Format Retail (LFR) has accelerated, with strong demand for suitable development sites. Joe Burgun joe@rhdubbo.com.au Dubbo Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $200-$400 $75-$200 $200-$600 Vacancy 5-8% <5% 5-8% Yields 6.5-7.5% 5.5-6.5% 6.5-7.5% Rates p/m² $2,000-$4,000 $1,000-$3,000 $2,500-$5,000 Current market conditions $1,575,000 9 Blueridge Drive, Dubbo Recent Notable Transactions SOLD $1,900,000 21-23 Bultje Street, Dubbo SOLD
Insights H1 2026 | 23 Lisa O’Neill of Commercial Southern Highlands, says, “The Southern Highlands commercial market is currently seeing stronger sales activity in retail and office space compared to units and warehouse stock, with a high volume of industrial listings available. “Retail leasing conditions remain subdued, while hospitality and food premises are experiencing slower sales and leasing demand.” By contrast, industrial warehouse rentals continue to perform well across the region, with strong tenant demand for both smaller formats and larger spaces of 400 square metres and above. Lisa notes, “The current challenge lies in a mismatch between supply and demand. The majority of available warehouse stock falls within the 100–200 square metre range, creating a surplus, while demand increasingly shifts toward larger-scale facilities.” Lisa O’Neill lisa.oneill@sh.rh.com.au Southern Highlands Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $300-350 $220- $350 $600 - $700 Vacancy Low Steady High Yields 6.0% 6.0% 7.0% Rates p/m² $500 - $600 $5,000 -$8,000 $600 - $1,000 Current market conditions $2,000,000 + GST 378 Argyle Street, Moss Vale Recent Notable Transactions SOLD $1,075,000 1 Princes Street, Mittagong SOLD For more information, contact:
24 | Insights H1 2026 Raine & Horne Commercial Retail Services Daniel Sutton of Raine & Horne Commercial Retail Services believes retail property will continue to improve through 2026 despite macroeconomic challenges including the uncertainty of US tariffs, inflation and interest rate pressures. “Well-positioned, non-discretionary neighbourhood centres continue to be favoured, particularly in areas of strong population growth,” says Daniel. Year-on-year retail sales growth, a key indicator of a retail asset performance, performed well in the final quarter of the year with December growing by 4.7% and November 6.9% YoY. Cafes and takeaway outlets continue to perform strongly which, together with supermarket sales, underpin the success of many neighbourhood shopping centres. Value of retail assets will continue to be derived from remixing and small project opportunities. Shopping centres with mixed use opportunities are also strongly sought after.
Insights H1 2026 | 25 In terms of leasing, Daniel says, “Retail leasing has seen solid activity in 2025. However, retailers are being prudent in location choice. Strong supermarket-based assets and large format retail are the favoured assets.” High development costs and planning constraints, leading to lower retail supply, are underpinning rental growth. Population growth, particularly in areas with strong demand from young consumers, will continue to drive retail sales growth (for good quality retailers), leading to rental growth and lowering vacancy rates. “We expect to see demand for retail space to continue to be strong in well-established and strong performing supermarket-based centres, especially those centres with good accessibility, that are clean and wellmaintained,” says Daniel. Retail leasing opportunities will come through remixing of current tenants, exiting those retailers which have not evolved, and replacing with tenants that create exciting experiences. Owners and managers looking to improve centre performance against competing centres through centre refurbishments and small scale projects will also continue to drive activity.
