Understanding Industrial Zones
Permitted activities in Melbourne’s industrial zones.
Functionality is a key aspect of decision making with industrial real estate. Each industrial zone across Greater Melbourne offers a different combination of infrastructure, access, and zoning allowances that cater to specific types of business operations.
In our recent article, we explored the steady demand across key [industrial areas] and highlighted precincts like Truganina, Derrimut, and Campbellfield as top performers in late 2025. What activities do businesses perform in these areas?
Let’s break it down.
Melbourne’s West: Warehousing, Transport & Logistics Powerhouse
Suburbs: Truganina, Derrimut, Laverton North, Ravenhall, Sunshine
These areas sit within the Industrial 1 Zone (IN1Z), designed to support manufacturing, distribution, and logistics. What makes the west so popular is direct access to the Western Ring Road, Port of Melbourne, and major arterials like the Princes Freeway.
Suited for:
- Third-party logistics (3PL) providers
- E-commerce fulfilment centres
- Linehaul and freight companies
- FMCG warehousing with high pallet racking
- Large-scale cold storage operations
Example Use:
A transport company consolidating depots into a single facility with B-double access, loading docks, and a 1,000+ sqm hardstand.
Northern Melbourne: Food Manufacturing & Urban-Edge Industrial
Suburbs: Epping, Campbellfield, Keilor Park, Tullamarine, Airport West
With excellent proximity to Melbourne Airport and strong residential catchments, the north suits businesses requiring both distribution reach and labour access. Zoning here includes IN1Z and IN3Z, which supports light industry closer to urban areas.
Suited for:
- Food and beverage manufacturers
- Urban logistics hubs
- Aerospace and aviation support industries
- Custom fabrication and engineering businesses
Example Use:
A food production company setting up a HACCP-compliant facility with access to gas infrastructure and drainage suited to food waste management.
South-East: High-Tech, Clean Industry & Advanced Manufacturing
Suburbs: Dandenong South, Hallam, Keysborough
This corridor remains in high demand for its zoning mix, proximity to EastLink and the Monash employment hub, and access to a skilled workforce. It’s also home to some of Victoria’s most advanced manufacturing precincts.
Suited for:
- Clean tech and electronics manufacturing
- Automotive components and plastics
- High-clearance warehousing for tech-based logistics
- Pharmaceutical and medical storage (GMP-compliant facilities)
Example Use:
A clean manufacturing business requiring advanced power supply, climate-controlled warehousing, and R&D lab space.
Why Zoning Matters
Zoning governs what can and can’t be done on a site — from how high you can build, to whether you can operate forklifts outdoors or conduct 24/7 operations. Choosing the wrong zone can limit your business or require expensive adjustments.
That’s why working with a team that understands zoning intricacies is essential when investing in or leasing industrial property Melbourne.
Planning Provision
Learn more about Victorias industrial zones and planning provisions here.
Thinking Beyond the Numbers
Rent, leasing terms and conditions and location are all important but functionality is still an essential driver in the decision making process and is an essential part of the due diligence process. Or if you’re ready to find a property that aligns with your business operations, get in touch with CPN Commercial Group today. We’ll help you navigate zoning, infrastructure, and market opportunities with confidence.
