Canberra’s Commercial Property Market in 2025: Government Stability and Long-Term Growth

As Australia’s capital city, Canberra offers a unique blend of stability and long-term investment appeal. The presence of government agencies and related sectors underpins steady demand, while new development corridors and population growth are beginning to reshape its commercial landscape.

This article explores how Canberra’s commercial property sector is evolving in 2025—and what opportunities it presents for sellers, developers, and investors.

Political stability drives consistent demand

Canberra’s biggest asset is its role as the seat of federal government. This creates a reliable baseline for commercial demand, especially in office and professional service sectors.

• Government departments anchor large-scale office precincts

• Service providers, consultancies, and tech firms cluster near key government hubs

• Low vacancy rates in premium government-leased buildings

• Public sector demand softens downturns in other markets

A growing private sector ecosystem

While government remains dominant, Canberra’s private sector is expanding—especially in defence, education, and technology industries. These sectors are generating new commercial demand across office, industrial, and mixed-use sites.

• Defence and aerospace firms expanding in outer precincts

• University partnerships fuelling tech innovation and office demand

• Rise in co-working spaces and flexible office formats

• Commercial zoning evolving to support mixed-use development

New commercial hotspots beyond the CBD

While Civic remains the heart of Canberra’s commercial activity, other areas are emerging as growth nodes. These include airport-adjacent precincts, industrial corridors, and suburban retail zones.

• Brindabella Business Park near the airport offers modern commercial space

• Fyshwick and Mitchell continue to attract industrial users

• Gungahlin and Molonglo experiencing retail and office development

• Zoning changes encouraging diverse usage in outer suburbs

Low volatility appeals to institutional investors

Institutional investors favour Canberra for its dependable returns and resilience. The city’s risk-averse profile, backed by long-term leases to government tenants, makes it ideal for defensive portfolios.

• Longer lease terms common in Canberra vs. other cities

• Government lease covenants offer high security

• Office yields remain competitive with major cities

• Lower risk of cyclical downturns

Sustainability is a growing focus

Canberra is a leader in environmental initiatives, and this is extending into the commercial property sector. Green building certifications and solar-powered precincts are increasingly sought after.

• Many new builds targeting NABERS and Green Star ratings

• Solar energy uptake in industrial and logistics hubs

• Council planning policies encouraging sustainability-led projects

• Environmental compliance seen as a leasing advantage

Opportunities for sellers in 2025

With limited supply and steady demand, owners of quality assets are well positioned. The city’s low vacancy, strong lease profiles, and future-proofed infrastructure make it attractive to both domestic and offshore buyers.

• High-quality assets commanding premium prices

• Potential for value-add via refurbishments or re-zoning

• Fringe locations offering redevelopment potential

• Strong buyer interest from super funds and syndicates

Strategic timing is key

While Canberra isn’t known for rapid booms, the right timing still matters. Understanding tenant shifts, lease cycles, and local government policy is essential for maximising outcomes.

• Monitor government agency relocations or consolidations

• Stay aware of urban planning and zoning adjustments

• Align sales with lease renegotiation milestones

• Leverage demand for modern, efficient buildings

How we help market commercial property in Canberra

Our commercial property marketing services are tailored to Canberra’s unique profile. From high-end visualisation tools to data-driven strategies, we help you capture the right audience and maximise value.

• Aerial 3D renders that visualise development in full context

• Targeted digital campaigns to reach buyers and investors

• Interactive IMs and brochures built for Canberra audiences

• Strategic brand development for long-term assets

Let’s talk commercial property marketing in Canberra

We’ve helped property owners across Australia unlock value through precise, professional marketing. If you’re planning to sell or lease commercial assets in Canberra, we’ll deliver the strategy and creative to make it happen.