A
ustralian commercial real estate is at a turning point, as listed A‑REITs report stronger performance. Investors are regaining faith: rental income rises, occupancy stays steady, and cap rates are stabilising or improving. The market now differentiates between sectors that have recovered, like retail, and those still lagging, such as office. This split is evident when comparing A‑REIT operating data—particularly net leasing incentives—to recent price movements. Over the last three to four years, most A‑REITs have maintained occupancies above 90 %, while office REITs sit at the lower end of that band, and overall market occupancy remains even lower.