What's driving commercial property sales and leases on the Northern Beaches

General Overview

The third quarter of 2025 marked a period of steady adjustment and renewed realism across the Northern Beaches commercial property market. While enquiry volumes softened compared to the heightened activity seen earlier in the year, the calibre of prospective buyers notably improved. We’re seeing a greater proportion of finance-approved purchasers entering the market, buyers who are well-prepared, decisive, and focused on securing quality assets that align with long-term investment objectives.

Importantly, vendor expectations have become increasingly in line with current market conditions. This alignment between sellers and buyers has created a more balanced, transparent environment;
one where negotiation is efficient, and deals are being structured with confidence on both sides. As a result, transactions are progressing more smoothly, and sale prices are increasingly reflective of true market value rather than aspirational benchmarks.

The recent easing of interest rates has added further stability and optimism. Lower borrowing costs have encouraged both investors and owner-occupiers to re-engage with the market, reassessing opportunities that may have previously been placed on hold. While enquiry levels remain modest, the enquiries that do come through are more meaningful, often from well-informed parties who are ready and motivated to transact. This shift from volume to quality has underpinned a more sustainable market rhythm heading into year’s end.

Looking ahead to the final quarter of 2025, we anticipate continued positive momentum as confidence gradually rebuilds. Stabilising interest rates, coupled with improving sentiment in the broader economy, are expected to drive greater activity through the close of the year. These dynamics are setting the stage for
a stronger, more active start to 2026, one where opportunities
will favour those already positioned and ready to move.

Building Value Through Connection

This quarter, we hosted the Upstate Economic Breakfast and our exclusive Investors Night, bringing together clients, partners and industry leaders. These events delivered expert insights and strategic market knowledge designed to help our clients make informed decisions, uncover new opportunities, and strengthen their commercial portfolios, reinforcing Upstate as a partner in long-term property success.

Market Outlook

The commercial market continued to display healthy resilience as we moved through Q3. With interest rates holding steady and confidence gradually building, we’re seeing consistent activity from both buyers and tenants.

At Upstate Commercial, our local insight and forward-thinking approach ensure you’re always one step ahead, whatever the market brings.

For all your property needs, feel free to contact our team on 02 9971 9000 or visit upstate.com.au