Melbourne Commercial & Industrial Property Market Review - September 2022
Our market at present is best described by the revolutionary Russian author Lenin “there are decades where nothing happens and there are weeks where decades happen”. Victorian industrial property certainly mirrors this statement.
Industrial land continues to be pushed to record levels thanks to a lack of supply. Vacant properties with appeal are also in high demand irrespective of the minor rate increases. Investors are looking a bit more under the hood but are still aggressive to place their capital in commercial real estate for the right asset.
Rentals are on the march and recent articles have described growth of 14% in Q2 in Melbourne. From a management perspective we are seeing rental rates pushing well above this, after years of subdued growth thanks to CPI.
The need to order and receive goods in a timely manner has been a terrific driver of industrial space. Some describe this as the last mile effect which enhances smaller warehouse investors around these new Distribution Centres in Melbourne’s south-east, west and north.
With the footy season approaching the crowning of another champion team the market is screaming for opportunity and we would encourage all investors to review their assets in this new market. Great opportunities exist and our aim is to help you identify and find them.
“There are decades where nothing happens and there are weeks where decades happen”