Melbourne Commercial & Industrial Property News — October 2025

Melbourne’s commercial and industrial sectors are regaining momentum, with industrial leading the charge thanks to consistent logistics demand, low vacancy, and continued pre-lease activity in key precincts. Office markets remain mixed, though suburban campuses and build-to-rent developments are gaining pace. Melbourne’s north and west are particularly active for industrial land releases, while the southeast remains tight and sought-after for last-mile warehousing.

Market trends shaping Melbourne this October

As the economic climate begins to stabilise, several themes are emerging across Melbourne’s commercial and industrial landscape:

• Industrial vacancy rates across the metro have stabilised under 2%, with western and northern suburbs driving the majority of leasing activity

• Developers are accelerating pre-lease campaigns, especially in the west, where zoning and infrastructure are development-ready

• Demand for city-fringe offices is rising, particularly where adaptive reuse or ESG-aligned upgrades are in play

• Retail strips in growth corridors are benefiting from population growth, especially in the outer north and west

• Investors are becoming more risk-aware, with secure industrial assets outperforming in both yield and demand

Bought / sold highlights

500 Cooper Street, Epping – $24.5 million sale

A logistics facility in Epping was sold to a private investor for $24.5 million, reflecting strong interest in Melbourne’s northern corridor. The asset featured a long WALE and proximity to key arterial roads.
Significance: Epping continues to show depth in both tenant and investor demand, solidifying its position as a logistics hub.

29-35 Paramount Road, West Footscray – $14.3 million off-market

This older-style industrial site was sold with future redevelopment potential flagged. The buyer is believed to be a logistics operator seeking to unlock site value through staging.
Significance: Redevelopment potential and location near the inner-west make these infill assets increasingly attractive.

Key industrial corridors driving growth

Melbourne’s decentralised industrial growth continues, with key precincts expanding to accommodate demand:

• Truganina / Derrimut / Ravenhall: The west remains the powerhouse of Melbourne’s industrial market, offering scale, affordability, and freeway access

• Epping / Somerton / Campbellfield: The north is increasingly developer-led, with government land releases now accelerating to meet industrial demand

• Dandenong South / Keysborough: Despite tight land supply, this traditional southeast zone remains highly sought after for last-mile users

• Officer South / Pakenham East: Growth in the southeast fringe is drawing attention from developers seeking cheaper land with long-term upside

• Tullamarine / Airport West: Strong interest remains due to airport proximity and the tightening of logistics routes around the ring road

Emerging suburban office and mixed-use precincts

While traditional CBD office towers are slower to lease, suburban office campuses and mixed-use hubs are showing signs of long-term repositioning:

• Box Hill: Medical and education anchors are attracting office investment

• Moonee Ponds: Renewed focus on mid-rise mixed-use and retail/commercial integration

• Footscray: Gentrification and infrastructure are elevating the value of underutilised sites

• Coburg / Preston: Urban renewal zones are being targeted for adaptive reuse of commercial space

• Dandenong: State-led precinct planning and tenant incentives are stabilising the office market

Suburb spotlight: Epping

Epping continues to outperform other northern precincts, offering strong development conditions, robust infrastructure, and growing investor confidence.

• Melbourne Market relocation has driven consistent logistics growth

• Industrial vacancy remains under 1% across larger lot sizes

• New land releases near Cooper Street and O’Herns Road are underway

• Connection to the Hume Freeway and M80 ring road makes it ideal for distribution

• Zoned and serviced land continues to be snapped up by developers and tenants alike

What this means for developers, investors, and landowners

• Developers: Pre-leasing and clear DA-ready masterplans will win in competitive locations.

• Investors: Industrial remains the defensive play, but fringe office and healthcare assets show emerging value.

• Agents: Visual-led IMs and 3D presentations are key to cutting through in lease-up campaigns.

• Landowners: Consider short-to-mid-term development pathways in zones like Epping, Officer and Pakenham.

• Planners: Serviced land with infrastructure clarity continues to lead deal activity.

How Commercial Property Marketing can help

We help projects gain visibility, traction, and stakeholder alignment from day one. From masterplan visualisation to investor-ready marketing campaigns, our services create the clarity and confidence you need to compete — whether you’re marketing in Melbourne’s west or activating a growth suburb in the north.