Melbourne’s industrial market is massive and diverse, stretching from the inner suburbs to growth corridors 50+ kilometers from the CBD. When you’re ready to explore warehouse for rent in Melbourne, you’re looking at one of Australia’s most dynamic logistics markets with options ranging from small distribution centers to massive fulfillment operations. The market has grown significantly, with over 1.5 million square meters of new industrial space delivered in the past three years alone. Understanding where to look and how different areas serve different needs can help you find space that not only fits your current requirements but gives you room to grow without relocating every few years.
The Western Corridor Dominates Logistics
Melbourne’s west has become the logistics powerhouse of the city. Suburbs like Truganina, Laverton North, Derrimut, and Altona North house some of Australia’s largest warehouse facilities. This concentration happened because of proximity to the Port of Melbourne, excellent highway access via the Western Ring Road and Princes Freeway, and large parcels of industrial-zoned land.
Rental rates in the west vary significantly based on specific location and building quality. Older facilities in established areas like Sunshine might rent for $80-$100 per square meter, while brand-new developments in Truganina can hit $120-$150 per square meter. The trade-off is building quality, ceiling height, and modern features.
The west also has the deepest labor pool for warehouse work in Melbourne. This matters more than some businesses realize—being able to hire and retain workers is critical, and locations with established industrial workforces make this easier.
Northern Growth Corridor Offers New Opportunities
Melbourne’s north has seen explosive industrial growth, particularly around Craigieburn, Somerton, Epping, and Campbellfield. The Hume Highway corridor provides excellent access to Sydney and regional Victoria, making this area attractive for distribution operations that service beyond Melbourne.
New industrial estates in areas like Merrifield and Donnybrook are delivering modern facilities with all the latest features. Because these are developing areas, you sometimes find better deals on new construction compared to the more established western suburbs. Landlords in growth areas might be more flexible on lease terms to attract quality tenants.
The north typically costs slightly less than comparable properties in the west—maybe $10-$20 per square meter less—while offering similar highway access and newer facilities. The trade-off is you’re further from the port if import/export is a major part of your operation.
Southeast Options for Distribution-Focused Operations
The southeast corridor along the Monash Freeway and Princes Highway serves businesses focused on distribution rather than import-heavy operations. Suburbs like Dandenong, Keysborough, and Lyndhurst have established industrial areas with a mix of older and newer facilities.
Dandenong South in particular has a huge concentration of industrial property, with everything from small 500 square meter units to massive 50,000+ square meter facilities. This diversity means more options at different price points. You can often find mid-range facilities (10-15 years old) for $90-$110 per square meter that still have decent features.
The southeast tends to have better access to skilled labor for light manufacturing and assembly operations, not just warehousing. If your operation involves any value-added services or product assembly, this might matter.
Smaller Facilities in Inner Suburbs
Not every business needs 10,000 square meters in Truganina. If you’re running e-commerce operations that need fast access to Melbourne’s population centers, smaller facilities in inner suburbs like Port Melbourne, Footscray, Brunswick, or Collingwood might work better despite higher costs.
These properties typically range from 500-3,000 square meters and rent for $150-$250+ per square meter. That sounds expensive until you factor in delivery costs. Being 30 minutes closer to customers can mean you fit in an extra delivery run per day, or you can offer same-day delivery that outer suburban facilities can’t match.
Inner suburban facilities also work well for businesses that need their warehouse close to their office, or that have customers picking up orders directly. The convenience factor justifies the higher rent for operations where speed and proximity matter more than cost per square meter.
Understanding Different Building Classifications
Melbourne’s warehouse market includes properties across a range of quality grades. Grade A properties are modern (less than 10 years old), have high clear heights (10+ meters), excellent loading facilities, and modern amenities. These command premium rents but deliver better operational efficiency.
Grade B properties might be 10-20 years old with decent features but not the latest specifications. These often represent the best value—you get functional space at 20-30% less than new construction. Just make sure the building has been maintained properly and meets your operational needs.
Grade C properties are older, often with lower ceilings, fewer docks, and dated infrastructure. These rent cheaply but can cost you in operational efficiency and higher maintenance issues. Only consider these if you’re doing basic storage that doesn’t require modern features, or if budget constraints leave you no other option.
Strata Units vs. Whole Buildings
Melbourne has a significant market for strata-titled industrial units, where you can lease (or buy) individual units within larger complexes. These units typically range from 200-1,500 square meters and work well for smaller operations or businesses that want defined, secure space.
Strata units usually cost more per square meter than leasing equivalent space in a larger building, but you get your own separate space with your own access and security. This matters if you’re storing high-value goods or need complete control over your environment.
Whole building leases offer more flexibility to modify the space and usually better rates per square meter, but you need to lease the entire building even if you don’t need all the space immediately. Some businesses take larger spaces than they currently need to accommodate planned growth, which can be smarter than relocating in two years.
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