The industrial real estate market in Melbourne is flourishing; the northwest, north, and west areas are important drivers of this development. Investors are looking to these strategically placed suburbs for industrial property prospects as the city’s need for logistics, warehouse, and manufacturing sites rises.

These areas include some important suburbs worth considering for industrial real estate investment:

1. Tullamarine

Northwest Melbourne

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Tullamarine is known primarily for its proximity to Melbourne Airport, making it one of the city’s foremost logistics and transportation hubs. This suburb is a focal point for businesses requiring easy access to air transport and the city’s freeway network, including the Tullamarine Freeway and the Western Ring Road. Additionally, if you want your interstate customers to have easy access once they arrive in Melbourne, Tullamarine is a great option with a quick taxi ride from the airport.

Why Invest:

• • Proximity to Melbourne Airport: Ideal for logistics, freight forwarding, and distribution companies.

• • Options: Tullamarine is a prominent suburb with a heavy focus on industrial development, as a result, there is a lot of choice for investment in terms of size, price and property end-use.

• • Strong Transport Links: Quick access to the Western Ring Road and Calder Freeway provides efficient transportation to Melbourne’s port and the rest of Victoria.

• • Established Industrial Precinct: Tullamarine has long been an industrial hotspot, ensuring a solid demand for industrial properties and steady capital growth.

• • Resale: Demand for industrial in this area is consistent and often outstrips supply; therefore, if you ever choose to sell again, there should be people ready to buy.

2. Sunshine West

West Melbourne

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Sunshine West has grown into one of Melbourne’s key industrial suburbs, benefiting from its proximity to major freeways such as the Western Ring Road and Princes Freeway. The suburb hosts various industries, from manufacturing to logistics and warehousing.

Why Invest:

• • Excellent Connectivity: Sunshine West provides direct access to the Melbourne CBD, ports, and regional Victoria via major road networks.

• • Established Infrastructure: With a long history as an industrial area, Sunshine West offers a range of high-quality industrial facilities and land, making it attractive to businesses and investors alike.

• • Growth Potential: Continued development and infrastructure projects, such as the West Gate Tunnel, drive demand for industrial spaces in the west.

• • Increase in residential investment: The suburb also continues to attract more residents and retail stores, making it a central hub in the west and a convenient access point for your business’s staff if you are an owner-operator.

3. Campbellfield

North Melbourne

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Campbellfield is one of Melbourne’s most prominent industrial precincts in the northern suburbs. Known for its large-scale manufacturing and warehousing facilities, this area has become a key player in the city’s industrial landscape.

Why Invest:

• • Large Industrial Blocks: Campbellfield offers larger industrial blocks at competitive prices compared to inner-city areas, providing excellent value for investors. Big warehouses and distribution centres are continuing to be developed in this area, and many multinationals are using this as a base for distribution in Australia.

• • Access to Major Highways: Located near the Hume Freeway, it offers businesses quick routes to Melbourne, Sydney, and regional markets.

• • Proximity to Emerging Areas: Campbellfield’s industrial estates are well-positioned to benefit from future expansion of the northern suburbs, ensuring long-term demand.

4. Laverton North

West Melbourne

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Laverton North is a very established industrial suburb, known for its large warehouses, logistics hubs, and proximity to major transport routes such as the Princes Freeway and the Western Ring Road.

Why Invest:

• • High Demand for Logistics: Laverton North’s proximity to the Melbourne port and direct freeway access makes it highly sought after for warehousing and logistics operations.

• • Growth in E-commerce: The rising demand for e-commerce and distribution centres has spurred investment in Laverton North’s industrial spaces.

• • Proximity to the West Gate Tunnel Project: Overall, urbanisation and growth drive commercial real estate investment. Fortunately, future infrastructure projects are expected to reduce congestion and improve transport links, further increasing the suburb’s attractiveness to industrial businesses.

5. Broadmeadows

North Melbourne

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The strategic location of Broadmeadows in the northern corridor is behind its industrial comeback. Recent large infrastructure projects have made this place increasingly attractive for manufacturing and logistics activities. With property values climbing by 2.5% over the three months preceding June 2024, The Australian Financial Review also recently placed Broadmeadows sixth among Melbourne suburbs, gathering momentum. As more people choose to live in the area, it offers a growing pool of potential staff for industrial owner-operators.