Australian Capital Territory
Insights H1 2026 | 27 Mark Nicholls of Commercial Canberra says the ACT’s industrial property market remains extremely resilient. A shortage of affordably priced standalone and strata-titled industrial units, combined with the ACT Government’s limited release of industrial-zoned land, is continuing to place upward pressure on values. “This ongoing supply constraint is making it increasingly challenging for owner-occupiers to secure practical and cost-effective warehousing, factory space and workshops,” Mark notes. At the same time, Canberra’s office and retail markets remain stable, underpinned by steady demand for both newly developed space within mixed-use projects and established resale stock. Enquiry levels are particularly strong for well-leased assets, especially those offering long-term tenancies and strong tenant covenants. From 1 July 2025, the stamp duty-free threshold for commercial property in the ACT increased from $1.9 million to $2 million. Despite ongoing interest rate pressures and council charges, this incentive has stimulated investor activity across all commercial sectors, with notably strong interest from interstate buyers. Canberra Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $350-$600 $200-$400 $400-$950 Vacancy 9.5% 1-2% n/a Yields 6-7.5% 5-6.5% 5.5-7% Rates p/m² $4,000-$6,000 $3,000-$4,500 $6,000-$12,000 Current market conditions $6,870,00 17 & 19 Barry Drive, Turner Recent Notable Transactions SOLD $5,650,000 6 Jenke Circuit, Kambah SOLD Mark Nicholls mark.nicholls@canberra.rhc.com.au
28 | Insights H1 2026 Queensland
Insights H1 2026 | 29
30 | Insights H1 2026 Trent Bruce of Commercial Brisbane, explains, “Brisbane’s residential property market has seen significant price gains in recent years, underpinned by strong interstate migration, relative affordability compared with other capital cities and resilient local economic conditions. This buoyancy is having a ripple effect on the commercial property sector. “Residential demand and growth fuels demand for retail space, services and amenities. As development intensifies in North Brisbane, demand for supporting industrial uses continues to rise. This trend is amplifying demand for strategically located, smaller industrial properties. The office market is also faring well in comparison to other states with steady vacancy rates.” Overall, Brisbane’s commercial property sector is performing well. “Higher interest rates will have an influence on pricing and yields. However, the city continues to offer resilient long term investment fundamentals for well-capitalised buyers, says Trent. “Brisbane is without question one of – if not the top-performing capital city – for future growth, offering sustained demand and tightening supply.” Trent Bruce tbruce@rhcommercial.com Brisbane North Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $350-$450 $170-$250 $500-$750 Vacancy 10% Below 5% 8% Yields 5.5-6.0% 5.25-6.0% 5.5-6.0% Rates p/m² $5,500-$8,000 $4,000-$5,500 $6,000-$8,500 Current market conditions $5,850,000 268 South Pine Road, Enoggera Recent Notable Transactions SOLD $263,360 Net + outgoings + GST 1/739 Deception Bay Road, Rothwell LEASED
Insights H1 2026 | 31 Joseph Grasso of Commercial Brisbane Southside says suburban office markets remain challenging with limited tenant demand coupled with a flight to quality across the commercial office market. He says, “A-grade office space is what major organisations are looking for. That’s creating challenges for suburban markets, which typically involve lower grade stock.” In the retail space, Joseph says the market is facing headwinds from staff penalty rates through to cost of living pressures for consumers. However, he notes, “Good retail will always do well, but ‘good’ retail is a function of foot traffic” The industrial property markets across Brisbane, southside and the Bayside region continue to perform strongly with sales demand remaining firm, and quality stock generating strong interest from both owner occupiers and investors. Joseph adds that industrial property can be a natural progression for residential investors. He says industrial units of 60-90 square metres can be picked up for between $500,000 and $1 million, with yields around 5%. Nick Comino nick@rnhcommercial.com.au Brisbane Southside Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $190-$260 $140-$185 $400-$525 Vacancy 11% 5% 12% Yields 6.25-7% 5.75-6.0% 5.5-6.5% Rates p/m² $4,000-$5,000 $2,800-$4,500 $5,500-$6,000 Current market conditions $9,400,000 2684-2692 Ipswich Road, Darra Recent Notable Transactions SOLD $4,050,000 799 Fairfield Road, Yeerongpilly SOLD For more information, contact: Joseph Grasso joseph@rnhcommercial.com.au
