Melbourne Industrial and Logistics Figures Q2 2025

Key Points:

• Gross take-up for 2Q25 totalled c.145,000 sqm, representing a decline from the previous quarter.  
• New floorspace added to the market totalled c.215,000 sqm across 17 major projects, with half of completions taking place in Melbourne’s North. Majority of Melbourne’s supply pipeline is not yet under construction, with greater uncertainty on project timing and completion.
• The average vacancy rate lifts to 4.1% (as at 1H25). Average net effective rents continue to decline and decreased by 1.0% over the quarter.
• Land values recorded a marginal decline over the quarter, reflecting ongoing development feasibility challenges. However, strong demand from owner-occupiers and data centre operators continues to provide support for land values.
• Investment sales totalled approximately AUD 235 million in 2Q25, across 16 transactions valued at or above AUD 5 million.
• Yields across all grades and precincts held stable over 2Q25.