Sydney commercial property news – November / December 2025

Sydney’s commercial and industrial property market closed out 2025 with a renewed sense of stability following a turbulent start to the year. Interest rate cuts, easing inflation, and a wave of project approvals across Western Sydney have helped bolster developer and investor confidence.

Development activity remains anchored in the west

As expected, the most significant commercial and industrial activity continues to cluster around Western Sydney. Major land releases and infrastructure-backed precincts are providing a strategic base for development pipelines into 2026.

• Austral and Leppington South precinct planning remains a central focus, enabling more industrial-zoned land releases in the south-west.

• Mamre Road Precinct continues to attract logistics and warehouse interest due to its proximity to the future Western Sydney Airport.

• Bradfield City Centre saw additional progress in site preparation and early-stage contracts with global partners for advanced manufacturing and tech logistics.

• Kemps Creek and Orchard Hills are both seeing strong early leasing interest in new industrial estates.

Demand stabilising with an eye to 2026 pipeline

Tenant demand and land values in Sydney have generally stabilised, with leasing rates plateauing after steep rises earlier in the year. Developers are now recalibrating for long-term growth aligned with infrastructure timelines and sustained demand for distribution space.

• Pre-leasing on multi-stage developments is becoming the preferred route for risk mitigation.

• Owner-occupier demand is still active, especially in strata-format units under 500sqm.

• Institutional developers are seeking medium-sized infill sites in supply-constrained metro regions.

• Council-led business park strategies are increasing around Blacktown, Penrith and Parramatta LGA areas.

Major land releases position Sydney for industrial resilience

NSW Planning and local councils have made progress on several land zoning and enabling infrastructure projects. These releases will shape the future of Sydney’s industrial corridors for decades to come.

• Draft rezoning exhibited for Eastern Creek Stage 2 lands.

• Marsden Park North sees additional lots earmarked for commercial and mixed industrial.

• Wianamatta South and North stages approved for subdivision to support SME-style logistics spaces.

• Campbelltown North has had increased developer interest following utility upgrades.

Bought / Sold

27 Ashford Avenue, Milperra – $6.4 million sale
A freestanding industrial facility on a 6,700sqm site with strong access to the M5 corridor was purchased by a local owner-occupier.

31 Power Street, St Marys – $4.2 million sale
An older-style 4,000sqm warehouse on over 1ha of land was sold to a transport and haulage firm for redevelopment.

61 Calarco Drive, Cranebrook – $3.8 million leasehold deal
A strata-format warehouse in a newly completed development saw multiple units leased within weeks of completion.

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