Sydney Commercial Property

Sydney Commercial property generally relates to commercial real estate located in e Sydney CBD but is also applicable to all areas of commercial within Sydney NSW. This can include high rise office buildings, industrial properties (although that is generally referred to as 'industrial real estate' The term can also include medical centres, restaurants, cafes, hotels, shopping malls and retail shopping centers)

In urban locations, a high rise commercial building often multiple uses, such as an offices located above commercial on the ground floor.

Sydney authorities and Town planners commonly maintain strict regulations on commercial zoning, with just about all businesses must be located in a designated commercial area or building zoned at least specifically for commerce.

The term 'sydney commercial' or 'sydney commercial real estate' is generally defines by the zoning given to particular areas in Sydney. The zoning covers the use of 'commercial activity' as opposed to 'residential living' and allows for a higher density of development. The main term allows buildings that are primarily designed to generate a profit where the general public can come and trade.

In some areas of Sydney, the zoning allows for both commercial and residential to co-exist, usually in the form of high rise apartments.

Commercial real estate can be identified as 6 different categories.

  • 1) Retail
  • 2) Office
  • 3) Industrial / Warehouse
  • 4) High Rise apartments
  • 5) Leisure / Hotel
  • 6) Medical centres


There are 3 terms that define Real Estate in Australia. They are;
  • Residential real estate: This is used for residential dwellings.
  • Commercial real estate: This is used for areas carrying on business.
  • Industrial real estate: This is used to zone land for industry.

Commercial Real Estate Definitions



A building that is primarily used for the purpose of transacting business, either directly in the Sydney CBD or areas with designated 'commercial' zoning in Sydney and NSW suburbs.

Sudney Commercial Real Estate This includes shopping centres, petrol stations, office blocks, high rise apartments (although sometimes these have a special CBD zoning)

The Sydney CBD:
The area known as the Sydney CBD, would be zoning 'commercial' or 'CBD' which not only allows for businesses to set up and trade but the building of high rise office and apartments above them. These can be sold by the use of 'strata titled' titles on each individual apartment.

It is purely the areas zoning, determined by the relevant authorities and planners, that determines whether 'commercial activity and building' can take place.

How commercial estate works:
In Sydney, NSW, commercial real estate is leased out to business tenants who pay a weekly rent for the use of the building. The most common form of commercial lease, usually involves set period of time, ie: 3 years, with set rent reviews and increase over the period of the lease. Unlike residential real estate, the Lessee is also responsible for paying all the 'Outgoings' on the building. Outgoings' involves the rates and taxes imposed on the property by local authorities. The tenant, or Lessee, is also responsible for paying all utilities such as water and telephone.

The Landlord, or owner of the commercial property is responsible for the maintenance, insurance and upkeep of the building

Sydney Median Commercial Real Estate Price:
Owing to huge diversity of commercial real estate in a relatively small area, unlike residential real estate, a median price is not used.

Purchasing Commercial Real Estate in Sydney:

Owing to high values of commercial real estate, which can range into many millions of dollars, owning premium commercial property requires a significant amount of equity capital. This is compounded by lending institutions requiring a larger deposit on the purchase of commercial property as opposed to residential property.



Home page