Commercial property investment in Melbourne in 2025 offers strong opportunities along with a few risks to watch out for. Industrial properties continue to provide solid yields of around 6 percent for prime sites, while offices in the city show yields between 5.6 and 8.5 percent depending on quality. Hotspots like Sunshine, Footscray, Werribee, and Cranbourne are attracting attention due to new infrastructure and growing business demand. However, challenges such as rising interest rates, higher borrowing costs, and increasing office vacancies remain. Some suburbs may also face an oversupply of commercial spaces. For investors, choosing the right property type and location is key to achieving stable returns and long term growth.
