Hallam, Epping Deals Prove Melbourne Industrial Appetite

Industrial transactions in Melbourne’s north and south-east have demonstrated how quickly well-located assets are being absorbed as occupiers compete for operationally strategic sites, according to agents.

In Epping, a newly built warehouse sold for $6 million to a private investor who secured a tenant for the building just three days after it was listed for lease.

That turnaround was evidence of persistent demand for modern logistics facilities in the northern corridor, CBRE, who handled the deal, said.

The property at 68 Reddish Close, 32km north of the CBD and within Frasers Property’s 4Ten Estate, was leased to CGA Engineering at $300,000 per annum plus GST and outgoings. CBRE’s Corey LeFavi negotiated the leasing deal.

CBRE agent Jake George, who negotiated the sale, said the rapid sale-and-lease outcome reflected ongoing momentum in the northern industrial market, particularly given the concentration of road upgrades and proximity to the Hume Freeway and Cooper Street.

George said the result highlighted the resilience and depth of the region’s industrial market and the appeal of the site’s design and location.

The 1819sq m warehouse built by Impact Designer Homes and A Grade Concrete & Construction is minutes from the Epping wholesale fruit and vegetable market and Pacific Epping shopping centre.

The agents said the location’s combination of proximity to labour and transport links was attracting logistics and distribution operators.

While the Epping asset demonstrated the pace at which new builds are being absorbed, an industrial holding at Hallam showed that older, low-site-coverage properties were continuing to attract strong interest from businesses determined to remain in tightly held precincts, CBRE said

The 5000sq m property at 22–24 Hallam South Road, about 40km south-east of the CBD, sold for $5.15 million, equating to about $1030 per sq m, after drawing attention from developers and occupiers before ultimately being acquired by a Hallam-based business.

▲ The asset at Hallam changed hands for $5.15 milion.

CBRE agents Patrick Noone, Alex Grima and Fraser Pearce handled that sale and said the successful buyer had been monitoring the site for some time before stepping in after the initial expressions-of-interest deadline passed.

According to Noone, the deal reflected a broader trend in the suburb, with four of CBRE’s last five sales at Hallam by businesses already operating in the area.

Noone said occupiers were paying premiums to stay in Hallam due to its toll-free access to the Monash Freeway and its relative freedom from the congestion that affects neighbouring Dandenong South.

He said the buyer intended to redevelop the property and take advantage of the expansive rear yard, a feature that appeals to operators needing outdoor storage, fleet capacity or greater on-site manoeuvring space.

CBRE said the Epping and Hallam transactions highlighted the different drivers operating across Melbourne’s industrial landscape.

The agency said institutional-grade new builds were attracting fast-moving investors and tenants, while low-coverage, land-rich sites continued to command strong pricing from businesses prioritising location stability over speculative uplift.

CBRE said the deals highlighted Melbourne’s industrial corridors’ strength, with occupiers seeking connectivity, efficiency, and long-term certainty despite broader economic headwinds.