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Industrial demand drives commercial strength in Victoria

By Staff Reporter
18 January 2022 | 1 minute read

Prices for industrial properties across Victoria are rapidly trending north, according to one of the state’s major networks.

Experts at Barry Plant are citing rising interest from chased-up investors alongside a lack of supply for the escalating figures.

“Vacant properties throughout the industrial sector are attracting plenty of heat with an average time on the market of three to four weeks, compared to the usual eight and more weeks,” a recent report from the brand revealed.

Barry Plant Commercial director Benjamin Klein noted that both tenanted and vacant properties had been increasingly achieving higher results.

“The industrial sector is sitting very strong at the moment and we foresee that strength continuing well into the new year,” he said.

“The vacant listings appear to be more desirable for owner-occupier investors who are prepared to pay more.”

He acknowledged that the broader sector had seen a drop in the market for office spaces, which corresponded with the COVID-19 waves experienced by Melbourne and the city’s subsequent lockdowns.

“It is a tough market at the moment, but we do predict a shift as a few normalities return to the workforce and employers welcome back their staff in the new year,” Mr Klein said.

Desire for retail space, however, Mr Klein described as “erratic.”

Key shopping strips such as Church Street in Brighton, Brunswick Street in Fitzroy and Carlisle Street in Balaclava continue to perform well while retail centres off the beaten track have struggled.

“Retail is a bit patchy with some parts proving strong and others trailing behind,” Mr Klein said.

But he said they were already seeing market confidence rising.

“It seems investors are quite cashed up and just waiting on quality stock to hit the shelves, there is a lot of demand for tenanted properties at the moment,” he said.

“Market activity was definitely quieter through the lockdown, but the change in pace is evident, things are moving and confidence has been restored.”

Mr Klein predicted strength in the sector would continue at least into the second quarter of 2022.

“People have money to spend, and they are waiting for quality stock, so there couldn’t be a better time to sell,” he said.

Industrial demand drives commercial strength in Victoria
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