Melbourne Industrial and Logistics Figures Q1 2026

Key Points:

• Gross take-up in 1Q26 totalled c.360,000 sqm, marking a strong quarter on quarter increase and the highest first quarter result since 2022, despite a more uncertain global backdrop.
• New floorspace added to the market totalled c.75,000 sqm across three major projects, concentrated in Melbourne’s South-East. A significant share of the forward pipeline has been deferred, with delivery timeline shifting toward 2027 amid feasibility and cost pressures.
• Vacancy lifted to 4.7% (as at 2H25). Despite this, net effective rents increased quarter-on-quarter for the first time in 12-months, rising by 1.2%.
• Land values recorded a marginal increase over the quarter, underpinned by activity in the Inner and West precincts, while broader feasibility constraints continue to limit pricing upside.
• Investment sales totalled approximately AUD 210 million in 1Q26, across 11 transactions valued above AUD 5 million.
• Yields remained broadly stable across all grades and precincts. Looking ahead, the forward interest rate outlook is expected to support gradual softening in yields over the remainder of 2026.