Melbourne Industrial and Logistics Figures Q3 2025

Key Points:

• Gross take-up for 3Q25 totalled c.165,000 sqm, representing a decline from the previous quarter. Tenant enquiry volume remains subdued.
• New floorspace added to the market totalled c.110,000 sqm across 7 major projects, with majority of completions taking place in Melbourne’s West. A significant portion 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 1.9% 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 255 million in 3Q25, across 16 transactions valued at or above AUD 5 million.
• Yields across all grades and precincts held stable over 3Q25.