Business Insights | The ROI of community in thriving precincts

The definition of a precinct is an area where businesses cluster together to foster creativity, innovation, productivity, and collaboration in their community. Every major Australian city has at least one precinct, but not all of them reach their potential. 

Why is this and why is it a strategic business imperative? It’s a question recently posed at CBRE’s Think Future event, a series of expert panel talks designed to equip the next generation of industry leaders with the knowledge and connections they need to thrive.  

In the latest of these conversations, Sydney independent Councillor, Jess Miller, discussed the intricacies of activating precincts and how commercial property has a major responsibility in helping to facilitate spaces for successful communities. 

Establishing the precinct 

Change is the fundamental component of establishing a precinct, according to Jess.  

“Doing something significant requires tension, and it is only through the process of recognising and resolving tension that something new or changes can emerge.” 

This fundamentally means that precincts don’t exist within a vacuum; instead, there are forces such as social, economic, environmental and political, that shape what a precinct is, and what it may be in the future.  

“In my role – at the local level of decision making, I am aware of macro trends and pressures happening at a Federal and State level, but I’m most sensitive and responsive to the immediate needs of the community within which I operate.  

“The precinct level is hyperlocal and largely determined by local planning instruments that formalise height, scale, trading hours and usage,” says Jess.  

“At the city level, we set the strategic vision as to what can happen where and till how late.” 

Now more than ever, making meaningful changes at the precinct levels also requires foresight on housing and growth targets, key factors that Jess calls “forces and dynamics”. 

Beyond this, commercial property also has a major role to play. And it comes with challenges and opportunities. 

Why Thriving Precincts Matter Now 

For investors: In a saturated market, generic assets yield diminishing returns and face higher vacancy risks, making differentiation crucial. Thriving, experiential precincts offer differentiated investments with superior long-term value appreciation, attracting resilient tenants and future-proofing portfolios. 

For Developers: Navigating complex planning landscapes and community skepticism often delays projects, inflates costs, and creates reputational challenges. Proactive placemaking and genuine community engagement can streamline approvals, mitigate risk, and attract capital by creating demonstrably desirable and viable developments. 

For Occupiers: In the battle for talent and relevance, a generic office or retail location fails to inspire employees, attract customers, or reinforce brand identity in a hybrid world. A dynamic, amenity-rich precinct environment transforms the workplace into a talent magnet, enhances employee well-being, and strengthens corporate brand, making the office a destination. 

The ask of commercial property people? 

For commercial property professionals aiming for meaningful and profitable roles in precinct development, a deep understanding of the local operating context and community is paramount.  

As Jess Miller advises, “Get to know the neighbourhood. They will know who the naysayers and ‘yaysayers’ will be.  

“Developers, while catalytic, can avoid community resistance by recognising the opportunity in providing accessible spaces for creatives and community groups, especially for underutilised assets. Generosity and creativity, particularly through low or no-cost ‘meanwhile use’ tenancies, build crucial social capital and effectively activate precincts.”  

Ash Nicholson of CBRE underscores this, stating that "the most successful precincts are born from strong partnerships between government and the private sector," when it comes to aligning commercial goals with community outcomes for economically vibrant and socially inclusive places. 

Participating in problem solving 

The City of Sydney along with most local governments are constantly consulting. Given that commercial property professionals have an acute insight into how things work, there are important opportunities to have an influence on.  

“If you think something is a bad idea, say so. If you have a better idea, share it. You know the property sector better than anyone else; you know what makes economic sense; you know where the pain points are; and you know what will make a project viable. 

“Be enthusiastic and don’t always play it safe as there’s always a way for a different vision. And most importantly, invest in your community. Precincts have no magic formula and good places don’t have to be shiny new, they just need character, heart and soul. 

“If we can find ways to instill all of that as part of the change, it won’t just make the space valuable financially. It makes it beautiful socially, culturally and a place people want to hang out in, invest in, and work in.” 

These principles are not just theoretical. CBRE’s next generation of leaders are already putting them into practice. 

Secret to thriving precincts 

The next generation of property leaders also shared their insights on the night. Personal experiences from each respective field showcased not just their understanding of commercial property, but also their knowledge of precinct building.    

Lana Edwards, Associate at CBRE Development & Infrastructure, spoke about the revival of White Bay Power Station and its successful precinct underpinned by five key pillars: Mixed use innovation, connectivity with Metro and active transport links, adaptive re-use as an arts cultural hub, sustainable design, and community focus. 

“The Balmain and Rozelle community are passionate and vocal, so it was important to engage with them along the full journey, making sure everything we did was underpinned by cultural and community aspects,” says Lana.   

“Everything we did there was never just to fix the building, but to enable a future precinct.” 

Sam Embling, a CBRE retail expert, highlighted the importance of identity. 

“Building community is more important than ever now for retailers to connect with their customers and build a brand and identity. And one key area to this is precincts.  

“Brands that want to build their community often do this through collaboration and product launch events. This is a key way to connect with their customers and there is no better way to do it than by working with their landlords as a partner to leverage their precinct to create these events. Precincts help create brand identity and improve the value of the landlord's asset.”   

Tom Gibson, a CBRE hotels expert, says that the position of hotels in a precinct is pivotal.  

“It creates an atmosphere with food and beverage and there’s a reason to go there. The biggest thing for hotels is why would I stay there? It’s about a brand and image and being part of a community precinct.  

“Having a newly established precinct in an easily accessible location that is surrounded by other amenity makes it very attractive from a commercial standpoint.” 

Thriving precincts don’t occur by chance.  They are the result of intentional collaboration, bold ideas, and a shared commitment to community. As the property sector continues to evolve, the partnership between government and industry will be more important than ever in shaping places where people truly want to live, work, and play. 

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Enjoyed these expert insights? Our next Think Future event will be held on Wednesday, 23rd July from 5:00pm to 7:30pm at Mary's Underground (29 Reibly Place, Sydney). To attend the event for free, simply email [email protected] to secure your spot. It’s going to be a revealing conversation surrounding the future of how we work through harnessing AI & technology.