Commercial property tipped to strengthen in 2026 but economic obstacles remain
Australia's economic mixed signals have commercial property markets teetering between renewed growth and extended time in the doldrums, with office, retail and industrial all responding differently.
CBD retail locations, in particular, have shown a strong recovery, with vacancy rates dropping from 11.6 to 10.0 per cent. (Image source: Shutterstock.com)
Commercial property has been on shaky ground for a year or more but the worst appears to be in the rear view mirror and tentative growth expected throughout 2025 and into next year.
Despite the relatively upbeat projections, there’s definitely no shortage of cautionary economic indicators
.Australia’s first-quarter economic growth missed estimates, with real GDP expansion coming in at just 1.3 per cent. Growth of just 0.2 per cent in the first …
