Canberra Commercial Market: Government & Beyond

Long seen as a government town, Canberra’s commercial property market is diversifying fast. In 2025, the city is showing signs of maturing into a broader economic centre, with sectors like defence, education, health, and tech contributing to steady commercial demand. Combined with some of the most stable leasing profiles in the country, Canberra is becoming a magnet for long-term investors seeking consistency and growth.

Government Tenancy: A Foundation of Stability

Government departments continue to underpin much of the city’s office market. Canberra boasts the highest proportion of government-leased space in Australia, offering:

• Secure, long-term lease arrangements

• Minimal vacancy volatility

• Predictable rental escalations

This tenant base gives investors access to reliable, high-quality cash flows, with core precincts like Barton, Civic, and Belconnen dominating the leasing map.

Emerging Sectors: Defence, Cyber, and Education

Beyond public administration, Canberra is building a strong reputation in:

• Defence and cybersecurity: Clusters of tech contractors and startups near Russell and Brindabella Business Park

• Education and research: Anchored by ANU, the University of Canberra, and affiliated innovation precincts

• Health and aged care: Expansion of hospitals and private health campuses

These industries are creating consistent demand for office, tech-space, and specialist medical suites.

Industrial Space in the Capital Region

While industrial land within the ACT is limited, surrounding regions like Fyshwick, Hume, and Mitchell continue to attract warehousing, trade, and logistics businesses. Demand is strongest for:

• Trade supply and showroom formats

• Data centres and light industrial users

• Secure, multi-tenant industrial estates

Developers are exploring expansion sites on the ACT border and in Queanbeyan to meet growing demand.

Retail: From Civic Core to Suburban Centres

Canberra’s retail mix is evolving, driven by:

• Higher density residential development in the inner suburbs

• Growth in local centres like Gungahlin, Woden, and Tuggeranong

• Experiential retail, dining, and lifestyle precincts

While Civic has seen some softening, lifestyle-based retail remains strong in areas with increasing residential foot traffic.

Planning and Development Support

The ACT Government continues to prioritise urban renewal and densification. 2025 policy and planning trends include:

• Encouraging mixed-use developments with a commercial component

• Supporting green building initiatives

• Fast-tracking strategic sites for development approvals

This pro-development stance is helping unlock underutilised land and stimulate private sector activity.

Investment Perspective for 2025

Canberra’s appeal lies in its balance of low risk and consistent growth. In 2025, active investors are:

• Targeting secure government-leased assets

• Partnering on new office and medical developments

• Exploring suburban retail repositioning

Yields remain competitive, and properties with high NABERS or green credentials are attracting premium pricing.

Final Thoughts

Canberra’s commercial property market in 2025 offers a compelling mix of security and emerging sector momentum. While government leases provide a dependable backbone, growth in education, tech, and health is opening the door for broader investment strategies.

For investors and developers seeking low-volatility, high-stability assets in a growing city, Canberra delivers consistency with upside.