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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 2017 – 2027

Report Published: August 2017

Price:

Contact: Beverley Taylor

+61 2 8458 4245

REPORT NOW AVAILABLE!

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 as well as indicative vacancies. We then use these as the basis for our forecast of rents, leasing incentives, yields, capital values and prospective IRRs for prime and secondary property.

The latest study finds that the weight of money chasing assets has continued and remains a key driver of investment activity, development and, indirectly, the leasing market. Demand for industrial property has remained at healthy levels over the last two to three years, in line with the strength of the Victorian economy. At the same time, Melbourne is in the midst of a strong construction cycle, which has prevented a significant fall in vacancies. In the face notable vacancies, face rental growth has shown little to no growth in recent times with leasing remaining relatively high. Competition for assets in the investment market has continued to push yields lower.

So where to from here? We answer the questions such as will the strength of demand be sustained and what are the underlying drivers? Will the drivers of industrial property construction change in Melbourne and what does this mean for future supply? What is the outlook for vacancy rates, rents, leasing incentives, yields and property values across the prime and secondary sectors? Is the Melbourne industrial property market a good investment?

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 – 2017

Adobe PDF document files for download by subscribers.

REPORT: MELBOURNE INDUSTRIAL PROPERTY 2017 – 2027 (pdf, 722 KB)

EXCEL TABLES – 2017

Excel document files for download by subscribers.

2017 MAIN REPORT TABLES (xls, 243 KB)