32 | Insights H1 2026 In a market where buyers are outnumbering listings, Michael Parisi of Commercial Gold Coast says demand across all commercial sectors, including retail, office and industrial, is exceptionally strong, driven by a tremendous population shift to south-east Queensland. Likewise, the commercial leasing market on the Gold Coast is experiencing a strong, sustained pick-up, driven by high demand for quality space and a shortage of supply, illustrated by the lease of a retail space in the Galaxy Centre for almost $215,000 annually. Michael Parisi michael.parisi@rhc.com.au Gold Coast Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $200-$500 $200-300 $600-$1,000 Vacancy 5% 3% 3% Yields 6% 6% 5% Rates p/m² $3,000 -$5,000 $8,000 $10,000 Current market conditions $214,920 p.a. G36 X Galaxy Centre, Surfers Paradise Recent Notable Transactions LEASED $167,769 p.a. G1-4 X Galaxy Centre, Surfers Paradise LEASED Photo Confidential
Insights H1 2026 | 33 Des Besanko of Commercial Mackay says there has been some to-and-fro between the big mining companies and the Queensland state government regarding changes to the mining tax, formally known as the ‘coal royalties scheme’, especially as the price of coal has softened leading to compressed margins. “Given the softer coal price, combined with the royalties structure, companies like BHP have placed a number of mines into maintenance, meaning they’re no longer operating or producing coal, and this has resulted in some job losses. The bigger issue with coal royalties is that miners are holding back on further investment in Queensland operations. This limits expansion and the development of new projects. They view Queensland’s tax regime as among the most expensive in the world and are instead deploying capital into other countries where returns are stronger.” This has also resulted in resource-related contracts being shuffled around, which has impacted Mackay’s leasing market for subsidiary businesses. That said, the local market is still undersupplied, especially for industrial property. Des also notes he is seeing several large-scale businesses consolidate their facilities, and this has driven the sale of several multi-hectare sites in Mackay. Des Besanko des.b@rhc.com.au Mackay Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$350 $175-$225 $150-$200 Vacancy n/a n/a n/a Yields 7.5-8.25% 6.25-7.5% 6.5-7.5% Rates p/m² n/a n/a n/a Current market conditions Photo Confidential $8,210,000 33 Michelmore, Paget Recent Notable Transactions SOLD $464,680 p.a. +outgoings + GST 42-44 John Vella Drive, Paget LEASED
34 | Insights H1 2026 Steve Leaumont of Commercial Townsville says a projected $40 billion transformation of Townsville is gathering pace as the city races to deliver housing, infrastructure and major events ahead of the Brisbane Olympics. The $30 million Flinders Street Wharves project has transformed the historic waterfront into a 2,600sqm, multi-level hospitality and entertainment precinct. Meanwhile, the recent approval of Townsville City Council’s Residential Activation Fund application will unlock more than 4,000 new homes while fast-tracking the infrastructure needed to support the city’s growth. The new Flinders Street Wharves precinct is bringing life back to Flinders Street East and activating the Ross Creek boardwalk, while Council’s City Activation and Housing Incentives Policy, and the 4.5-hectare North Rail Yards site redevelopment, will further energise the CBD and deliver higher-density housing and attract additional investment. “There are further housing developments, including build-to-rent projects, supporting construction and local jobs,” Steve says. “The buoyancy of the local retail and office markets is closely linked to these factors. Townsville’s industrial market also remains a strong performer.“While mining royalties are impacting other parts of Queensland, that’s not the case here, with the local mines continuing to drive industrial demand” Steve adds. Steve Leaumont steve.leaumont@townsville.rhc.com.au Townsville Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $215-$280 $160-$200 $250-$350 Vacancy 15% 5% 12-15% Yields 9-10% 7-8% 8-9% Rates p/m² $2,000-$2,500 $1,800-$2,200 $2,700 - $3,200 Current market conditions $72,000 1,2,3, 4 / 5 Bright Street Avenue, Arcadia Recent Notable Transactions $54,000 5,6,7 / Bright Avenue, Arcadia For more information, contact: Photo Confidential Photo Confidential LEASED LEASED
