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Investing in business parks: a defensive and strategic investment in Melbourne’s growth

Melbourne stands as one of Australia’s fastest-growing cities, with projections indicating a population of approximately 8 million residents by 2050.

This anticipated expansion creates an urgent need for well-planned employment zones capable of supporting a bustling populace. As such, these mixed-use light industrial precincts are vital in meeting this demand, serving as the backbone of economic activity and providing essential infrastructure to fuel local job creation and community development. In the current precarious economic environment, business parks present a defensive and resilient investment opportunity consistently attracting strong, stable demand from both tenants and investors over the long term.

 

A sector built for stability

Unlike retail and office assets, business parks have remained resilient due to their adaptable functionality across industrial, commercial, retail and logistical sectors. As the rise of e-commerce drives higher consumer expectations and accelerates demand for faster distribution networks, businesses are increasingly seeking locations near major transport corridors and population hubs.

This trend has heightened the need for high quality, adaptable and energy efficient spaces that support operational flexibility. Developments by Maximise Group, for instance, prove that building business parks designed to address these requirements in prime locations consistently deliver strong, stable returns for investors.

Government-backed growth

Initiatives by the Victorian Government are adding considerable momentum to the sector’s growth. The Plan Melbourne 2017-2050 initiative is guiding the rezoning of industrial land, particularly in West and North Melbourne, to ensure industrial land supply aligns with population growth and economic activity. This targeted approach is fostering new business hubs within key urban corridors. However, market research by the urban planning consulting firm Urbis indicates that within the next 2 years, demand for quality mixed use spaces will outpace supply emphasising the importance of timely investment*.

 

Capitalising on the Investment Opportunity

Investing in business parks is not only a promising opportunity for strong financial returns, it is also a strategic move aligned with Melbourne’s future trajectory. Ongoing urbanisation driven by rising population growth and city planning initiatives positions business parks at the forefront of the city’s economic development. This creates a unique opportunity where investors can play a key role in establishing vibrant, thriving communities that will shape Melbourne for generations to come.

For investors looking for a stable diversifier in their portfolio while minimising risk, business parks represent a compelling proposition.

* Urbis: Urban Development Program. https://urbis.com.au/

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