Please Wait

Commercial Property

BIS Oxford Economics has been forecasting movements in Australian commercial property markets since 1988. Our reports on the office, retail, large format retail, hotels and industrial sectors focus on future market trends and what they mean for our clients.

Melbourne Industrial Property 2016 – 2026

Report Published: August 2016


Contact: Beverley Taylor

+61 2 8458 4245

This is the latest comprehensive study of the Melbourne industrial market undertaken by BIS Oxford Economics. This study analyses prime and secondary property markets in Melbourne.

Our study provides a careful analysis of drivers of demand for and supply of industrial space and their implications for the leasing and investment markets. Based on our in-house forecasts of the Australian and Victorian economies, we supply 10 year forecasts of demand for and construction of warehousing and factory space across metropolitan Melbourne, then use the result as the basis for our forecast of rents, yields, capital values and prospective IRRs for prime and secondary property.

The latest study finds that the weight of money chasing assets has changed the dynamics of the Melbourne industrial property market, particularly for investment but also for development. Demand for industrial property started to pick up over the last year or so, in line with an improvement in the Victorian economy. However, demand has struggled to keep pace with supply (which continues at above average levels), keeping vacancies relatively high. In the face notable vacancies, face rental growth has shown little to no growth in recent times with leasing incentives edging higher. The investment market is going from strength to strength with competition for assets pushing yields lower.

So where to from here? We answer the questions such as will the recovery in demand strengthen be sustained and what are the underlying drivers? What is driving industrial property construction in Melbourne and what does this mean for supply? Do vacancy rates have further to rise? What is the outlook for rents, yields and property values across the prime and secondary sectors?

The study is crucial reading for a wide range of industry participants, providing a valuable tool for developers, land owners, construction companies, investors, funds managers, lenders, valuers and policy makers at all levels of government.


REPORT – 2016

Adobe PDF document files for download by subscribers.



Excel document files for download by subscribers.

2016 MAIN REPORT TABLES (xls, 186 KB)