Is Now the Time to Sell Your Commercial Asset?

With rising yields, ongoing demand for well-located assets, and evolving market conditions, many commercial property owners are asking the big question in 2025: is now the right time to sell?

This article explores the indicators, motivations, and strategic timing considerations behind selling commercial property in today’s market—and how to maximise your return.

Understanding Market Conditions in 2025

Australia’s commercial property landscape is stabilising after several years of adjustment. While interest rates remain elevated, demand for quality assets—particularly in industrial, medical, and mixed-use sectors—continues to drive competition among investors.

Current market snapshot:

• Investors still chasing yield amid global uncertainty

• Flight to quality in both leasing and acquisitions

• High demand for future-proofed, ESG-compliant buildings

If your asset sits in a high-growth corridor or offers strong tenant covenants, the timing could be ideal.

Top Reasons to Sell in 2025

1. Capitalise on Peak Value
Properties in logistics, healthcare, and well-positioned office markets are achieving record prices in some areas. Sellers can take advantage of buyer competition before yields compress further.

2. Portfolio Rebalancing
Owners are offloading underperforming or non-core assets to reinvest in high-growth sectors like urban logistics or data infrastructure.

3. Exit Before Major CapEx is Required
If a building is approaching a major upgrade cycle (e.g. HVAC, lifts, ESG compliance), selling beforehand can attract buyers willing to reposition the asset.

4. Tenant Risk or Vacancy Looming
Where lease expiry risk is rising, some owners choose to exit early to avoid re-leasing challenges or incentives.

Signs It Might Be Time to Sell

• Tenants have strong lease terms and rental escalations

• You’ve completed recent upgrades or refurbishments

• The asset’s location is benefiting from new infrastructure

• Investor demand in your sector or region is increasing

• Your capital could be better deployed elsewhere

If several of these apply, engaging a trusted agent for an appraisal or market test can help clarify your options.

How to Maximise Sale Outcome

Presentation matters
Modern, clean assets with updated facilities and compliance credentials attract more buyer interest.

Information Memorandum (IM)
A well-designed IM that clearly communicates potential, tenancy mix, financials, and growth opportunity is essential.

Timing and off-market strategy
In some cases, a quiet off-market campaign yields better outcomes than public listings. Work with agents who know your buyer profile.

3D visualisation or staging
If the asset is vacant or due for repositioning, a rendered vision or conceptual plan can increase buyer confidence.

Alternatives to Selling

Not ready to fully divest? Consider these alternatives:

• Refinancing to release equity

• Joint ventures with developers or other investors

• Repositioning the asset for a stronger rental profile

Sometimes holding and upgrading a commercial asset provides better ROI than selling outright.

Final Thoughts

Selling commercial property in 2025 can deliver strong returns—if the timing, strategy, and execution are right. Whether you’re driven by market value, lease risk, or reinvestment goals, a structured approach ensures you maximise your asset’s potential.