Melbourne has entered FY2026/27 with renewed confidence across industrial, logistics and commercial property, as investors return to the market and occupier demand continues to strengthen. While the office sector is gradually recovering, industrial property remains the standout performer, supported by population growth, expanding freight networks and ongoing demand from logistics, manufacturing and construction businesses.

The western industrial corridor continues to dominate investment activity, with Ravenhall, Truganina, Derrimut, Laverton North and Sunshine West remaining some of Australia’s most closely watched industrial precincts. Despite additional supply entering the market over recent years, quality assets continue attracting strong enquiry from both owner-occupiers and institutional investors.

With Melbourne forecast to remain Australia’s fastest-growing city over the coming decades, long-term confidence across commercial property remains exceptionally strong.

Melbourne market snapshot

• Industrial demand remains robust across Melbourne’s western corridor.
• Investor confidence has improved entering the new financial year.
• Rental growth continues across prime logistics assets.
• Vacancy remains low in established industrial precincts.
• Owner-occupier demand remains strong.
• Development-ready industrial land continues tightening.
• Population growth supports long-term commercial demand.
• Major transport infrastructure continues reshaping industrial markets.
• Institutional investors remain highly active.

Major commercial property activity

Melbourne has continued recording strong commercial activity throughout July, with investors targeting premium industrial assets, business parks and large-scale development opportunities.

Demand has remained strongest for:

• Prime logistics facilities
• Industrial estates
• Manufacturing facilities
• Business parks
• Commercial development sites
• Healthcare property
• Mixed-use developments
• Large format retail

Private capital has remained particularly active throughout Melbourne’s middle market, while institutional investors continue targeting modern logistics assets with secure long-term leases.

Industrial market remains exceptionally competitive

Industrial property continues leading Melbourne’s commercial market.

Businesses remain actively searching for:

• Warehouses from 500m² to 20,000m²
• Distribution centres
• Manufacturing facilities
• Hardstand sites
• Showroom warehouses
• Trade workshops
• Industrial land

Modern developments offering:

• High-clearance warehousing
• Large hardstand areas
• Multiple recessed loading docks
• Premium office accommodation
• Solar-ready roofs
• ESG-focused design

continue achieving strong leasing outcomes despite broader economic conditions.

Melbourne’s western corridor continues to lead

The western suburbs remain Australia’s largest industrial growth corridor.

Truganina

Truganina continues attracting national logistics operators, major retailers and third-party logistics providers seeking access to Melbourne’s expanding freight network.

Demand for modern warehouses remains extremely strong, particularly facilities above 5,000m².

Ravenhall

Ravenhall continues developing into one of Melbourne’s premier industrial locations, with strong owner-occupier demand and ongoing industrial estate expansion.

Businesses are attracted by:

• Western Freeway access
• Proximity to Melbourne’s logistics network
• Modern industrial estates
• Large development opportunities

Derrimut

Derrimut remains tightly held, with limited opportunities becoming available.

Demand continues coming from construction suppliers, wholesalers, manufacturers and transport businesses looking to secure long-term operational facilities.

Laverton North

One of Melbourne’s most established industrial precincts, Laverton North continues attracting national logistics businesses due to its strategic location and excellent freight connectivity.

Port of Melbourne continues supporting logistics growth

Australia’s busiest container port remains one of Melbourne’s greatest commercial advantages.

Industrial demand continues benefiting from:

• Import and export growth
• Distribution demand
• Freight efficiency improvements
• Supply chain investment
• Intermodal freight expansion

Businesses requiring rapid access to both the Port of Melbourne and Melbourne Airport continue targeting western industrial precincts.

Manufacturing continues evolving

Melbourne remains Australia’s manufacturing capital.

Growth continues across:

• Food manufacturing
• Pharmaceutical production
• Defence industries
• Advanced manufacturing
• Medical technology
• Engineering
• Construction products

These industries continue generating demand for high-quality industrial accommodation throughout metropolitan Melbourne.

Commercial office market continues stabilising

Melbourne’s office market continues showing signs of gradual improvement.

Premium office buildings continue outperforming secondary stock as businesses seek:

• Flexible floorplates
• Sustainable buildings
• End-of-trip facilities
• Wellness-focused workplaces
• Premium CBD locations

Leasing activity has improved compared with previous years, although occupiers remain selective.

Infrastructure continues driving investment

Melbourne’s infrastructure pipeline remains a major driver of commercial property confidence.

Key projects include:

• North East Link
• West Gate Tunnel
• Melbourne Airport Rail planning
• Inland Rail connections
• Freight network upgrades
• Port of Melbourne investment
• Suburban Rail Loop
• Industrial road improvements
• Major health and education precincts

These projects continue improving freight efficiency while supporting long-term employment growth across Melbourne’s industrial corridors.

Rental growth continues across industrial markets

Prime industrial assets continue recording rental growth despite additional supply entering the market.

Contributing factors include:

• Strong occupier demand
• Population growth
• Manufacturing expansion
• Logistics investment
• Limited serviced industrial land
• Rising replacement costs

Well-located logistics facilities continue leasing quickly, particularly within Melbourne’s western industrial corridor.

Investor confidence remains positive

Melbourne continues attracting investment from:

• Institutional funds
• Private investors
• Family offices
• Interstate buyers
• International capital

Many investors continue viewing Melbourne as Australia’s strongest long-term industrial market due to its population growth, manufacturing base and expanding freight infrastructure.

What developers should watch

Several themes are expected to influence Melbourne’s commercial property market during the second half of 2026.

• Continued expansion of the western industrial corridor.
• Strong logistics demand.
• Increasing owner-occupier activity.
• Ongoing rental growth.
• Manufacturing sector expansion.
• Infrastructure-led employment growth.
• Continued institutional investment.
• Industrial land shortages within established precincts.
• Growth of advanced manufacturing and technology industries.

Developers who secure strategic sites throughout Melbourne’s western corridor are likely to benefit from sustained occupier demand and continued infrastructure investment over the coming years.

Position your project ahead of the market

Melbourne remains one of Australia’s most competitive commercial property markets, making strong project presentation essential for attracting buyers, tenants and investors.

At Commercial Property Marketing, we work with developers, landowners and agencies to create compelling visual marketing that supports stronger commercial outcomes.

Our work is designed to:

• Increase land values.
• Accelerate pre-sales and pre-leasing.
• Generate higher-quality buyer enquiries.
• Reduce vacancy periods.
• Improve investor confidence.
• Support planning approvals and stakeholder engagement.
• Differentiate projects in competitive markets.
• Maximise the long-term value of commercial property assets.