Commercial Investors Turning Their Attention to Village Centres Over Larger Commercial Hubs
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Commercial property investment is undergoing a quiet but significant shift. While larger CBDs like Chatswood still hold value and opportunity, a growing number of investors are now looking to smaller village centres for their next acquisition—and finding strong returns in the process.
We’ve noticed an increase in demand for tightly held commercial pockets in suburbs like Wahroonga, Castle Cove and Artarmon. These areas may once have flown under the radar, but they’re now setting new records as investors seek out high-performing assets in community-driven locations.
The appeal of smaller commercial villages.
Suburban and village-style commercial precincts offer something increasingly important to today’s investors: certainty. With long-term leases, steady tenant retention and vibrant local trade, they represent a safe, stable investment in a market that’s seen its fair share of turbulence in recent years.
“Local investors know these areas,” says Bill Geroulis, Director and Head of Commercial Real Estate. “They grew up with them, they shop there, they walk past these properties every day. That confidence translates into strong bidding and fewer hesitations during the sales process.”
Compare this to larger CBD assets, where buyers often approach with greater caution—questioning the longevity of anchor tenants like banks or conducting more intensive due diligence to hedge against market unpredictability. In contrast, village centre investments are often acquired with minimal fuss or due diligence, driven by familiarity and a deep understanding of the local commercial market and demographics.
Breaking records and exceeding expectations.
One suburb that has captured investor attention recently is Wahroonga. Last month, Shead sold a prominent mixed-use commercial building—best known as the ‘Chargrill Charlie’s building’—for $7.85 million, setting a new suburb record for land rate per square metre. The building had been owned by the one investor for the last 10 years.
Just yesterday, a second property in the same tightly held precinct sold under the hammer for $3.75 million—$250,000 above reserve, exceeding the delighted owner’s expectations. The auction attracted four active bidders and confirms that demand in the area is not only strong, but deep. The unsuccessful bidders are still on the hunt for a property in the area.
“These sales show that investors are not just looking for safe returns—they’re willing to compete aggressively when the right asset in the right location becomes available,” says Bill. “There’s real confidence in these neighbourhoods.”
Village momentum continues across the North Shore.
Recent sales in Castle Cove’s Deepwater Road precinct and the dining strip in Artarmon have seen similarly impressive results. In some cases, buildings have doubled in value in just a few years.
Each of these sales has something in common: strong local tenancy, steady foot traffic and buyers who either live nearby or know the area well. It’s a formula that’s proving highly desirable.
“We’re also seeing more vendors come out of the woodwork,” says Bill. “People who’ve watched these sales unfold and are now thinking, ‘maybe it’s time to take advantage of the momentum’.”
“We must be doing something right,” added Bill. “At our record-breaking Wahroonga sale, a local owner admitted attending the auction purely to put me to the test as a commercial agent––a clever tactic on her part. She subsequently asked me to sell her commercial property.”
What this means for owners and investors.
For owners, the trend highlights the value of holding well-tenanted, village-based assets. For buyers, it’s a reminder that commercial opportunities extend far beyond the traditional CBD locations.
Longer leases, high tenant retention and strong local sentiment make these assets highly bankable—and increasingly competitive. The benefits aren’t just financial. Tenants are happier in village-style precincts, and that often translates to stronger occupancy and more reliable income.
In relation to the recent sale of the Chargrill Charlies building in Wahroonga, Bill says, “The seller not only doubled his money in 10 years but the property was returning around $350,000 a year in rent from its steady tenants, so it was an excellent cash cow for him as well. And cash flow is so important, especially in these challenging times.”
Conclusion.
The current market shift isn’t about abandoning CBD investment—it’s about expanding the view of what strong commercial property performance looks like. At Shead Property, we’re proud to be at the centre of this evolving trend, helping clients identify, secure and maximise value in some of the North Shore’s most promising pockets.
Whether you’re looking to sell, buy or just stay informed, now is the time to take a closer look at Sydney’s north shore village precincts.
To find out more about recent sales or discuss upcoming opportunities, Contact Bill on 0413 100 200 or email bill@shead.com.au.
Interested in getting in touch?
If you're looking for hands-on expertise and peace of mind in managing your commercial property, contact Bill Geroulis on 0413 100 200 or email bill@shead.com.au.
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