Is ‘Back to Work’ Changing the Outlook for Commercial Properties in Western Sydney?

There’s been a lot of talk lately about whether people are really heading back to the office, and what that means for commercial property owners. While city-centre headlines paint a gloomy picture, the view from Western Sydney is a little different.

Here’s what we’re seeing: things are shifting, yes, but not falling apart. In fact, for commercial property owners in Greater Sydney, this new phase is full of opportunity… If you know where to look.

Industrial: Quietly Booming

Let’s start with industrial property that continues to forge ahead in Western Sydney , with numbers to justify its strength! The industrial sector remains the standout performer in NAB’s latest survey, with confidence tipped to climb to +46 (net balance index score) over the next 2 years. In layman’s terms, NAB is expecting industrial property businesses to be strong over the next 2 years, with a large majority anticipating better conditions ahead.

So what’s driving this? 

Western Sydney is now the logistics heart of Greater Sydney, being the base for where a lot of businesses want to be, especially those in warehousing, e-commerce, light manufacturing, and freight.

Add to that the $25 billion+ being invested in infrastructure, including the new Western Sydney Airport and associated road upgrades and it’s no wonder industrial sites are in high demand (NSW Government Infrastructure Statement 2024–25).

For investors, this means rental growth is strong, tenant demand is stable, and turnover is low. In plain terms: well-managed industrial assets are rock solid right now.

Offices: It’s About Quality, Not Quantity

Across Australia, commercial property remains near 8 year highs, with every state and sector now in positive territory (NAB Commercial Property Survey, June 2025). 

This is a good sign that confidence is returning. Not just in CBDs, but also in suburban business districts like Parramatta, Norwest and Liverpool. But those numbers don’t tell the full story. What we’re really seeing is a shift in how businesses use office space. Hybrid work is here to stay. Most teams aren’t coming in five days a week. But that doesn’t mean offices are dead. It means tenants want better offices: ones with natural light, breakout areas, easy parking, and a shorter commute for staff.

It’s part of what’s being called a “flight to quality” tenants are leaving outdated spaces and upgrading to offices that are aligned to the way people work now (Property Council, 2025).

At Solve, we’re seeing strong interest in suburban and fringe offices that feel more local and less corporate. Smart owners are responding by improving fit-outs, adding end-of-trip facilities, and being flexible with lease terms. That’s where the demand is going.

And with the NAB Commercial Property Index holding strong at +20, the market is confidently suggesting stability and optimism, promising solid opportunities for investors and owners alike.

Retail: Local Is the New Prime

Retail has had a tougher run nationally, but in Western Sydney, community-focused shopping centres are bouncing back and attracting some serious interest.

As seen overall from a commercial property perspective, Western Sydney is still booming, families are moving in, schools are being built, and local retail is now classified by the community as essential infrastructure. Small-to-medium shopping strips that serve their communities are seeing stronger returns than many big mall assets.

So, What’s the Takeaway for Owners?

The return to the office has been real, but the time away from the office has created new motivations.

Tenants want flexibility, quality, and locations that work for their teams and customers. Work environments are shifting toward more ‘lifestyle-friendly’ arrangements. Industrial is booming because logistics, delivery hubs and warehousing is more important than ever. And retail, when it’s local, useful, and accessible is holding its own.

But none of this happens by accident. In this market, good property management matters more than ever. The right advice, regular lease reviews, and proactive maintenance can make the difference between holding a great asset… and watching the value of a commercial investment slip away.

We’re not saying it’s all smooth sailing. But with the right tenants, a strong management plan, and an understanding of what people actually want from the spaces they use… It’s still a smart place to invest and grow.

At Solve Commercial, we give honest, practical advice based on what we’re seeing in our own backyard, and how our clients can continue to deliver stable returns, whether that’s by maximising a sale, gaining a new tenant, or managing an asset for long-term profit.

Want to talk through your property’s potential? Get in touch. No pressure, no jargon, just real advice.