Melbourne’s Commercial Market: Resilience, Recovery, and Targeted Deal-Making Drive Recent Results

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Melbourne’s Commercial Market: Resilience, Recovery, and Targeted Deal-Making Drive Recent Results

As Melbourne's commercial property market continues to rebound from previous years of economic uncertainty, the latest transactional activity reveals a clear trend: quality assets, well-positioned strategies, and purpose-driven matchmaking between landlords, tenants, and investors are generating robust results.

Across Melbourne’s retail and office landscape, a distinct shift is occurring. Leasing success is increasingly tied to targeted campaigns and value-aligned tenant placements. High-street retail strips, despite rising vacancy in some pockets, continue to see strong take-up by established occupiers, particularly where the property location complements a brand's long-term growth strategy.

On the sales front, investor confidence—especially from private buyers and self-managed super funds—is emerging as a key driver, even in an environment of elevated interest rates. Off-market transactions are on the rise, underscoring the importance of agent networks and strategic discretion in matching buyers with tightly held assets.

MMJ Melbourne’s Recent Transactions: A Snapshot

Leasing Highlights

  • 105–107 Church Street, Brighton
    In one of Melbourne’s premier retail destinations, a strategic lease was secured by the adjoining tenant for business expansion. This 256m² space leased on a 7-year term at $182,000 p.a., reflects a strong $710/m² rental rate—a testament to high-street retail's resilience.

  • 348 Glenhuntly Road, Elsternwick
    Despite vacancy challenges within the complex, a tailored approach led to a 5-year lease on a 190m² space at $55,000 p.a. ($290/m²), demonstrating the effectiveness of end-user targeting strategies.

  • 19 Bell Street, Ivanhoe
    After an initial tenant withdrew, MMJ swiftly repositioned the asset, enabling a successful 10-year lease and subsequent sale. The space achieved $82,000 p.a. on 165m² ($500/m²), highlighting the team's adaptability and persistence in closing strong deals under pressure.

Sales Highlights

  • 442 Auburn Road, Hawthorn
    In a significant off-market deal, this 1.62ha site—re-zoned to Residential Growth—achieved a circa $50 million result. The site's scale and rezoning potential made it highly attractive to strategic developers.

  • 217 & 221 Separation Street, Northcote
    Another large-format off-market deal saw this 1.7ha inner-city site transact for circa $30 million, marking continued demand for development-ready sites within proximity to established amenity.

  • 796 Swanston Street, Carlton
    Sold under receivership by RSM, this modern 283m² ground-floor retail space fetched $1.6 million. Its city-fringe location and institutional handling drew a private national investor—illustrating the market’s appetite for well-located, well-presented retail assets.

  • 189 McKinnon Road, McKinnon
    Purchased by a private SMSF, this 365m² retail site sold for $1.6 million, reflecting ongoing confidence in suburban retail by long-term investors.

  • 6AA, 195 Wellington Road, Clayton
    This 104m² leased office with a passing income of $33,300 p.a. + outgoings was sold to a SMSF for $550,000, underlining investor appetite for income-producing strata offices.

From Brighton to Northcote, Clayton to Hawthorn, the diversity and success of recent transactions signal a commercial property market that is not only holding its ground but demonstrating pockets of strong activity.

Whether through long-term leases or significant off-market development deals, the MMJ Melbourne team continues to deliver results by leveraging deep market knowledge, strong client relationships, and a strategic approach to every transaction.