June 2025 :: Market Updates
Why Industrial Property Deserves a Place in Your Investment Portfolio
Thinking about diversifying your investment strategy? Discover why industrial property is attracting smart investors in 2025—and how Rutherfords can help you unlock long-term value, better yields, and stable growth.
Why Industrial Property Deserves a Place in Your Investment Portfolio
If you haven’t looked at industrial property as part of your investment strategy—now is the time.
While residential and retail real estate often steal the spotlight, industrial property has quietly become one of the most resilient and rewarding segments in the Australian market. And as Melbourne’s North and West corridors continue to evolve, the opportunities are growing.
Here’s why smart investors—especially those looking to diversify or future-proof—are taking a closer look at warehouses, logistics hubs, and mid-size industrial spaces.
The Case for Industrial: What Makes It So Attractive Right Now?
→ Stable, Long-Term Tenants
Industrial tenants—particularly in the 700–7,000 sqm size range—tend to commit to longer leases and invest heavily in their fit-outs. This creates more stable income, less turnover, and fewer periods of vacancy.
→ Lower Management Overhead
Compared to retail or residential property, industrial assets are generally less maintenance-intensive and less exposed to consumer demand shifts. Fewer moving parts—more predictable returns.
→ High Demand, Low Supply
Despite recent increases in vacancy across Melbourne, good-quality industrial properties remain tightly held. Strategic locations in growth corridors are still seeing strong leasing demand from eCommerce, logistics, and manufacturing businesses.
→ Better Yields Than Residential
While residential yields in Melbourne are tightening, industrial assets—especially those under $10 million—can still deliver 5–6%+ yields, with room for growth through better leasing strategies or repositioning.
→ New Infrastructure = Rising Value
From the West Gate Tunnel to the Beveridge Intermodal Freight Terminal, key transport investments are unlocking huge value in Melbourne’s fringe industrial zones. Owning property in these areas means more than rental income—it’s long-term capital gain potential.
But Is It the Right Fit for You?
You don’t need to be a seasoned commercial operator to succeed in industrial.
But you do need the right partner—one who can guide you through the asset type, the leasing dynamics, and the real commercial upside.
At Rutherfords, we work with a wide range of investors:
- First-time commercial buyers looking to diversify beyond residential
- SMSF trustees seeking yield and security
- Business owners ready to buy and occupy their own site
- Syndicates and family offices seeking long-term, income-producing assets
We help you assess the market, review specific sites, forecast yield and value-add potential, and—most importantly—manage the asset to deliver on your investment goals.
Industrial in 2025: Where the Smart Money’s Going
For the remainder of 2025, the market is offering a rare window:
- Incentives are available on new stock, giving you negotiation power
- Tenant demand remains strong, particularly in the 1,000–4,000 sqm bracket
- Yields are holding, but capital values are more accessible than in peak years
- Leasing activity is shifting, and the right PM partner can reduce vacancy risk and enhance value
This is not just a buy-and-hold environment. This is a market for strategic investors—those who want assets that work harder over time.
Why Rutherfords?
We Make Industrial Investment Clearer, Smarter and More Profitable
We’ve been helping investors buy, lease, and manage industrial property for over 65 years. But our real value lies in what we help you do after the deal:
- Reduce vacancy risk through better leasing strategies
- Protect your return with smart, proactive property management
- Help you grow and reposition your portfolio over time
- Provide market insight—not just service
We’re not just here to sell you space. We’re here to help you build a better investment strategy.
Let’s Talk About Your Next Move
If you’re ready to explore what industrial property could do for your portfolio, we’re ready to help.
- Not sure where to start? We’ll walk you through the key considerations
- Already own an asset? Let’s review its performance and unlock potential
- Looking to buy? We’ll help you evaluate opportunities with clear commercial logic
Book a confidential, obligation-free Investment Strategy Review with Rutherfords today.
And find out why industrial might be the most strategic move you make this year.
