October 2025 :: Trends and Insights
Legacy & Succession: Protecting Wealth Through Industrial Property in Melbourne’s North & West
Legacy and succession planning can protect decades of industrial property value. Discover how smart structure, timing, and trusted management safeguard family wealth for generations at Rutherfords.
Legacy & Succession: Protecting Wealth Through Industrial Property in Melbourne’s North & West
Industrial property isn’t just an investment class. For many families and business owners across Melbourne’s North and West, it represents decades of work, wealth creation, and long-term security. Yet succession and legacy planning are often left too late — leading to rushed decisions, avoidable tax or legal complications, and lost asset value.
At Rutherfords, we work every day with clients who want their property decisions to reflect more than short-term gains. They want peace of mind, a clear plan for their heirs, and a strategy that ensures their assets remain valuable for the next generation.
Why Succession is a Hot Topic in 2025
Generational transitions are accelerating: Many industrial property owners are now semi-retired or approaching succession. Assets that were bought 20+ years ago have ballooned in value — creating both opportunity and complexity.
Market normalisation = timing pressure: With vacancy normalising and incentives rising, holding without strategy could mean unnecessary leakage in rental income.
Tax + estate triggers: More families are addressing estate planning in light of changing tax policies, SMSF considerations, and business transitions.
Local ownership is a hidden powerhouse: Suburbs like Somerton, Campbellfield, Sunshine, and Laverton are full of long-term owner-occupiers and investors whose properties are ripe for succession planning — yet often overlooked by bigger agencies.
What This Means for Investors
For investors, succession planning is about protecting both yield and family wealth.
- The “Victor factor”: Many “Vintage Victor” style investors (long-term holders with deep loyalty) need simple, respectful, and clear strategies to reduce complexity.
- Key blind spot = complacency: Older assets may be under-managed or carried on handshake tenant agreements. Without proactive PM, this erodes value just when assets should be stabilised for succession.
Strategic options:
- Consolidating management under one PM partner for smoother transition.
- Refreshing leases to maximise asset saleability or income for heirs.
- Structuring partial disposals (selling one property, holding others) to unlock liquidity without dismantling the whole portfolio.
Case in point:
An investor based in Campbellfield has entered a semi-retired phase and wanted to spend more time at his holiday home — and less time managing his large industrial portfolio. With his son and daughter taking over day-to-day operations, he leveraged his 10+ year relationship with Rutherfords, confident in their Local Insight, Tailored Action, and Lasting Value. By consolidating management and succession planning through Rutherfords, the investor was able to step back with peace of mind, knowing his assets — and family legacy — were in trusted hands.
Investor takeaway: Your legacy is too valuable to leave to chance. Start early, formalise management, and structure for both yield and succession.
What This Means for Developers
Developers don’t always think in terms of succession — but they should. Many small-to-mid tier developers in Melbourne’s north and west (“Builder Bruce” types) build 2–3 units and hold one for themselves. These “legacy” units can either become a headache or a family wealth foundation.
- Pitfall = short-term mindset: Developers who sell out completely often miss the compounding value of holding even one completed unit.
- Smart play = legacy building: By retaining a unit under professional PM, developers can provide passive income, diversify their wealth, and create a stable family legacy alongside more speculative projects.
- Reputation legacy matters too: Succession planning isn’t just about assets — it’s about brand and reputation. Developers with a track record of successful projects and stable PM portfolios are better placed for joint ventures, partnerships, and long-term credibility.
Case in point:
A developer building in Derrimut with a substantial portfolio began handing over property management responsibilities to his family. By engaging Rutherfords to manage challenging tenant issues, the family was able to dedicate more time to their development projects. Confident that Rutherfords would handle both existing assets and new tenant screening for upcoming builds, this developer turned a complex handover into a smooth, strategic transition. A trusted partner in property made generational change achievable with confidence.
Developer takeaway: Legacy isn’t just about the next project. Holding and managing even part of your build with strategy can anchor your family’s wealth.
What This Means for Occupiers
Owner-occupiers — often overlooked in succession conversations — are a critical segment. Many own a single industrial building that houses their business, and in some cases, additional tenants. These “Legacy Lisas” are often juggling both business operations and landlord responsibilities.
- Succession blind spot: Informal leases with sub-tenants or lack of PM structure leave heirs with messy admin, uncollected rent, and undervalued assets.
- Unlocking hidden value: Owner-occupiers can often improve rental yield by sub-letting underutilised space, refinancing, or restructuring ownership before transitioning.
- Business + property succession: Planning should consider not only who runs the business, but how the property supports or separates from it.
Case in point:
A business operator in Laverton North was considering selling both their property and business ahead of retirement. However, the sale of the business was expected to take several years. Working with Rutherfords, the owners were introduced to a purchaser who bought the building and leased it back on flexible terms. This provided an immediate cash injection to support their lifestyle goals while giving them time to achieve an optimal business sale outcome. Rutherfords’ strategic approach allowed the family to plan their exit with confidence — balancing financial, personal, and legacy goals.
Occupier takeaway: Your property is more than premises — it’s part of your wealth. Structure it correctly and it can serve your family for decades.
Next Step
Your legacy deserves clarity.
Rutherfords helps clients protect family wealth, unlock hidden value, and make succession a strength, not a stress.
