Figures Melbourne Industrial and Logistics Q1 2025

Key Points:

• Gross take-up over the quarter decreased compared to the previous quarter and totalled c.293,000 sqm. Total take-up levels across the Melbourne market remains healthy, with levels consistent with the long-term historical average. 
• New floorspace added to the market in 1Q25 totalled c.100,000 sqm across 4 major projects, with supply evenly split across each precinct. Majority (62%) of Melbourne’s future supply pipeline isn’t under construction, with greater uncertainty on project timing and completion.
• Average super prime and prime rents showed marginal growth in 1Q25, with quarterly increases of 1.6% and 1.3% respectively. Melbourne’s South-East and East continues to be the only source of rental growth.  
• Land values experienced minor downward movement over 1Q25, as development feasibility continues to impact the market, offset by strong owner occupier and data centre activity.  
• A total of approximately AUD 187 million of investment sales (for transactions ≥ AUD 5 million) was recorded in 1Q25 across 13 transactions. 
• Midpoint super prime and secondary yields stand at 5.89% and 6.79%, respectively.