The short answer: before you buy a warehouse in Truganina, watch two trends, rents and new supply. Knight Frank reports that prime rents in Melbourne's west rose about 3 per cent in the year to Q2 2026, and new supply is forecast well below average. But West vacancy has also climbed to 5.7 per cent, so neither trend guarantees that prices will rise.
These are figures for the whole West precinct, not Truganina alone. Knight Frank's vacancy and take-up data also covers only spaces of 5,000 sqm or more, so smaller units can behave differently.
Rents and supply are worth watching. Vacancy and incentives tell you how much negotiating room you have today.
Trend 1: rents are rising, but more slowly
Prime net face rents in the west averaged $140 per sqm in Q1 2026, up 6.1 per cent over the year. By Q2 they averaged $141 per sqm, and annual growth had slowed to about 3 per cent.
The headline rent isn't what many tenants actually pay. Prime incentives in the west are 26.1 per cent, the highest of any Melbourne precinct, which leaves a net effective rent of about $104 per sqm.
If you're buying to lease the property out, look closely at the net figure. If you're buying to occupy it, compare your ownership costs with the net rent you could otherwise negotiate.
Trend 2: new supply is below average
Knight Frank forecasts 222,000 sqm of new supply in the west in 2026 and 226,000 sqm in 2027, well below the 10-year average of 414,000 sqm. Across Melbourne, new supply is expected to fall 37 per cent to 530,000 sqm in 2026.
Leasing is also active. The west recorded the strongest take-up of any Melbourne precinct in Q1 2026, and about 376,700 sqm of Melbourne's 723,700 sqm in the first half of the year.
Less new supply can support well-located property over time, but it doesn't guarantee a shortage. It depends on how much existing space is sitting empty.
The number to watch alongside them: vacancy
West vacancy rose from 3.3 per cent to 5.7 per cent over the year to Q2 2026, well above its 10-year average of 3.1 per cent. Only the North, at 7.7 per cent, is higher among Melbourne's precincts.
How can leasing be strong while vacancy rises? Knight Frank says take-up has been supported by tenants consolidating and moving into warehouses with more cubic capacity. A business that consolidates can lease a new building and leave space empty elsewhere.
Investment pricing has also softened. Prime yields in the west averaged 6.13 per cent in Q2 2026, up 30 basis points over the year. Across Melbourne, prime capital values fell 1.7 per cent over the year, and small and medium land values grew less than 5 per cent over three years.
Buyers have more room to negotiate now, but less new supply could change that over time.
What to do if you're buying in Truganina
Mistakes to avoid
Current Truganina warehouses for sale include 7 Archer Road, 16/2 Fastline Road and MODE Business Park East.
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Sources: Knight Frank, Melbourne Industrial State of the Market, Q2 2026 and Q1 2026. This guide is general information only and is not financial advice. Get your own advice before you buy.
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.