Melbourne Commercial & Industrial Property Market — September 2025 Update

Melbourne’s industrial and commercial property market remains a national standout, with sustained leasing take-up, strategic land releases, and strong developer interest across major logistics corridors. Despite cost pressures and planning bottlenecks in some zones, activity in Melbourne’s west and north continues to outperform, underpinned by e-commerce, warehousing, and institutional capital flows. Industrial land values have levelled slightly from their 2022–2024 peaks but remain well above pre-pandemic levels — particularly in core growth precincts.

Western Suburbs Dominate Development and Land Sales Activity

Melbourne’s west continues to lead the nation in industrial development approvals and lot absorption, with key corridors like Truganina and Laverton North driving the majority of new supply.

• Truganina remains the top industrial hub in Victoria, with large-scale logistics developments and new pre-lease deals signed above $120/sqm

• Laverton North continues to attract blue-chip tenants and institutional-grade warehouse builds over 20,000 sqm

• Developers in Tarneit and Derrimut are targeting smaller lot subdivisions for SMEs and local trades

• Brooklyn and Altona North show strong demand for infill industrial land with proximity to the Port of Melbourne

• Several projects around Werribee and Point Cook are leveraging population growth and improved arterial links to propose new employment zones

Northern Corridor Expands with Zoning Changes and Strategic Investment

Melbourne’s northern industrial precinct is also seeing significant movement this quarter, with new approvals, rezoning activity, and strong sales volumes in larger land holdings.

• Epping and Somerton remain dominant for food production, cold storage, and large-format logistics

• Craigieburn and Mickleham are seeing the release of new industrial lots between 3,000–10,000 sqm

• Infrastructure upgrades around Cooper Street and the Hume Freeway are accelerating tenant interest

• Campbellfield is experiencing increased speculative development as existing supply tightens

• Smaller industrial land offerings in Mernda and Donnybrook are drawing early investor interest as urban boundaries shift

Significant Land Releases Reshape Future Industrial Supply

In response to constrained availability closer to the CBD, several major land releases are reshaping the industrial landscape in outer growth corridors.

• Melbourne Business Park in Truganina continues staged land releases, with over 200ha earmarked for industrial use

• Craigieburn North Employment Area has launched new precinct plans with zones for warehousing and light manufacturing

• Portlink Estate in Altona North is seeing fast take-up of land near the freight corridor

• New stages at Intermodal Estate in Somerton are geared toward transport and logistics operations

• Outer growth suburbs including Melton and Wallan are seeing rezoning proposals that would unlock future industrial precincts over the next 3–5 years

Major Developments Highlight Tenant Confidence

New builds, pre-commitments, and upgrades across Melbourne indicate continued confidence from tenants, even with rising delivery costs and construction delays.

• Frasers Property is progressing with multiple speculative industrial developments in Truganina and Tarneit, each over 10,000 sqm

• Charter Hall has expanded its Epping logistics campus with new builds targeting food logistics and FMCG tenants

• ESR Australia is delivering over 150,000 sqm of new logistics floorspace across western and northern precincts in late 2025

• Redevelopment of older stock in Sunshine West, Altona, and Footscray is bringing modern warehouse space closer to inner metro

• Mid-sized D&C projects in Campbellfield and Tullamarine are on the rise for trade, manufacturing, and showroom clients

Suburb Spotlight: Truganina Remains Victoria’s Industrial Powerhouse

No suburb in Victoria commands the same volume of attention, land sales, and development approvals as Truganina. Its strategic location, planning flexibility, and arterial road access make it a magnet for logistics and warehousing.

• Over 500,000 sqm of new space is either under construction or DA-approved across multiple estates

• Sites with access to the Western Ring Road and Palmers Road are attracting national tenant interest

• Land values range from $650–$850/sqm depending on lot size and proximity to infrastructure

• Developers are favouring multi-lot subdivisions under 5,000 sqm for increased liquidity

• Truganina’s proximity to Melbourne Airport, the Port, and key intermodals cements its future as a central freight hub

Trends to Watch: Cold Storage, Automation, and SME Warehousing

Melbourne’s industrial evolution is not only scale-driven — asset types and tenant demand are shifting.

• Cold storage and temperature-controlled warehousing are in high demand in Epping, Somerton, and Laverton North

• SME tenants are seeking strata or small-lot freeholds in Tarneit, Altona North, and Sunshine

• Automated warehousing designs are being embedded into large-format builds by ESR and Frasers

• Retail-adjacent logistics hubs are growing in Broadmeadows and Keilor Park to support e-commerce fulfilment

• Owner-occupiers are actively securing land to build mid-sized assets before costs rise again in 2026

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we specialise in showcasing Melbourne’s most strategic industrial and commercial developments. From Truganina to Epping and beyond, our team delivers high-impact visuals, marketing suites, and sales tools to help projects gain traction. Whether you’re pre-leasing, seeking investment, or launching to market, our 3D renders, IMs, websites, and campaigns are built to perform.