Commercial Property Loans in Dandenong South

The Dandenong South industrial market

Roughly 2,500 hectares of zoned industrial land, anchored by national logistics operators, food manufacturing, automotive and metal fabrication. The precinct absorbs more new industrial supply than any other Melbourne submarket — 250,000+ sqm of new build per annum across the last cycle — and yields on prime distribution stock have compressed inside 5.25% on long-WALE institutional product. Secondary owner-occupier industrial trades 50–100 bps wider but with materially deeper bank appetite on standard policy.

Last-mile logistics and 3PL demand

Distance from the CBD (~30km) is short enough for last-mile fulfilment, far enough for land cost to remain rational. Amazon, Coles, Woolworths, DHL, Toll and the major 3PLs all hold long-WALE leases here. The structural shift to e-commerce since 2020 has pushed institutional capital aggressively into the segment — lenders follow that capital, and pricing on tenanted logistics product has materially tightened.

Food manufacturing and cold-storage

Dandenong South hosts one of Australia's densest concentrations of food manufacturing and cold-storage facilities — meat processing, dairy, bakery, beverage and ready-meal production. These assets are specialised security: floor loadings, refrigeration plant, drainage and effluent infrastructure all carry value, but lenders need to understand the asset class. Specialist industrial non-banks and the second-tier banks lead on this lane; the majors are more cautious without an existing relationship.

Owner-occupier manufacturer acquiring 1,500 sqm warehouse

Established Victorian manufacturing SME consolidating two leased facilities into a single owned premises. Full doc, 70% LVR, 25-year P&I with 3-year IO. Major-bank pricing leads; the trading entity's last two years of clean financials make this a tier-one deal.

Investor adding a leased distribution warehouse to a portfolio

$8–20m prime distribution warehouse leased to a national 3PL or grocery retailer on 7–10 year WALE. Lease doc senior at 65–70% LVR, indicative pricing 6.7–7.1% in 2026. Long-WALE credit-tenant covenant carries the deal.

SMSF acquiring premises for trading business

$2–4m strata warehouse or freestanding industrial property acquired inside an SMSF and leased back to the member's trading business at arm's-length market rent. Lease doc LRBA, 65% LVR, indicative pricing ~7.5%. Business Real Property classification straightforward.

Institutional logistics capital

Goodman, Dexus, Charter Hall, Centuria, ESR and the major superannuation logistics platforms (Aware Super, AustralianSuper) hold the dominant share of prime tenanted stock. Goodman alone owns more than 400,000 sqm in the precinct. Institutional bid keeps prime yields at decade lows.

Private and SMSF flow into owner-occupier industrial

Private investors and trading-business owners ($1–8m cheque size) dominate the owner-occupier and small-strata warehouse market. SMSF acquisitions of business premises (lease-back to the member's trading entity) are particularly active — Dandenong South accounts for ~15% of our SMSF commercial deal flow nationally.