Key trends shaping Australia's commercial market in 2026

In this episode of The Smart Property Investment Show, host Emilie Lauer is joined by Knight Frank's chief economist Ben Burston to explore what 2026 holds for Australia's commercial property market.

Reflecting on 2025, Burston notes a year of recovery across sectors, with retail bouncing back, industrial continuing strong growth, and offices stabilising. Over the last 12 months, investor behaviour shifted, with private buyers diversifying into commercial sectors like childcare, quick-service restaurants, and data centres. Looking ahead, Burston expects steady growth, tempered by interest rate fluctuations, with opportunities for investors to acquire quality assets at attractive yields. State-specific insights highlight Melbourne's long-term potential, while Sydney and Brisbane are set for quicker gains, and construction costs and "high economic rent" dynamics are likely to drive rent growth and stabilise values. Burston sector-specific analysis points to prime offices and industrial infill locations as particularly promising, while dominant shopping centres benefit from tightening supply and population growth. Overall, the duo underscores that strategic, diversified investing and careful due diligence will be key for successful investment in the evolving 2026 commercial property market. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email editor@smartpropertyinvestment.com.au for more insights, or hear your voice on the show by recording a question below.