ADAM LEISHMAN — THE COMMERCIAL GUYS
The Market Is Starting to Move Again
There has been plenty of talk across the industry recently about how busy the commercial property market is.
We are certainly seeing an increase in activity, but the more accurate observation is that the market is beginning to move again.
After an extended period of caution, more tenants are progressing from enquiry to negotiation and, importantly, from negotiation to commitment. Our lease placement activity has increased, businesses are making decisions again, and some of the hesitation that characterised the earlier part of the year appears to be easing.
At the same time, more vacancies are emerging. Some are being created through normal business movement, while others are unfortunately the result of tenants downsizing, closing or being unable to continue trading.
This does not mean the market has returned to balance. However, it does suggest that it is moving back in that direction.
Leasing Activity Is Beginning to Lift
For much of this year, tenants have been cautious.
Businesses have taken longer to inspect, compare properties, obtain advice and decide whether a move is financially worthwhile. In many cases, tenants have remained in their existing premises because the cost and uncertainty of relocating outweighed the potential benefit.
That caution has not disappeared, but we are starting to see more tenants move forward.
There has been an uptick in lease placements, along with an improvement in the quality and seriousness of some enquiries. More businesses appear prepared to make decisions where the property, cost and lease structure align with their needs.
This should not be confused with a return to the frantic leasing conditions experienced in previous years. Tenants still have more choice, they are comparing alternatives carefully, and they are prepared to walk away where the numbers or terms do not make sense.
The positive change is that they are participating again.
At the same time, additional vacancies are entering the market through relocation, contraction, restructuring and business failure.
For an individual owner, an unexpected vacancy is never welcome. Across the broader market, however, the combination of renewed tenant movement and more available stock is creating greater activity and more genuine negotiation.
The market is not balanced yet, but it is moving towards it.
Everyone Is Drilling Further Into the Lease
One of the clearest changes we are seeing is the level of scrutiny being applied before a lease is completed.
The conversation is no longer limited to the rent, lease term and commencement date.
Landlords are looking more closely at the entity entering into the lease, the financial strength of the tenant, the people behind the business and the security being provided.
This includes greater focus on director or personal guarantees, bonds, bank guarantees and ensuring all security documents are properly completed before possession is provided.
The increase in business failures and financial pressure is reminding owners that a signed lease is only as dependable as the tenant’s ability to perform and the security supporting its obligations.
Tenants are also drilling further into the numbers, particularly around outgoings and the total cost of occupying a property.
They are asking more detailed questions about which outgoings are recoverable, how their proportion is calculated, whether charges are based on a budget or actual expenditure, how reconciliations are handled and what the true monthly commitment will be after rent, outgoings and GST.
This is a sensible development.
Two properties with similar asking rents can have very different total occupancy costs. Clear information at the beginning of the negotiation gives both parties a better chance of reaching an agreement that remains workable throughout the lease.
The best outcomes occur where the lease structure is transparent and both parties understand exactly what they are agreeing to.
New Anti-Money Laundering Checks Have Arrived
The new anti-money laundering and counter-terrorism financing requirements for designated real estate services commenced on 1 July 2026.
There has been plenty of industry discussion about the additional cost, complexity and administration these requirements may create.
In practice, we have found the introduction relatively seamless.
The process adds another compliance step to a sales transaction, but we have been able to incorporate the required checks into our existing workflow without causing unnecessary delays or headaches for clients.
Sellers should now expect to provide identification and, where a property is owned through a company, trust or other structure, additional information may be required to establish ownership and control.
The key is to start early.
Where the correct documents are collected at the beginning of the appointment, the checks can be completed efficiently and without distracting from the transaction itself.
Reliable Market Data Has Never Been More Important
The current market is producing signals that can appear contradictory.
Lease placements are increasing, but vacancies are also emerging. Tenants are returning to the market, but they remain cautious. Some properties are attracting strong enquiry, while similar stock may take much longer to lease.
This is exactly the type of environment in which reliable, current market intelligence becomes critical.
It is easy to mistake an increase in activity for an increase in market strength. It is equally easy to see several new vacancies and assume that an entire market has weakened.
Neither conclusion necessarily reflects what is happening beneath the surface.
TCG IntelliPulse combines information from multiple sources with the activity we see directly through leasing campaigns, inspections, negotiations and completed transactions.
It helps us distinguish between general enquiry and genuine demand, advertised rents and completed outcomes, and temporary vacancy movements and broader market shifts.
Commercial leasing data is often incomplete. Not every lease is publicly reported, incentives are rarely disclosed, and advertised rents do not always reflect the final deal.
In a changing market, the advantage does not come from being the loudest about how busy things are.
It comes from understanding what is actually happening.
Final Thoughts
July has delivered some encouraging signs.
Tenants remain careful, but more are progressing through to lease commitments. Lease placements are lifting, businesses are making decisions again, and there is a growing sense of movement across the market.
At the same time, additional vacancies are emerging, creating more choice and more negotiation.
We are not yet back to a balanced market, but we appear to be moving in that direction.
As that happens, the detail matters more than ever. Landlords are examining security, tenants are examining outgoings, sales transactions now involve additional compliance requirements, and accurate market intelligence is becoming increasingly important.
The market is not suddenly booming.
It is beginning to function more normally again, and that is a positive direction.