Insights H1 2026 | 35 Peter Atkinson of Raine & Horne Commercial Hervey Bay reports steady market conditions through 2025 and into early 2026, supported by population growth and consistent demand across key sectors. Tourism is also boosting confidence, with daily direct flights from Sydney and Melbourne services now operating four days a week. “While much of the growth is driven by people relocating to the region, it’s also lifting demand for services and retail, which is great news for retail property landlords.” In the office sector, quality space is tightly held, with limited new supply. “There’s ongoing demand for professional offices in the Pialba CBD and along the Esplanade. However, availability in the CBD remains significantly constrained following the March 2025 floods, with some properties still undergoing renovations.” Among the commercial property asset classes, industrial remains the strongest performer. A large development site along Drury Lane is being positioned for small commercial rental properties, with very low start-up rental rates expected to attract strong tenant interest. Peter Atkinson peter.atkinson@herveybay.rh.com.au Hervey Bay Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $240-$400 $130-$165 $290-$350 Vacancy 10% 10% 10% Yields 6.5-7.0% 6 -7.5 % 7 – 7.5 % Rates p/m² $1,800 -$2,300 $2,000 - $2,500 $2,500 - $3,000 Current market conditions $900,000 111 Old Maryborough Road, Pialba Recent Notable Transactions SOLD $180,000 total value 3/65 Torquay Road, Pialba LEASED
36 | Insights H1 2026 Victoria
Insights H1 2026 | 37 Tim Furlan of Commercial Brunswick says that after a reasonable 2025, it’s been a sluggish start to the new year, a situation exacerbated by the Reserve Bank’s decision to hike interest rates in early February. “We’re hopeful that if interest rates don’t move much further north, buyers and tenants will have the confidence to make a move. That said, government spending has overreached the runway, and it won’t be able to fix this situation in a hurry.” Industrial sales and leasing remain the brightest spot in Melbourne’s inner-city markets, ahead of retail and then office. “In the office markets, there are more opportunities to lease space, but owners will need to offer incentives to get many deals across the line,” Tim says. Tim Frlan tim.frlan@brunswick.rh.com.au Brunswick Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $200 -$300 $110-$130 $350 -$450 Vacancy 15-20% 10-15% 12-20% Yields 5-6% 5-6% 5-6% Rates p/m² $2,000 - $3,000 $2,000 - $3,000 $5,000 -$7,000 Current market conditions $680,000 3/78 Willandra Drive, Epping Recent Notable Transactions SOLD $1,775,000 101a & 101b Sydney Road, Brunswick SOLD
Tasmania
Insights H1 2026 | 39 Leslie Simpson of Commercial Hobart says, “We have seen a noticeable increase in activity from around December 2025, and this is continuing into 2026. “It seems the market has anticipated no further interest rate cuts in 2026, and those that were waiting to do business have just got on with it.” That said, the full impact of the February rate hike has yet to be felt, and any further rate rises, should they eventuate, could add additional pressure, Leslie notes. “But for now, the early signs are promising, particularly with several infrastructure projects now underway. “Hobart’s planning Macquarie Point Stadium has now been approved,” adds Leslie, “And the commencement of site works will no doubt provide further impetus and confidence to Hobart’s commercial property market.” Leslie Simpson leslie.simpson@rhc.com.au Hobart Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $350-$500 $125-$230 $400-$1,000 Vacancy 1-3% 1-3% 6-8% Yields 6.5-7.5% 5.5-6.5% 5-6.5% Rates p/m² $3,500-$5,500 $3,500-$4,000 $3,000-$10,000 Current market conditions $7,000,000 14-18 Linear Court, Derwent Park Photo Confidential Recent Notable Transactions $170,000 p.a. + outgoings + GST 11A Lampton Avenue, Derwent Park LEASED Annisa Burns annisa.burns@hobart.rh.com.au SOLD
40 | Insights H1 2026 South Australia
