Melbourne, VIC

Melbourne industrial and logistics feasibility.

Built for the way Melbourne industrial estates are delivered across the West, North, and South-East corridors. Single tenant warehouses, multi-tenant estates, and phased delivery.

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CountryAustralia
StateVictoria
Default contributionsVictorian DCP and infrastructure works
Common typologyWarehouse and estate

What shapes Melbourne industrial feasibility

Melbourne industrial demand spreads across three main corridors. The West around Truganina and Laverton, the North through Epping and Somerton, and the South-East around Dandenong and Cranbourne. Each corridor has its own rent, land value, and tenant profile.

Distance to port, distance to the M80 and EastLink ring, and proximity to customer base are the main drivers of demand at the corridor level. At the site level, the usual feasibility inputs apply: net rent, cap rate, build cost, and incentives.

Popurise models estates as phased delivery, with shared land and infrastructure carried across stages.

Common project types

What Melbourne industrial and logistics typically looks like

The typologies that account for most feasibility work in this market.

Single tenant warehouses

Large pre-committed warehouses for national or regional tenants.

Multi-tenant estates

Phased estates of smaller warehouses for SME and 3PL tenants.

Last-mile logistics

Infill sites for urban parcel and logistics use closer to the city.

Build-to-lease warehouses

Speculative buildings leased and held for stabilised yield.

Assumptions and outputs

What to test, and what the model returns

The inputs that move outcomes in this market, and the outputs that matter to investment committees and capital partners.

Feasibility assumptions to test
  • Site area, site cover, and achievable GLA per stage.
  • Base rent per square metre by corridor and unit size.
  • Capitalisation rate for stabilised value.
  • Build cost per square metre by warehouse specification.
  • Victorian DCP and infrastructure works.
  • Stage timing, leasing void, and incentives.
Outputs that matter
  • Stabilised value and yield on cost per stage and total.
  • Residual land value at target return.
  • Equity IRR through development and stabilisation.
  • Phased cash flow with funding peak.
  • Sensitivity to rent, cap rate, and stage timing.

Models

Relevant feasibility models

The models most often used for industrial and logistics work in Melbourne.

Models

Industrial development feasibility model
Default model for Melbourne industrial schemes.
Industrial and logistics operating model
Stabilised operating model for hold scenarios.

Use cases

How developers use Popurise here

The work this tool is built to do, applied to local conditions.

Use cases

Yield on cost analysis
Compare yield on cost across corridors and stages.
Development cash flow forecasting
Phase a multi-stage estate across years.
Lease-up forecasting
Lease-up curves for multi-tenant estates.

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