September 2025 :: Trends and Insights
Springboard for Action: Why Spring is the Smartest Season for Industrial Property Moves in Melbourne’s North & West
Spring is a season of renewal — and for Melbourne’s industrial property market, it’s also a season of opportunity. Learn what’s happening on the ground right now, and how it has real implications for you.
Springboard for Action: Why Spring is the Smartest Season for Industrial Property Moves in Melbourne’s North & West
Spring is a season of renewal — and for Melbourne’s industrial property market, it’s also a season of opportunity. As vacancy begins to rise off historic lows, incentives become more common, and buyers and tenants reassess their needs before year-end, the coming months represent a critical window for investors, developers, and occupiers alike.
At Rutherfords, we see this play out daily across Campbellfield, Somerton, Laverton, Truganina, Sunshine and beyond. This isn’t just theory — it’s what’s happening on the ground right now, and it has real implications for your portfolio, your project, or your next move.
What the Market is Telling Us This Spring
- Vacancy rates are normalising: After years of record lows, industrial vacancy has edged up. That creates risk for landlords who don’t plan ahead — but also opportunity for tenants and buyers who’ve been waiting for choice.
- Rents are stabilising, incentives are rising: Growth has slowed, particularly for older or generic stock. But functional SME-grade spaces in the right corridors still perform strongly. Incentives are now a negotiation lever, not a stigma.
- Demand is shifting to “fit-for-purpose”: Enquiries for logistics, food-grade, cold storage and trade supply assets are rising. Square metres alone no longer cut it — configuration and functionality are decisive.
- Sub-$5M sales remain strong: Owner-occupiers and private investors dominate activity, with institutional buyers still cautious. Smaller, income-producing assets are transacting faster than prestige holdings.
- Local intelligence is everything: Sunshine, Somerton, and Campbellfield are outperforming national averages, proving that street-level dynamics matter more than market headlines.
What This Means for Investors
For industrial investors, Spring 2025 is less about waiting for the “perfect” market and more about acting with strategy:
- Lease expiry is your blind spot: Too many investors wait until the last 30 days to renegotiate. That’s when vacancy risk spikes and tenant leverage increases. Starting 6 months out — like we do at Rutherfords — protects yield.
- Incentives are not giveaways: A one-month rent-free to secure a three-year tenant is often smarter than sitting vacant for 90 days. We help clients run the numbers to see the real impact on portfolio yield.
- Condition = retention: A $15K upgrade to lighting or office fit-outs can deliver an extra $50K+ over the term of a renewed lease. It’s not capex, it’s asset protection.
Case in point: A long-term investor client in Somerton faced a September expiry on a tenant representing 40% of their portfolio income. By engaging us in March, we negotiated an early renewal with a 6% rent uplift — while their peer down the road sat vacant for 3 months.
Investor takeaway: Spring is your signal to review lease expiries, refresh incentives strategy, and plan upgrades before vacancies eat into 2026 returns.
What This Means for Developers
Developers are under pressure this spring — speculative builds without tenant alignment are struggling, while niche-fit projects are still thriving.
- Anchor tenants matter more than polish: Projects with secured pre-leases in logistics or trade supply are moving fast. Empty spec builds risk sitting into 2026.
- Refurb > rebuild: We’re seeing older stock in Laverton North lease faster than brand-new projects — simply because they’re priced right and fit operational needs.
- Tenant-driven design wins: Cold storage, crane access, and multi-use SME layouts are the most in-demand configurations this spring. Designing for flexibility, not flash, reduces leasing risk.
Case in point: A local developer in Campbellfield engaged us early for tenant alignment. We secured a pre-commitment for two units before construction finished — while another project 2km away is still advertising vacant space.
Developer takeaway: This spring is about alignment, not assumption. Secure tenants early, consider refurbishment plays, and let corridor-specific demand drive your project strategy.
What This Means for Occupiers
For occupiers, spring is the first real window of leverage in years.
- Choice has returned: Vacancy pockets in Sunshine and Truganina mean occupiers can upgrade into better-located or better-fitted stock without blowing their rent budgets.
- Incentives level the playing field: Fit-out contributions or rent-free periods are on the table — something rare just 18 months ago.
- Ownership is back on the radar: With sub-$5M assets still transacting strongly, more SMEs are exploring whether they can own rather than rent.
Case in point: A trade supply business in Sunshine recently negotiated a 20% incentive package plus upgraded lighting and office space — all without increasing base rent. Another SME client purchased a $4.8M site in Broadmeadows, locking in long-term security at a monthly outlay similar to their old lease.
Occupier takeaway: Whether renewing, relocating, or buying, spring is the time to negotiate confidently. Don’t wait until December when options thin out.
Why Rutherfords?
The difference this spring isn’t in the macro data — it’s in the micro moves. Our team is on the ground daily in Melbourne’s North and West, seeing which streets are leasing fast, which tenants are circling, and where incentives are unlocking stalled stock.
For Investors: We bring proactive PM, strategic lease planning, and upgrade advisory to protect yield.
For Developers: We partner from site selection through to pre-lease and PM onboarding, reducing risk across the lifecycle.
For Occupiers: We cut through noise to secure the right space, on the right terms, at the right time.
Spring 2025 Key Takeaways
Vacancy isn’t a threat, it’s an opportunity — if you move early.
Investors: Review expiries and refresh assets before year-end.
Developers: Align design + strategy to corridor-specific demand.
Occupiers: Negotiate incentives or ownership before the market tightens again.
Next Step
Smarter moves start with strategy.
Whether you’re planning your next acquisition, development, or relocation, Rutherfords combines local intelligence, commercial acumen, and trusted relationships to help you act with confidence.
Book your Spring 2025 strategy review today