Why Invest:

• • Future Growth: The Victorian Government has invested in the northern region, with infrastructure upgrades set to attract more businesses.

• • Affordable Industrial Land: Broadmeadows offers industrial spaces at a lower price point than suburbs closer to the CBD, and it has high growth potential.

• • Strong Transport Links: Easy access to the M80 Ring Road and Hume Highway makes it ideal for businesses that need efficient transportation routes.

6. Truganina

West Melbourne

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Truganina has rapidly developed west of Melbourne into one of the city’s most important industrial precincts. It is a hub for large-scale logistics operations and warehousing facilities.

Why Invest:

• • Strategic Location: Truganina’s proximity to Melbourne’s CBD and the port makes it ideal for businesses requiring fast distribution networks.

• • Land Availability: This suburb offers larger land parcels, ideal for businesses needing extensive warehousing or manufacturing space.

• • Growing Industrial Demand: As Melbourne’s western suburbs expand, demand for industrial spaces in Truganina is expected to rise, providing potential for capital growth.

7. Thomastown

North Melbourne

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Thomastown is an established industrial area known for its diverse industrial properties, from small warehouses to large-scale distribution centres. It enjoys excellent connectivity via the M80 Ring Road and the Hume Highway.

Why Invest:

• • Established Industrial Hub: Thomastown has long been a key industrial suburb in Melbourne’s north, ensuring stable demand for industrial properties.

• • Access to Major Freeways: Its proximity to the M80 and Hume Freeway makes it ideal for logistics, manufacturing, and distribution businesses.

• • Lower Entry Costs: Compared to inner-city industrial markets, industrial properties in Thomastown offer relatively affordable entry points for investors.

8. Maribyrnong

West Melbourne

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Maribyrnong, traditionally known as a residential area, has been experiencing an industrial transformation in recent years. Its proximity to Melbourne and the Port of Melbourne makes it increasingly attractive for logistics, manufacturing, and warehousing businesses. The suburb’s population is also increasing, with residential apartment blocks in development, making it more attractive as a central location for employees.

Why Invest:

• • Close to the Port of Melbourne: Maribyrnong provides quick access to the Port of Melbourne, making it ideal for businesses involved in import/export activities.

• • Growing Demand for Mixed-Use Developments: With its industrial resurgence, Maribyrnong is experiencing growth in both residential and industrial sectors, making it a promising area for mixed-use development.

• • Ongoing Infrastructure Development: As the area evolves, there is increasing potential for capital appreciation and industrial property development.

9. Yarraville

West Melbourne

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Yarraville is a well-established industrial suburb just 8 km from Melbourne CBD. Yarraville has a solid industrial base with a mix of older industrial properties and modern developments. Known for its proximity to the port and major transport routes, Yarraville is a prime location for industrial real estate, especially for businesses involved in logistics and manufacturing.

Why Invest:

• • Proximity to Key Transport Routes: Yarraville provides excellent access to the West Gate Freeway, Princes Highway, and the Port of Melbourne, making it a hub for logistics and transport-related businesses.

• • Port-Centric Industrial Opportunities: Yarraville’s proximity to the Port of Melbourne makes it ideal for businesses requiring quick port access for import/export activities.

• Continued Urban Regeneration: As Yarraville continues to undergo urban regeneration, the demand for industrial property in the area is expected to rise, offering the potential for capital growth.

West Melbourne

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Hoppers Crossing is an emerging industrial area in Melbourne’s west, well-connected by major transport routes like the Princes Freeway. The suburb is gaining prominence for warehousing, logistics, and distribution, driven by its strategic location and expanding industrial developments.

Why Invest:

• Strategic Location: Close to major roadways, ideal for logistics and distribution businesses.
• Industrial Growth: Increasing demand for industrial space, supported by ongoing development.
• Proximity to Infrastructure: Well-positioned near growing commercial and residential areas, enhancing future investment potential.

Industrial real estate investment has plenty of possibilities in Melbourne’s north, northwest and west suburbs. These areas offer great opportunities for both short-term gains and long-term development, whether you need a strategic position along a major transportation route, a large-scale warehouse, or a logistics hub near the airport.

Check out CPN’s recent industrial real estate sale results in Melbourne or contact the team, who are specialists in industrial real estate to discuss your needs further. Also, if you are getting ready to sell your industrial property, you can consult our vendor checklist to get ready.