This is the eleventh comprehensive study of the Melbourne industrial market undertaken by BIS Shrapnel. This study analyses prime, secondary and high-tech industrial 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, secondary and high tech property.

The latest study finds that whilst the GFC caused a major setback to the Melbourne industrial market, the market has now stabilised. We answer questions such as has the market already entered the upswing or is there a risk that it could get worse? Will the recent recovery in yields continue? What is the outlook for rents across the prime, secondary and high tech sectors? Will demand for industrial space continue to improve and what are the underlying drivers? What are the key factors needed for construction activity to pick-up again and when is finance likely to be more readily available? What part will land values play in determining where and how much new space is built and when?

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.