Melanie Winter of Commercial SA says that as of early 2026, South Australia’s commercial property market has transitioned from being a “hidden gem” to a primary engine of growth in the Australian commercial property landscape. “While Sydney and Melbourne have dealt with complex office recoveries, Adelaide has leveraged its lower entry costs and booming industrial sector to attract significant private and institutional capital,” says Melanie. “The industrial sector remains the standout performer. Vacancy rates in the inner-north are at historic lows, pushing development further into the outer-north (specifically Mawson Lakes and Elizabeth) where re-zoning is unlocking new land.” The office market is more divided. Premium, high-amenity ‘A-grade’ buildings in the CBD are seeing steady demand as employers use high-end workspaces to entice staff back to the office,” notes Melanie. “By contrast, secondary, older assets face higher vacancy risks.” Defying national pessimism, local retail, particularly neighbourhood shopping centres anchored by essential services, have seen a resurgence in liquidity. Commercial SA Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $500-$700 $150-$300 $200-$2,000 Vacancy 12-15% Below 5% 5-6% Yields 6.0-7.0% 6.0-7.0% 6.0-7.0% Rates p/m² $4,000-$8,000 $1,250-$4,000 $3,000-$10,000 Current market conditions $1,185,000 1 Perserverance Road, Tea Tree Gully Recent Notable Transactions $6,725,925 1/89 Rowley Road, Aldinga Beach SOLD SOLD For more information, contact: Simon Winter simon.winter@sa.rhc.com.au Melanie Winter melanie.winter@sa.rhc.com.au
42 | Insights H1 2026 Photo Confidential Business sales activity across South Australia continues to follow a familiar “ebb and flow” pattern, with enquiry levels remaining solid despite a recent lull in settlements, according to Simon Winter of Business Sales SA. “Settlements have been slow, however, underlying activity remains healthy and reflective of the longer timelines typically associated with business transactions. “The key point is that buyer enquiries and listing activity are still strong, and it just takes time for business sales to reach settlement.” Simon notes that higher interest rates, while often seen as a headwind for residential property investment, can actually boost demand for business acquisitions. Business Sales Price Confidential Complete Wool Services, Clare SA Recent Notable Transactions SOLD Price Confidential 5-day cafe in busy medical precinct, Address withheld SOLD Simon Winter simon.winter@sa.rhc.com.au Melanie Winter melanie.winter@sa.rhc.com.au For more information, contact:
Insights H1 2026 | 43 “When interest rates are low, investors often favour residential property. As rates rise and returns soften, many start looking at buying a business as an alternative investment,” he said. “Interestingly, most business buyers today don’t rely heavily on borrowing. Only around 20-25% of business buyers require finance, meaning rate rises don’t impact our sector the same way they do residential property.” This is in stark contrast to 20 years ago, when as many as 85% of business buyers used finance to fund the transaction. “But then from 2010 through to about 2020, and certainly into COVID, you couldn’t borrow money to buy a business. So eventually many people buying a business had to pay cash.” Simon Winter simon.winter@sa.rhc.com.au Melanie Winter melanie.winter@sa.rhc.com.au For more information, contact: Simon adds that the post-COVID market is seeing a shift in vendor motivation, with many business owners now listing in preparation for retirement. “About 85–90% of sellers coming to market today are looking to retire. They’re typically motivated and often more flexible in negotiations.”
Western Australia
Insights H1 2026 | 45 Perth’s commercial market is looking very healthy at present. In the key industrial markets, Anthony Vulinovich of Commercial WA, says, “A significant undersupply of industrial land continues to push land rates to new heights, with average industrial land rates now exceeding $700 per square metre within 20 kilometres of the Perth CBD.” This price pressure isn’t expected to ease any time soon given the limited supply of new land developments likely to come onto the market within the next 12-18 months. Supply is being further compressed by limited in-fill sales. Modern industrial built-form stock continues to be in short demand, with lease transactions involving minimal – if any – incentives, and average rates pushing from $150 to $200 per square metre for sought-after stock. Terry Menage terry.menage@rhcwa.com.au Commercial WA Office Industrial Retail Rents p/m² n/a Vacancy n/a Yields n/a Rates p/m² n/a Six-month market outlook Office Industrial Retail Rents p/m² $250-$550 $140-$200 n/a Vacancy 5%-15% Below 2% n/a Yields 6.5-8% 5.75-6.5% n/a Rates p/m² $3,500-$7,000 $2,500-$3,500 n/a Current market conditions $4,340,000 39 Cedric Street, Stirling Recent Notable Transactions SOLD $3,800,000 11 Macadam Place, Balcatta SOLD For more information, contact: Anthony Vulinovich anthony.vulinovich@rhcwa.com.au
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