Whether you are looking to secure your first asset or managing a seasoned portfolio, the current Melbourne commercial market can feel a bit like a “wait and see” game. As someone who stepped into this industry in 2008—just months before the GFC hit—I’ve learned that the best opportunities often hide behind the “scary” headlines.
Here is my perspective on where we stand today and where the smart money is moving.
A Lesson from the GFC: Why Experience Matters Now
Starting my career during a global financial crisis was a baptism by fire. It taught me that “normal” real estate requires diligence, hard work, and getting the basics right. Today, we are seeing a similar hesitation. With shifting taxation, interest rate cycles, and global uncertainty, many are “sitting back.”
However, history shows that those who make decisions in these windows are often the ones who see the greatest growth. At GrayJohnson, we’ve been through these cycles for over a century. Our clients aren’t just looking for a transaction; they are seeking counsel from a team that has seen this movie before.
The “Bright Spot”: The Robust Leasing Market
While the sales market (particularly office) is facing headwinds, the leasing sector is incredibly robust. As interest rates have risen, many businesses have chosen to “kick the can down the road “opting to lease rather than buy.
For the savvy investor, this means:
• Rental Upside: While capital growth might be sideways, rental growth is active.
• Strong Demand: We’ve seen massive activity in the 5,000 to 15,000 sqm range.
• Security: High occupancy rates in specialised sectors.
Industrial Pulse
If you’re looking at where the pulse is strongest, look to the Inner North suburbs like Fairfield, Thornbury, Preston, and Heidelberg. The industrial sector here has remained remarkably resilient.
We are seeing an interesting shift in the “traditional” warehouse. It’s no longer just about manufacturing; it’s about brand and e-commerce.
• The Professional Trade: Modern trades (plumbers, builders, electricians) are looking for “clean” factories and main-street frontage.
• Showroom Appeal: Tenants want high-bay, modern warehouses that act as a showroom to build their brand in the age of social media.
• Connectivity: These inner-city pockets offer the last-mile delivery perks that e-commerce giants and small businesses alike crave.
The market isn’t “bad” it’s just shifting. Opportunities for rent reversions and securing high-quality tenants have rarely been better. If you have the patience to look past the doom and gloom in the media headlines, there is plenty of upside to be found in Melbourne’s industrial and leasing sectors.
On the Ground in Preston: Active Opportunities & Proven Results
Having worked extensively across Preston and the surrounding inner-north precinct, I’ve built a strong understanding of both tenant demand and investor appetite in this market. That insight isn’t theoretical—it’s backed by consistent, on-the-ground activity.
We currently have a number of opportunities available for lease, including:
• 17–21 Raglan Street, Preston – Available for lease (pictured above)
• Building H, 34–44 Raglan Street, Preston – Available for lease
These assets reflect the continued demand we’re seeing for well-located, functional industrial space with strong access and exposure.
Recent leasing success in the immediate area further highlights the depth of demand:
• Building J, 34–44 Raglan Street, Preston – Recently leased following a high-profile campaign
• 120 Chifley Drive, Preston – A significant large-scale leasing transaction
• 98A Bell Street, Preston – Leased off-market on a long-term basis to Diversify, a leading AV company (1,380 sqm)
This level of activity reinforces not only the strength of the Preston market, but also the importance of working with a local agent who understands how to position, market, and successfully transact these assets. My relationships within the area allow me to provide both tenants and investors with early access to upcoming opportunities in these highly sought-after locations.
Give me a call on 0439 655 504 to discuss current opportunities, as well as additional properties coming soon.
