North Shore Commercial Property Market Wrap-Up 2025

As 2025 draws to a close, Sydney’s North Shore continues to demonstrate resilience in a challenging commercial property environment. Leasing activity has strengthened, investor confidence remains selective, and the market’s defining theme is a clear flight to quality. Businesses, investors, and landlords alike are adjusting to a landscape where connectivity, sustainability, and building quality matter more than ever.

Leasing momentum across the North Shore, including North Sydney, St Leonards, Chatswood and Macquarie Park, improved through the year, with tenant enquiry levels returning to notably strong levels. Incentives remain high across the market, although well-located prime assets continue to attract tenants willing to pay a premium for quality, resulting in modest face rent growth and steady absorption.

On the investment front, 2025 has been marked by cautious confidence. With higher interest rates and tighter lending conditions, buyers have been selective, focusing their attention on prime, well-located assets with strong tenant covenants, sustainability credentials, and longer lease terms. Secondary properties, on the other hand, have faced downward pressure on yields and longer sales campaigns as investors adopt a more risk-aware approach. Core precincts such as North Sydney, Chatswood, and Macquarie Park have continued to perform relatively well, supported by infrastructure projects like the new Victoria Cross Metro Station, which is set to further enhance accessibility and long-term value.

In terms of submarket performance, North Sydney and St Leonards have benefited from major transport and precinct upgrades, though leasing absorption remains competitive outside of premium towers. Chatswood continues to evolve as a mixed-use hub, with growing interest in developments that blend office, retail, and residential components. Macquarie Park remains a preferred destination for technology and life sciences occupiers, although generous incentives are still required to secure commitments in this market segment.

Overall, the North Shore closes 2025 as one of Sydney’s most stable and opportunity-rich commercial and retail precincts. The combination of strong infrastructure investment, evolving tenant preferences, and selective investor appetite has created a market defined by quality, connection, and confidence. As we move into 2026, the focus will remain on adaptability and long-term value — with the North Shore continuing to stand out as a key destination for business and investment activity in Sydney’s commercial landscape.