Canberra Commercial & Industrial Property Market — September 2025 Update

Canberra’s commercial and industrial property sector is benefiting from sustained government spending, population growth, and increased demand for defence and logistics infrastructure. While smaller than the major capital city markets, Canberra’s strategic location between Sydney and Melbourne, alongside high levels of public sector stability, is driving significant private investment into key employment zones. Activity is concentrated around Fyshwick, Hume, and Mitchell, with light industrial strata units, secure warehousing, and trade service hubs in strong demand.

Fyshwick Sees High Absorption and Redevelopment Interest

Fyshwick remains Canberra’s most established and active industrial-commercial suburb. Its location close to Parliament House, the airport, and main road connections makes it highly sought-after for a wide range of uses.

• Older stock in Fyshwick is being rapidly redeveloped or refurbished into modern trade units and hybrid office-warehouse spaces

• Strong leasing demand from national retailers, logistics providers, and data infrastructure operators

• Strata titles under 300 sqm are being snapped up by local businesses and owner-occupiers

• Larger land parcels are rare, leading to competitive sales and off-market transactions

• Mixed-use precincts are being explored to combine storage, retail, and commercial functionality

Hume Gains Momentum as a Freight and Logistics Hub

Located on the Monaro Highway, Hume is Canberra’s gateway to regional NSW and Victoria, making it ideal for large-scale freight, transport, and warehousing.

• Large format warehouses with secure yards remain the preferred asset type for institutional and private tenants

• Significant pre-lease interest in lots over 3,000 sqm for transport depots and storage yards

• Road upgrades along the Monaro and Lanyon Drives are improving freight movement and unlocking adjoining land

• High demand for build-to-suit offerings, with low vacancy pushing up land values

• Continued strength in the automotive and heavy vehicle servicing sector, which anchors much of Hume’s leasing base

Mitchell Expands as a Northern Employment and Innovation Zone

The northern suburb of Mitchell is rapidly growing in profile due to proximity to Gungahlin and new light rail access. It’s emerging as a mixed-use precinct with industrial flexibility and growing innovation credentials.

• New development lots under the ACT Government’s land release program have been quickly absorbed

• Smaller light industrial users, trades, and clean-tech operators are driving demand for sub-1,000 sqm spaces

• Affordable rents compared to Fyshwick and Phillip are attracting early-stage businesses

• The new Mitchell Light Rail stop has enhanced accessibility for both workers and clients

• Hybrid industrial-office units are proving popular among design and services businesses

Recent Land Releases Support Continued Expansion

Despite limited overall land availability, targeted releases and redevelopments are helping to support Canberra’s future industrial and commercial needs.

• ACT Government’s Industrial Land Release Strategy has focused on Mitchell, Hume, and Fyshwick for staged releases

• Proposed new sites in Symonston and Majura are being assessed for logistics and warehouse suitability

• Subdivision of legacy public sector sites has created new opportunities for strata development

• Phillip and Belconnen have small pockets being rezoned for trade or services-based industrial activity

• Light rail corridor upgrades are prompting site amalgamations and higher-yield developments

Suburb Spotlight: Fyshwick Repositions as Canberra’s Trade Engine

Fyshwick is no longer just a legacy industrial suburb — it’s Canberra’s new trade engine. With its central location, proximity to population, and modernisation wave, it continues to set the benchmark for flexible, high-demand commercial assets.

• Strong demand for mixed-use showrooms, storage, and logistics assets under 1,000 sqm

• Redevelopment of older warehouses into more efficient and appealing hybrid stock

• Strategic location between the airport, Parliament, and Canberra Avenue business corridor

• Continued interest from defence contractors and national brands looking to establish presence

• Rents and values are rising, but still offer value compared to Sydney’s outer trade zones

Sector Trends: Canberra’s Strategic Role Continues to Strengthen

Canberra’s unique economic base and geographic position are helping shape a clear long-term role in Australia’s commercial and industrial property landscape.

• Defence contractors and government-aligned suppliers are seeking secure, well-connected premises

• Logistics providers are using Canberra as a hub between Sydney and Melbourne with low congestion

• Owner-occupiers dominate the under-500 sqm space, with strong interest in trade-oriented showrooms

• Data infrastructure and light tech manufacturing are emerging as sectors to watch

• Local developers are actively landbanking due to consistent government spending and low vacancy risk

How Commercial Property Marketing Can Help

Whether you’re redeveloping a site in Fyshwick or launching a new logistics facility in Hume, our team helps position your property with high-impact visualisation and marketing. From 3D estate plans to interactive IMs and market-ready websites, we bring Canberra’s developments to life.