Melbourne’s commercial property market has changed dramatically in recent years.
From shifting work habits to the evolution of retail and logistics, investor confidence is rising, but success now depends on understanding the new landscape.
At RENTED, property management is the ONLY priority.
We work with owners across Melbourne to manage commercial assets that perform, adapt, and stay competitive.
Here’s what every landlord should know about the latest commercial leasing trends shaping Victoria’s market.
1. Flexible Spaces Are in Demand
Hybrid working has permanently altered office demand.
Businesses now prefer smaller, flexible office footprints that allow hybrid work arrangements without long-term commitment.
For landlords, this means shorter lease terms but broader tenant appeal.
Well-maintained, smaller commercial suites in Melbourne’s city fringe areas like Cremorne, South Melbourne, and Richmond are seeing strong demand.
2. Retail Is Repositioning — Not Retreating
Despite e-commerce growth, physical retail in Victoria remains resilient when it adapts.
Neighbourhood shopping strips, local cafés, and service-based retailers are thriving as consumers prioritise convenience and experience.
Tenants are looking for smaller, adaptable retail spaces with good foot traffic rather than large-format stores.
Landlords who modernise façades, upgrade lighting, or create dual-purpose layouts are more likely to attract long-term tenants.
3. Industrial and Logistics Remain the Star Performer
Industrial leasing continues to lead the market.
The boom in online retail and last-mile logistics keeps vacancy rates at record lows across areas like Truganina, Derrimut, and Dandenong South.
Owners with warehouses or hybrid office-industrial spaces are well-positioned for strong returns.
However, tenant expectations are rising; energy efficiency, truck access, and warehouse automation compatibility are now key leasing factors.
4. ESG Standards Are Influencing Leasing Decisions
Sustainability is no longer a buzzword, it’s a requirement.
Tenants, especially corporate and government entities, are prioritising buildings with energy-efficient systems, waste management plans, and good indoor air quality.
Commercial owners who invest in green retrofits or obtain NABERS energy ratings often enjoy better tenant retention and long-term asset value.
5. Incentives and Fit-Out Flexibility Attract Tenants
In competitive leasing conditions, landlords are offering creative incentives.
These may include rent-free periods, contribution to fit-outs, or flexible lease terms.
However, incentives should always be part of a structured strategy — not a quick fix.
At RENTED, we help owners assess the return-on-investment impact of incentives before committing to them.
6. Regional and Fringe Markets Are Growing
Businesses are spreading beyond the CBD.
Suburbs like Box Hill, Footscray, and Dandenong are attracting tenants looking for accessibility, parking, and lower costs.
Commercial assets in these areas offer steady yields with lower vacancy risk, making them increasingly popular with private investors.
7. Data-Driven Management Is Now Essential
Investors are demanding transparent reporting and performance data.
A forward-thinking property manager provides rental insights, maintenance tracking, and market comparisons in real time.
RENTED uses data to guide every leasing and management decision, helping landlords stay ahead of shifting tenant expectations.
8. Tenant Retention Is the New Growth Strategy
Keeping a good tenant is far more cost-effective than finding a new one.
Proactive communication, timely maintenance, and lease renewal planning are now core parts of high-performing property management.
With a dedicated management-only focus, RENTED ensures each commercial relationship is built on trust, performance, and long-term value.
Final Insight
Melbourne’s commercial property market is evolving fast.
Owners who understand the trends — and partner with a specialist management team — can position their investments for stability and growth.
Whether your asset is an office suite, a retail frontage, or a logistics warehouse, professional management keeps it performing through every market cycle.
At RENTED, property management is not one of many services — it’s the ONLY one. Contact us today for a free appraisal.
