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Melbourne’s Industrial Market Is Resetting. Here’s What Matters Right Now.
Melbourne’s industrial property market has entered a new phase. After several years of rapid growth, conditions are normalising, shifting the focus from broad-based expansion to more targeted, location-driven opportunities.
A recent industry report by AND Property highlights where the market sits heading into 2026, and more importantly, where value is starting to concentrate.
A Market Adjusting, Not Retreating
Leasing demand across Melbourne’s industrial sector remains resilient, supported by logistics, fulfilment and advanced manufacturing users. While new supply has eased materially, this slowdown is helping rebalance conditions and support rental stability in well-located precincts.
The result is a market that remains fundamentally strong, but far more selective.
A Clear Two-Speed Dynamic
Industrial performance across Melbourne is increasingly split by location.
Outer western and northern corridors continue to attract large-format users, though timing and tenant demand are now critical considerations. Meanwhile, established south-east and eastern precincts remain tightly held, with limited land availability and consistently strong demand from owner-occupiers and specialised users.
This divergence is reshaping risk profiles and influencing where capital is being deployed.
Infrastructure and Design Are Doing the Heavy Lifting
Major infrastructure projects continue to quietly underpin industrial demand, improving freight efficiency and workforce accessibility. At the same time, expectations around sustainability, energy efficiency and building design have shifted from optional to essential.
Future-ready assets are proving more resilient, attracting stronger demand and better outcomes.
What This Means Moving Forward
As Melbourne heads toward 2026, industrial success is no longer about chasing scale. It’s about precision, timing and execution.
Opportunities still exist, but they favour well-located sites, informed strategies and developments aligned with how occupiers are actually using industrial space today.
To get the full insights on your free report access here
Report hosted by Instadocs