Petersham is one of those inner-west suburbs where neighbourhood character still drives commercial value. If you’re investing or preparing to sell, think of Petersham as a mix of two narratives: a tight, walkable village strip (Stanmore Road / Audley Street / New Canterbury Road) that supports retail, cafés and personal services, and a quieter fringe of light-industrial and small warehouse sites that sit close to Parramatta Road and the rail line.
Road access and transport are a major selling point. Petersham sits on Parramatta Road (a major arterial road) and is a short hop to the M4 and city-bound arterial routes, which makes it attractive for last-mile operators and trades businesses. Stanmore Road/New Canterbury Road bisects the suburb, giving easy access to Enmore and Newtown as well as suburbs south of the Cooks River.
Petersham Station is within a few hundred metres of the main shopping strip, so retailers, dentists, allied health and professional offices all benefit from both foot traffic and easy employee commutes.
Petersham is still dominated by shop top mixed-use properties along Stanmore Road, New Canterbury Road and Audley Street; that is, ground-floor retail or food premises with residences or small offices above. There are pockets of light industrial / warehouse stock too (more so as you move towards Parramatta Road), but Petersham is less industrial than some inner-west pockets like Marrickville or parts of Marrickville’s northern fringe. For investors, that means a steady stream of café, convenience retail, medical/allied health and boutique professional tenants rather than large industrial leases. Mixed-use shop tops are the most common commercial asset class here.
Think boutique cafés, bakeries, bottle shops and small supermarkets; allied health and medical suites; accountants, small legal and creative studios; hair and beauty; and a handful of last-mile or light trade businesses such as drycleaners and laundrettes. Those everyday, repeat-visit businesses are the backbone of a Petersham commercial income stream, being predictable, localised and drawing regular foot traffic. Critically, Petersham is home to a large Portuguese contingent with many family-owned businesses that provide stability.
Amenities and lifestyle are a genuine part of the pitch. Tenants and customers value the walkable streets, good cafés, parks and schools nearby: Fort Street and other nearby public schools are part of the local draw and the suburb’s strong community feel. That lifestyle premium helps when leasing to creative firms or owner-occupiers looking for character rather than a CBD address.
The suburb properties are tightly held with mostly long leases. This means we don’t see large, high-profile commercial freehold trades often. The highest recent sales were a mixed-use shop top that sold in May 2025 for $1,190,000 and 550 Parramatta Road, which sold for $1,650,000 in April 2025.
Over recent years, smaller shop top investments have been trading in a range around $1 million locally; prime freeholds push into the upper single millions and beyond depending on size and tenancy.
Bottom line: Petersham’s best investments are shop top mixed-use properties with a strong street presence, stable retail or medical tenants, and clear value-add potential (refurbish, improve tenancy mix or modest redevelopment STCA). For vendors, highlight walkability, transport links and the reliability of essential-service tenants; that’s what local buyers pay for.
As always, when considering an investment in property, you should take into account your financial circumstances and seek advice from your financial adviser before acting.
As dedicated local commercial real estate agents, we can help you extract more value from your commercial property. Please get in touch to discuss your circumstances and assets so we can give you personalised advice. Whether it’s commercial leasing, management or sales, we’re here to help you with your Sydney-based commercial property.
Contact us at Ray White Commercial Sydney City Fringe
When people talk about commercial property on the edges of the Sydney CBD, you’ll often hear the same suburbs mentioned over and over again: Surry Hills, Redfern, Chippendale, Camperdown, Pyrmont and parts of the Inner West. These areas have long been known for their character buildings, creative communities and café-lined … Read more
Retail property in the Sydney City Fringe: insights on shop tops, restaurants/cafés and Parramatta Road exposure for city fringe investors.