The commercial property market has presented a mixed set of results across the quarter, with varying levels of momentum depending on asset class, price point, and location. While some campaigns have taken longer to reach completion, several of our recent Expression of Interest sales have generated strong interest and competitive offers.
The Industrial sector continues to demonstrate resilience, particularly in Melbourne’s north and north-east. Demand remains solid, and well-positioned properties with secure leases continue to attract both investors and owner-occupiers.
Assets in the $800,000 to $2.5 million range remain steady, with good levels of enquiry and transactional activity.
Recent examples include:
- 11 Kolora Road, West Heidelberg — sold last week for $2.5 million, representing a 5% return with a long-term lease securely in place.
- 24/10 Mirra Court, Bundoora — a strata warehouse sold for $840,000, attracting multiple parties at close of offers several weeks ago.
Larger properties in the $4 million to $6 million bracket are currently taking longer to convert, with negotiations proving more protracted. We do, however, anticipate several of these transactions finalising over the coming weeks.
Despite extended negotiation periods, vendors have realistic price expectations in turn providing good opportunities for active buyers.
There is a growing sense of renewed confidence emerging. A short succession of strong sales results would be enough to spark a broader uplift in market momentum. Buyers who are positioned to act now will likely benefit from this transition phase.
Opportunity: Long-Term Investment in Ivanhoe
We currently have a highly secure investment offering in Ivanhoe, adjacent to Ivanhoe Plaza with long-term tenant St Vincent’s Pathology (25+ years). With an annual return of approximately $40,000 and expected yield of 5–5.5%, this represents an example of a stable commercial asset that is particularly attractive in the current market environment.
Leasing Market
Leasing activity remains steady for this time of year, with many businesses adopting a hold-and-review approach until the early months of the new year. As a result, rental levels have remained broadly stable with no major upward or downward movements in demand.
All signs point toward a solid start to 2026, with improving sentiment, realistic vendor expectations, and steady enquiry forming encouraging foundations for the months ahead. Please get in touch if you would like to discuss your commercial property.
