Investment volumes hit $51.4 billion in 2025, up 41% year-on-year, signalling growing confidence across retail, industrial and office sectors. With key markets like NSW and QLD leading the recovery, conditions are becoming more favourable for investors. If you’ve been considering commercial property—whether it’s your first purchase or expanding your portfolio—understanding your borrowing capacity and the right ownership structure is key to making it work.
Australian commercial property investment transactions reached $51.4billion in 2025 – a 41% increase on the previous year, according to KnightFrank.
That's a big vote of confidence from investors, and the momentum is being felt across multiple asset classes.
Retail was the standout performer, with investment volumes climbing to $14.3 billion, up 49% on 2024. Industrial assets remained resilient, and the office sector showed some encouraging signs of recovery.
Geographically, New South Wales led much of the recovery, with rolling annual volumes rising from around $16 billion at the start of 2025 to pre-pandemic averages of $22 billion. Queensland has also risen above its long-term average, while Victoria is trending in the right direction.
For investors considering commercial property, the fundamentals are looking more favourable than they have in years.Rising transaction volumes typically signal growing buyer confidence, which can translate into stronger demand, improved asset liquidity and, in some markets, upward pressure on values.
Of course, this doesn't mean every asset or every market is right for every investor. But if commercial property has been on your radar – whether you're looking at your first acquisition or adding to an existing portfolio – now could be a good time to understand what your borrowing capacity looks like and how the right finance structure could support your strategy.
When it comes to purchasing commercial property for your business, one of the first decisions you'll face is how to hold it. Do you buy in your personal name, through a trust or in a company name? Each structure carries different legal, financial and tax implications, and the right choice will depend on your individual circumstances.
For many business owners, purchasing in a company name can offer benefits. Holding property this way can help separate the asset from personal liabilities and may offer more flexibility when it comes to future ownership changes or bringing in partners. It can also simplify matters if the business itself is already structured as a company.
That said, lenders assess company borrowers differently from individuals. They will consider the company’s financial position, including revenue, profitability and existing liabilities, when assessing loan applications.
Factors such as the nature of your business, its trading history, existing debt and the type of property you're purchasing will all influence what's available to you.
Additionally, directors may still be asked to provide personal guarantees, particularly for smaller or newer businesses.
Before proceeding, it is recommended that you seek advice from a finance broker, such as 3LANE Finance, with experience in commercial property finance. We can help you explore lending options and ensure the purchase aligns with your company’s long-term goals.
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