If you run your business out of a rented factory or warehouse in Melbourne's west, you have probably noticed two things this year. Your landlord is quietly offering more to keep you, and the building next door has stayed empty longer than usual. Both point to the same shift, and it is worth understanding before you sign your next lease.
The market has moved in the tenant and buyer's favour
Industrial vacancy in Melbourne's west sat at 5.2 per cent early in 2026, near a decade high, against a ten year average of 2.6 per cent (Knight Frank, Melbourne Industrial State of the Market, Q1 2026). Incentives in the west reached 26.1 per cent, the highest of any Melbourne precinct. In plain terms, tenants and buyers hold more leverage than they have had in years.
Why more business owners are looking at buying, not renting
When you rent, every dollar of rent leaves your business for good. When a business owns its premises, often through a self managed super fund, the rent can be paid into an asset the owners control rather than a landlord's. That is why, in a market where buyers hold the cards, more business owners are asking whether now is the time to own the roof over their operation.
What buying through an SMSF actually involves
This is where it pays to slow down and get proper advice. Buying commercial property through an SMSF has specific rules. In general terms, these are the questions to take to your accountant or SMSF specialist:
This is general information only. It is not financial, tax or legal advice, and Fairmont Property Group is a property agency, not a licensed financial adviser. Speak with your accountant or a licensed SMSF specialist before acting.
Where Fairmont fits
We are not your adviser. What we do is the property side. We work only in industrial property across Melbourne's west and Geelong, so we can tell you what is genuinely available, what it is worth, and whether a building suits owner occupation. You take those numbers to your accountant. They tell you if the structure works for your fund.
The window may not stay this open
New industrial supply is forecast to fall about 37 per cent in 2026, and leasing demand in the west is still running above long term norms. Buyer leverage tends to be strongest when vacancy is high and supply is still arriving. As that supply pulls back, the balance can shift.
What is your industrial property worth?
We track live sales and leases across the western corridor. Get a straight appraisal within 24 hours, with no obligation.
Get a free appraisalIf you want the full picture first, our 2026 West Industrial Market Report lays out the vacancy, rent and incentive figures in one place.
Fairmont only sells and leases industrial property across Melbourne's western corridor and Geelong. That focus is deliberate. It means we know the buyers who are active right now and what they are prepared to pay.