In today’s rapidly evolving property landscape, commercial real estate continues to shift in response to global and local influences. A prime example of current buyer interest is 23A Gladstone Street, Moonee Ponds, VIC 3039—a property that reflects a growing appetite for flexible, well-located assets. With rising demand for sites that offer mixed-use potential, investors are drawn to addresses like this, which blend accessibility, functionality, and development opportunities. As real estate dynamics change, understanding emerging trends is essential for investors, tenants, and developers alike.
Rise of Mixed-Use Developments
Mixed-use properties are gaining significant traction in Australia’s commercial property market. These developments, which often combine retail, residential, office, and hospitality in a single footprint, offer both economic resilience and lifestyle appeal. They allow landlords to diversify their tenant base, which can provide greater stability in fluctuating markets. This model is especially appealing in suburban hubs, where demand for all-in-one destinations is increasing post-pandemic.
Demand for Flexible Workspaces
The traditional office space is undergoing a transformation. With remote and hybrid work models now entrenched in corporate culture, businesses are seeking adaptable spaces that can grow or contract with their teams. This has given rise to demand for shared office hubs, serviced suites, and co-working environments. Tenants value flexibility and short-term leasing arrangements, as well as amenities that support collaboration and well-being. As a result, landlords are redesigning floorplans to reflect these needs, often converting conventional layouts into open-plan or modular concepts.
Sustainability and Green Infrastructure
Environmental responsibility is no longer a secondary concern—it’s a major driver of value. Properties with energy-efficient systems, green certifications, solar panels, and water-saving installations attract both investors and tenants. Sustainable commercial buildings often benefit from lower running costs, improved tenant retention, and higher long-term returns. Developers are integrating green design not only to comply with stricter regulations but also to meet the expectations of environmentally conscious businesses and consumers.
Technology Integration
Smart building technology is changing how commercial properties operate. From automated lighting and climate control to AI-driven security systems and remote building management, technology enhances both efficiency and tenant experience. Occupiers appreciate the convenience of digital access systems, data-driven energy tracking, and integrated communications platforms. For landlords, these technologies reduce operating costs and enable more responsive property management.
Regional Growth and Urban Fringe Expansion
While inner-city commercial real estate continues to hold value, there is a notable shift toward regional centres and suburban business precincts. Rising metropolitan prices and improved infrastructure have made outer-city areas more viable for businesses. Suburbs like Moonee Ponds, for instance, are benefiting from this trend. Locations that offer strong transport links, community amenities, and lower entry costs are appealing to both small businesses and larger operators looking to decentralise.
Adaptive Reuse and Heritage Revitalisation
In areas where development land is scarce, adaptive reuse of older buildings is emerging as a smart solution. Converting industrial warehouses into creative office spaces or retrofitting heritage buildings for modern retail are cost-effective ways to bring character and uniqueness to a site. These projects often appeal to boutique tenants and can command premium rents. Heritage zones are being reimagined, not replaced, allowing developers to preserve architectural integrity while responding to market needs.
Retail’s Strategic Shift
Retail property, once perceived as volatile post-COVID, is finding its footing again—but with changes. Traditional high street shops are making way for experience-driven retail, health services, and food offerings that cater to evolving consumer habits. Strong-performing locations are those near public transport or within busy neighbourhood centres. The blend of online and offline shopping has also encouraged businesses to adopt smaller footprints with click-and-collect models, reshaping what ‘successful’ retail space looks like.
Industrial and Logistics Boom
One of the fastest-growing segments in commercial real estate is industrial and logistics. The explosion of e-commerce, coupled with supply chain recalibrations, has led to heightened demand for warehousing, fulfilment centres, and last-mile delivery hubs. Investors are targeting properties with high-clearance warehousing, truck access, and proximity to major arterials. Demand is so strong that some retail and office properties are being repurposed into light industrial uses where zoning permits.
Inflation and Interest Rates
Macroeconomic factors, especially interest rates and inflation, are impacting investor behaviour. Higher borrowing costs mean many buyers are scrutinising yields and seeking lower-risk assets with long-term tenants. On the flip side, rising inflation has prompted some landlords to reprice rents more aggressively, especially in tightly held markets. As the market stabilises, strategic investors are focusing on value-adding opportunities rather than speculative buys.
Emphasis on Tenant Experience
Across asset classes, tenant experience is becoming a key point of differentiation. Property owners are realising that well-maintained buildings with modern amenities, good lighting, end-of-trip facilities, and responsive management are more likely to retain quality tenants. Enhancing the user experience also helps build brand equity for landlords, making their assets more competitive in saturated markets.
All in all, whether it’s through sustainable design, smart tech, or flexible leasing models, the properties that adapt will lead the way in Australia’s next real estate chapter.