How E-commerce Is Reshaping Real Estate in 2025
As online shopping continues to dominate consumer behaviour, its influence now extends far beyond retail, making a marked impact on the real estate sector in 2025. From the demand for smart warehouses to the transformation of commercial spaces, this evolving relationship is reshaping how and where we build, invest and live across Australia.
The Transformation of Commercial Real Estate
E-commerce has triggered a major evolution in Australia’s commercial real estate landscape. With more businesses shifting from brick-and-mortar stores to online platforms, demand has dropped for traditional retail outlets in prime locations. Shopping centres and high streets in metropolitan areas are experiencing a reduction in foot traffic, prompting landlords and investors to repurpose these spaces.
Rather than sit vacant, former retail spaces are being converted into mixed-use developments, flexible co-working environments or fulfilment zones. This blend of retail, logistic and residential use reflects the changing priorities of urban developers. It also aligns with emerging consumer preferences for local distribution hubs that reduce delivery times and increase sustainability.
Furthermore, the integration of last-mile delivery requirements is pushing investors to focus on strategically located micro-warehouses. These smaller facilities are often set within dense, urban communities and play a pivotal role in meeting growing same-day delivery expectations.
Industrial Real Estate and the Logistical Shift
Perhaps the most significant transformation lies in the surge of demand for industrial real estate. As e-commerce giants expand, the role of logistics infrastructure has become central to their business models. Industrial properties, including large-scale distribution centres and automated warehouses, are rising in demand across key Australian corridors such as Western Sydney, Melbourne’s outer ring and Brisbane’s south.
This shift is fuelling investment in land rezoning and development for high-tech infrastructure. Properties equipped with advanced automation, robotics and energy-efficient systems are becoming increasingly attractive. These assets not only support streamlined operations but are also aligned with ESG expectations from both consumers and regulatory bodies.
Interestingly, the logistic footprint of e-commerce is far larger than that of traditional retail, requiring more space for every dollar of consumer spending. This is causing a spatial race, where proximity to transport hubs and population centres is critical. Developers and investors are recalibrating their strategies around this reality, placing greater emphasis on connectivity, zoning regulations and future scalability.
Conclusion
In 2025, the influence of e-commerce on real estate is both broad and profound. As consumer expectations evolve, they are reshaping commercial and industrial developments across Australia. Retail spaces are being reinvented, while logistics centres become a vital piece of the property puzzle. The future of real estate is increasingly digital, operationally efficient and embedded within the framework of e-commerce logistics.
