Darwin June 2025 Commercial & Industrial Market Update

Darwin’s commercial and industrial property market in June 2025 continues to move under the radar — but quietly builds strength as defence, energy, and logistics contracts shape the city’s economic foundations. With a unique position as Australia’s northern gateway to Asia, Darwin is seeing consistent tenant activity across trade, port logistics, and infrastructure-related leasing. The government continues to inject capital into defence and civil works, while land availability and relative affordability offer strong appeal for developers and national investors willing to think long-term.

Defence and Security Continue to Anchor Industrial Growth

Federal defence investment remains the largest single driver of Darwin’s commercial property momentum. With multi-year upgrades to naval and air force facilities and the presence of US military infrastructure, industrial property linked to logistics, maintenance, and defence contracting continues to see strong demand.

• The $2B Larrakeyah Defence Precinct and RAAF Base Darwin upgrades are drawing in defence contractors and suppliers

• Suburbs like Winnellie, East Arm, and Berrimah are supporting spillover tenant demand for storage, fabrication, and transport hubs

• Owner-occupiers in defence-aligned sectors are actively buying lots with secure access, hardstand, and crane capability

Port Infrastructure and Logistics Activity Drive East Arm Demand

Darwin’s proximity to Asia and its deepwater port make it a strategic location for national trade, fuel distribution, and intermodal logistics. The East Arm precinct remains the primary hub for large-format warehousing and transport, attracting tenants tied to freight and commodities.

• East Arm is experiencing high land take-up from logistics, fuel storage, and marine service operators

• Tenants are favouring large sites with multi-vehicle access and direct arterial road links to Stuart Highway

• The NT Government continues to invest in port infrastructure and Berth 3 expansion to support higher capacity throughput

Smaller Industrial Units Thrive in Trade-Focused Suburbs

Darwin’s secondary industrial zones — including Winnellie, Coconut Grove, and Berrimah — remain in demand for small trade and service-based tenants. Leasing volumes have remained stable, with occupancy driven by construction, civil works, vehicle servicing, and air-conditioning or plumbing operators.

• Lease rates for small warehouses in Winnellie and Berrimah average $120–$160/sqm, with low incentives

• Buildings with air-conditioned office/showroom frontages and rear roller access lease faster than generic sheds

• Tenants are looking for 3–5 year terms to maintain operational flexibility amid infrastructure uncertainty

Suburban Commercial Developments Linked to Population Growth

Suburbs on Darwin’s outer edge — including Palmerston, Zuccoli, and Johnston — are now supporting a new wave of commercial projects aimed at serving growing populations. These include childcare centres, medical precincts, gyms, and fast food tenancies in standalone and strata formats.

• Recent land sales in Palmerston have included childcare, gym, and medical DA approvals, often pre-leased

• Suburban commercial land remains affordable, with serviced lots available under $400/sqm in Johnston and Bellamack

• National operators are targeting drive-through, pad site, and co-located retail tenancies near schools and new housing

CBD Office Market Is Stable but Slow

Darwin’s CBD office market is small and tightly held, with minimal development but steady long-term leasing to government and essential services. While incentives are still high, vacancy has reduced slightly due to downsizing and consolidation post-COVID.

• Core tenancies include federal agencies, legal, engineering, and mining services, with some smaller co-working options

• Refurbished buildings with energy upgrades and better amenities are securing longer-term leases

• Office leasing deals are typically in the 100–800sqm range, with little speculative build in the pipeline

Market Outlook: Strategic, Infrastructure-Led, and Undervalued

Darwin’s market won’t make headlines — but for the right buyer or developer, it presents real opportunity. Defence, logistics, and trade access make it unique in Australia. Add affordable land, limited competition, and high capital project spend, and Darwin becomes an increasingly strategic play.

• Land prices remain accessible, with strong upside for development-led buyers in East Arm and Palmerston

• Industrial yields are strong — typically 6.5–7.25% depending on lease term and tenant strength

• NT Government policy supports industrial land release, infrastructure partnerships, and national security investment

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we help put strategic assets like Darwin on the map — literally. Whether you’re launching a land campaign in East Arm, leasing a trade unit in Berrimah, or seeking investor engagement in defence-aligned assets, our visual tools, websites, and marketing strategy are designed to capture serious interest.