Sydney Commercial & Industrial Property Market — September 2025 Update

Sydney’s commercial and industrial market remains active in September 2025 despite ongoing pressure from rising construction costs and cautious developer sentiment. Infrastructure-backed precincts continue to attract interest, with investors zeroing in on last-mile logistics, data centres, and adaptive reuse of inner-city sites. While the industrial leasing market remains competitive, some stabilisation is emerging in land values across fringe areas. Demand is strongest in Western Sydney, particularly around airport-aligned growth corridors, while central districts see more mixed results due to pricing resistance.

Market Activity Remains Focused on Western Sydney’s Growth Engines

Core western and south-western precincts are seeing the highest volume of leasing, development, and strategic land acquisition. These areas continue to benefit from infrastructure certainty and projected population growth tied to long-term government investment.

• Leppington, Bringelly, and Kemps Creek remain standout suburbs in the Western Sydney Aerotropolis for industrial land banking

• Eastern Creek and Horsley Park continue to experience strong lease absorption, with mid-size logistics users leading activity

• Moorebank Intermodal continues to anchor industrial logistics interest in the southern corridor, with high-volume freight operators seeking long-term tenure

• Badgerys Creek sites are being acquired ahead of further airport infrastructure announcements, with speculation around road link upgrades

• Developers are targeting Wetherill Park and Smithfield for speculative builds under 10,000 sqm, responding to mid-tier tenant demand

Major Developments Continue to Drive Confidence in Strategic Corridors

While Sydney CBD faces mixed commercial sentiment, suburban hubs remain buoyed by institutional projects, infrastructure upgrades, and sustained industrial demand. The following projects and announcements are shaping the landscape this month:

• Goodman Group progresses with major industrial builds near the Western Sydney Airport, including large-scale logistics and data-ready assets

• Mirvac’s Stage 2 at Mamre Road Precinct is entering construction, with tenant interest driven by access to arterial freight routes

• NextDC has confirmed further activity in Sydney’s west as part of its broader east coast data centre expansion

• NSW Government’s Planning System Acceleration Program continues to fast-track logistics and warehousing projects across the state’s key corridors

• Refurbishment and adaptive reuse is trending in South Sydney, with older commercial assets being repositioned for industrial use or last-mile operations

Land Releases in Outer Zones Gain Momentum Amid Supply Challenges

With core land increasingly scarce or cost-prohibitive, fringe regions and emerging estates are seeing stronger demand. Several councils have initiated rezoning proposals, and private estates are bringing smaller-lot stock to market to fill the gap.

• North Wilton and Appin in Wollondilly are seeing increased industrial rezoning interest, positioning them for future south-west expansion

• Marsden Park North and Richmond Road Corridor remain under study, with mixed-use and employment land being explored

• Smaller industrial subdivisions have launched in Riverstone and Box Hill, attracting trade and construction-related buyers

• In the Macarthur region, industrial estates near Campbelltown and Ingleburn are seeing high enquiry from owner-occupiers and developers alike

• Several developers are targeting Bringelly’s arterial routes for low-density industrial rollouts with flexible zoning configurations

Suburb Spotlight: Leppington Continues to Draw National Attention

Leppington has cemented itself as one of Australia’s most-watched industrial suburbs. September data shows strong off-market activity, developer interest, and pre-leasing momentum — particularly near the metro rail extension and arterial intersections.

• Zoned land near Bringelly Road is commanding premium prices due to future access links

• Multiple DA-approved subdivision applications are in progress for light industrial lots under 2 ha

• Activity is bolstered by proximity to both the M12 and Western Sydney International Airport, which is on track for its 2026 opening

• Builders are seeking flexible design-and-construct sites with trade showroom and warehouse appeal

• Stakeholders are anticipating a sharp uplift in valuations as infrastructure completion nears

Investor Interest Diversifies Toward Mid-Tier and Repurposed Assets

Institutional buyers are now diversifying away from premium CBD office towers into mid-tier industrial, logistics, and last-mile assets. September has seen a number of notable transactions and leasing moves in this direction.

• Mid-sized funds are acquiring older warehouse stock in Alexandria, Mascot, and Botany for repositioning

• Pre-leases in the 4,000–10,000 sqm range are becoming more common across outer metro Sydney, driven by e-commerce

• Data centre overlays and infrastructure-ready land are being prioritised by buyers across Arndell Park and Huntingwood

• Leasing incentives are holding in place in fringe metro areas, but are tightening around central west Sydney locations

• Capital is flowing into flexible-use projects with hybrid industrial-commercial potential, especially in South Granville

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we work closely with developers, agents, and owners across Sydney’s fast-moving industrial and commercial landscape. Whether you’re promoting a DA-approved estate, securing pre-leases, or selling subdivided lots — our 3D visualisations, branding, websites, and interactive brochures give your project the tools to stand out.