Commercial Property Market Set to Rebound Through 2026

The recovery of Australia’s commercial property sector is expected to gather pace throughout 2025 and into 2026, according to new research released by Knight Frank.

The update to the firm’s Horizon 2025 outlook finds that the sector is “sequentially turning the corner back to growth,” with fundamentals for long-term expansion firmly in place.

While global risks, such as the impact of US-imposed tariffs, still linger, the report notes the worst may be behind the market.

Knight Frank Chief Economist Ben Burston said: “In this respect, property is better placed than other asset classes to withstand the trade war,” adding that volatility in equity and fixed income markets has made property a more attractive option once again.

Following a period of disruption, retail and industrial asset values were the first to recover, with all segments and cities returning to growth by late 2024.

“Office values have also now turned positive in Q1, off the back of improving prospects for core CBD assets despite pockets of over-supply elsewhere,” Burston said.

The report also points to increasing liquidity, with large-scale acquisitions becoming more common and investor confidence returning amid expectations of further interest rate cuts.

“Property markets will respond to the rate-cutting cycle, and the shift in the outlook raises the prospect of yield compression in the second half of the year, starting in the most favoured core markets,” said Burston.

Industrial and logistics assets are leading the charge, with competition intensifying for prime properties in Brisbane and Sydney.

Meanwhile, the living sectors continue to gain ground, with nearly 16,000 new student accommodation and build-to-rent units under construction and more than 20,000 approved for future development.

With asset values now well below replacement cost and market rents lagging, Knight Frank reports a growing pool of investors positioning themselves in core markets to take advantage of cyclical recovery and medium-term rental growth.

Property has always been about more than buying and selling. A home can represent a fresh start, a long-term investment, an architectural idea or a connection to a particular neighbourhood. Even when people are not planning a move, many still enjoy following the market, researching local areas and discovering the stories behind remarkable homes.

Atlas Real Estate is responding to that wider interest by creating more ways for people to engage with property. Bringing listings, market information, local perspectives and lifestyle stories together, Atlas offers a destination for anyone curious about homes and the communities surrounding them.

It reflects the reality that people approach real estate with different needs and motivations. One visitor might be actively searching for a new home, while another may want to understand recent results in their suburb. Others might be keeping an eye on changing market conditions, exploring an unfamiliar area or simply appreciating thoughtful architecture and premium residential design.

At atlas.com.au, those interests meet in one place. Visitors can browse properties for sale and recent results, while also exploring market insights, featured homes, local stories and introductions to the people behind Atlas. The result is an experience designed to remain relevant before, during and after a traditional property transaction.

“We’re reimagining real estate around how people actually engage with property today — bringing together market insight, exceptional homes, local perspective and lifestyle in a way that feels more relevant and useful,” says Michael Coombs, Director of Atlas Real Estate.

That approach recognises that an interest in property rarely begins on the day someone decides to buy or sell. A future buyer may spend months learning about suburbs, monitoring prices and refining their sense of what they want. A homeowner might follow nearby sales to understand the changing value and character of their area. An investor may be looking for broader market context, while a design enthusiast may be drawn to an exceptional renovation or a distinctive piece of architecture.

By accommodating those different forms of curiosity, Atlas aims to make engaging with real estate feel less transactional and more connected to everyday life. Property is shaped by its surroundings: the streets, businesses, landscapes and people that give a place its identity. Understanding a home therefore means looking beyond its floor plan or sales history to consider the lifestyle and community that come with it.

This broader perspective also gives local stories a meaningful role. Suburbs are constantly evolving, influenced by new businesses, changing demographics, design trends and the people who choose to make them home. Content that explores these forces can help readers build a richer understanding of an area, whether they are preparing to move there or simply want to stay informed about their own neighbourhood.

The same is true of market information. Sales results and property data are most useful when they are accessible and supported by context. Bringing recent results together with insights and local knowledge can help people follow the market on their own terms, without suggesting that every visit must lead immediately to a transaction.

For Atlas, this thinking forms part of “Real Estate, Reimagined”, its broader brand campaign focused on using brand, creativity and technology to deliver a more relevant, useful and human real estate experience. Rather than treating technology as an end in itself, the emphasis is on how it can make property easier and more engaging to explore.

That human focus matters because real estate decisions are often closely tied to significant moments in people’s lives. A move may be connected to a growing family, a new job, a change in lifestyle or a long-held ambition. Even outside those milestones, homes and neighbourhoods remain a source of interest because they reflect how people live and how communities develop.

Atlas’s approach makes room for both the practical and aspirational sides of that interest. Readers can seek out information with a clear goal in mind or browse simply because a property, place or story captures their attention. In either case, they can move easily between homes, results, market perspectives and local inspiration.

The ambition is not to redefine why people care about property, but to reflect the many reasons they already do. By combining useful information with engaging editorial content, Atlas is creating a place for buyers, sellers, homeowners, investors and the property-curious alike.

Whatever brings you to property, discover more at atlas.com.au

Commercial Property Market Set to Rebound Through 2026

Knight Frank’s latest Horizon 2025 update signals renewed confidence in Australian commercial real estate, with signs of recovery accelerating across cities and sectors.

Atlas Real Estate is reimagining how people connect with property, combining listings, market insights, local stories and lifestyle content in one destination for those buying, selling or simply exploring the market.