Northcote VIC: Inner-Urban Commercial Property Tightens as Industrial Sites Change Hands

Northcote has long been known for its inner-city character, creative energy, and eclectic residential mix — but 2025 marks a shift in its commercial property story. Following the recent $5.5 million sale of an industrial landholding at 195–199 Heidelberg Road, developers and investors are once again looking closely at Northcote’s potential for small-format commercial developments, strata workspaces, and mixed-use conversion. With limited land supply and strong population density, Northcote commercial property is seeing renewed attention — particularly where underutilised industrial stock can be repurposed for modern outcomes.

Strategic Location With Built-In Demand

Northcote’s proximity to the Melbourne CBD and long-standing transport infrastructure gives it a location edge. Add to that a high-income, creative demographic and the ongoing evolution of its high streets, and the suburb becomes one of the inner north’s most sought-after places to develop or reposition.

• Just 7km from Melbourne CBD, Northcote is connected via train, tram, and arterial roads

• The suburb is anchored by High Street’s hospitality and retail strip, supported by strong local loyalty

• Inner-urban demand is driven by professional services, trades, boutique health, and creative operators

Industrial Conversions Create New Commercial Opportunities

Northcote has limited traditional commercial zoning, which is why ageing industrial stock is now under the spotlight. Buyers are targeting corner blocks and freestanding warehouses for future office, medical, and retail applications — with a particular focus on mixed-use conversion.

• Older buildings along Heidelberg Road, Arthurton Road, and St Georges Road are being reviewed for repurposing

• Recent sales reflect a trend toward subdivision, adaptive reuse, and DA-led uplift

• The focus is on functional character buildings with off-street parking and flexible layouts

Local Planning Supports Smart Redevelopment

While strict heritage overlays exist in some areas, Darebin Council continues to support smart urban renewal — particularly where new projects enhance the local economy, preserve architectural character, and reduce congestion.

• Planning policy encourages active frontages, workplace diversity, and walkable design

• Council is targeting sustainable developments that support cycling infrastructure, solar, and reduced car dependency

• Developers working in line with these goals are receiving support for mid-rise commercial or office applications

Tight Vacancy Keeps Rents and Values Rising

As stock tightens across Melbourne’s inner north, small-format commercial space is becoming increasingly difficult to find. Local businesses are willing to pay a premium for well-located space close to public transport and community amenity — keeping interest high for new or repositioned assets.

• Sub-500sqm tenancies for retail, health, or creative use are leasing quickly with minimal incentives

• Strata-titled office suites are outperforming due to local owner-occupier interest

• Properties with dual street access and on-title parking are seeing high competition from tenants and buyers alike

Northcote’s Commercial Future is Compact and Creative

Unlike large-scale industrial estates, Northcote’s commercial evolution will be driven by boutique projects. The market favours layered, integrated development — think upstairs office, ground-floor retail, and behind-the-scenes production or studio use — rather than monolithic warehouse delivery.

• Developers are targeting three-storey outcomes with flexible commercial ground floor footprints

• Medical, allied health, and flexible workspace are top demand sectors across the suburb

• Northcote’s culture of creativity and community makes it ideal for niche commercial applications and owner-led design

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we help reposition tight urban blocks with clear messaging, smart visuals, and powerful leasing tools. From feasibility visuals to strata campaigns and pre-leasing programs, we support inner-city commercial property projects with targeted, location-driven marketing.