More investors are looking toward the commercial sector, resulting in a 13% rise in commercial transaction activity. 

Analysis by CBRE for the first half of 2025 says property investors are considering commercial assets as a way to diversify their portfolios. The report shows a total of $15.5 billion in office, industrial, retail, hotel, and living assets changed hands in the first half of the year. 

CBRE Australian head of capital markets research, Tom Broderick, says investors are being enticed by the higher yields achievable in the commercial market. “Commercial property offers a higher yield than residential, typically, so returns can be higher. However, the price point is typically higher for commercial and risk can be higher also, like higher vacancy risk,” he says. “Over the long term, rents typically rise with inflation, so commercial real estate can be a bit of a hedge against inflation.” According to the report, there is a limited supply across sectors such as retail and office, which is likely to result in solid rental growth over the medium term.