Navigating Changing Commercial Real Estate Market Trends in 2025

For brokers, staying informed and agile in the evolving commercial environment is crucial. In this blog, we'll explore the key trends that will shape the CRE market in 2025 and offer insights on how brokers can adapt to stay competitive and continue delivering value to clients.

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1. The Continued Shift to Hybrid and Remote Work: Impact on Office Spaces

The COVID-19 pandemic accelerated the transition to remote and hybrid work models, and this shift is likely to have a lasting effect on the demand for traditional office spaces. While some companies may return to a full in-office model, many will continue embracing hybrid arrangements, offering employees more flexibility.

What does this mean for commercial brokers?

• Decreased demand for large office footprints: Expect an increase in demand for smaller, flexible office spaces. Companies are increasingly looking for hybrid workspaces, including hot desks, shared office spaces, and more agile lease terms.
• Co-working and flexible office space: Companies will continue embracing co-working spaces to provide employees with flexibility. Brokers should explore relationships with flexible office space providers, such as WeWork or Regus, and understand how to incorporate them into their offerings.
• Opportunity for repurposing: As businesses downsize, some existing office buildings may face vacancy or underutilisation. Brokers can help clients identify opportunities for repurposing these spaces into multi-use facilities, such as residential or mixed-use developments.

Brokers who understand these shifts can better advise their clients on how to navigate changing needs, adapt to new working trends, and maximise the value of their office space investments.

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2. Sustainability and ESG (Environmental, Social, and Governance) Investing

Sustainability is no longer just a buzzword - it’s becoming a driving force in the commercial real estate industry. ESG investing is gaining significant traction, with investors, tenants, and governments demanding more sustainable and energy-efficient buildings.

What does this mean for commercial brokers?

• Green building certifications: Properties with green certifications such as LEED (Leadership in Energy and Environmental Design) are expected to see higher demand. Brokers should become well versed in energy-efficient properties and the certifications that make them attractive to eco-conscious investors and tenants.
• Sustainable design and energy efficiency: With energy costs on the rise, businesses are looking for ways to reduce energy consumption. Brokers can benefit by connecting clients with buildings that incorporate renewable energy solutions, smart building technologies, and efficient HVAC systems.
• Carbon neutrality and tenant demand: Increasingly, tenants are prioritising sustainability when selecting office spaces. Brokers should be ready to help clients navigate the complexities of eco- friendly properties and advise on the long-term value these investments can bring.

 In 2025, brokers who can guide clients toward green building opportunities, understand sustainability certifications, and offer advice on energy-efficient options will be well-positioned to capitalise on growing demand.

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3. Rise of Mixed-Use Developments

The trend toward mixed-use developments continues to grow, offering a blend of commercial, residential, and retail spaces within a single development. These developments cater to the evolving needs of urban populations who are seeking convenience and walkability.

What does this mean for commercial brokers?

• Increased demand for versatile spaces: Investors are drawn to mixed-use developments because they diversify revenue streams. In 2025, expect to see more developers creating spaces that combine offices, retail stores, restaurants, and even residential units in one location. Brokers should be prepared to work on mixed-use projects and understand the intricacies of leasing and selling these properties.
• Urban revitalisation: Cities are increasingly embracing mixed-use projects to revitalise neighborhoods and attract a broader range of tenants. Brokers should stay informed about urban renewal projects and identify opportunities in developing areas.

Mixed-use developments are becoming the norm, and brokers who can help clients navigate this growing sector will be in a prime position to capitalise on the opportunities these projects present.

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4. Technology and PropTech: The Rise of Data-Driven Real Estate

The Australian CRE market is also seeing the increasing use of PropTech - tools and technology that improve the efficiency and transparency of real estate transactions. For example, brokers are using artificial intelligence (AI) to predict property values and virtual tours for prospective tenants and buyers. Technology adoption is expected to grow rapidly, and brokers who embrace these innovations will be ahead of the curve.

What does this mean for commercial brokers?

• Data-driven decision making: With access to powerful data analytics, brokers can provide more accurate property valuations, predict market trends, and offer better investment advice. Technology will allow brokers to model various investment scenarios and help clients make informed decisions.
•  Virtual property tours and digital platforms: Virtual tours have become a standard tool for showcasing properties to prospective buyers and tenants. In 2025, brokers must leverage 3D virtual tours and augmented reality (AR) to offer immersive property experiences.
•  Blockchain for secure transactions: Blockchain technology has the potential to streamline commercial property transactions by providing transparent, secure, and fast deals. Property Exchange Australia (PEXA) is a key player in digital property settlements, and brokers should stay informed on how blockchain is streamlining real estate deals. By embracing these technologies, brokers can enhance their productivity, improve client service, and streamline the process of structuring and completing deals.

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5. Increased Demand for Industrial and Logistics Properties

E-commerce continues to grow, driving demand for industrial and logistics properties such as warehouses and distribution centers. As businesses look to improve supply chains and deliver goods more efficiently, the need for strategically located industrial spaces is expected to increase.

What does this mean for commercial brokers?

• Warehousing and distribution hubs: With the boom in e-commerce, brokers should focus on identifying prime locations for warehouses and logistics hubs. Key areas include proximity to major highways, ports, and airports.
•  Last-mile delivery hubs: As e-commerce giants seek ways to reduce delivery times, last-mile hubs located near urban areas will see increased demand. Brokers should be well-versed in these niche properties and how to navigate the unique needs of logistics clients.

For brokers who specialise in industrial properties, 2025 will bring exciting growth opportunities as demand for logistics and distribution spaces rises.

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6. Affordable Housing: Meeting the Growing Demand for Residential Space

The issue of affordable housing has been a growing concern in Australia’s major cities. Government initiatives, such as the National Housing Finance and Investment Corporation (NHFIC), are being rolled out to support affordable housing projects.

What does this mean for commercial brokers?

• Affordable housing demand: With urban areas like Sydney and Melbourne seeing rapid population growth, brokers should be aware of affordable housing policies and consider helping clients navigate government incentives for affordable residential developments.
• Zoning and planning regulations: Brokers must stay up to date on the changing zoning regulations in key Australian states, especially in areas experiencing rapid growth or urban sprawl.

Commercial brokers who can navigate the complex world of affordable housing and understand the regulatory environment will be able to secure new deals and drive profitability.

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How Connective Supports Commercial Brokers

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At Connective, we understand the unique challenges that commercial brokers face in a rapidly evolving market. As a leading aggregator, our mission is to empower brokers with the tools, resources, and support they need to succeed. Whether it's offering access to a wide range of commercial loan products, providing industry-leading technology platforms, or connecting brokers to key partners, we’re committed to making sure our members are well-equipped to navigate the changing landscape of commercial real estate. Learn more about our Commercial offer here.

Our recent recognition as Commercial Aggregator of the Year 2024 is a testament to our unwavering commitment to supporting commercial brokers. This award underscores our dedication to providing innovative solutions, top-notch customer service, and ongoing educational resources that help brokers stay ahead of market trends.

In 2025, Connective will continue to lead the way by offering cutting-edge tools and insights that help brokers leverage emerging trends in commercial real estate. From data-driven decision-making tools to our expert-led webinars and networking opportunities, we’re here to help brokers seize new opportunities and close more deals. If you are want to partner with a winner in Commercial, enquire with us here.

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