Not all industrial buildings have shared in Greater Melbourne’s rental growth. Over six years, the type of building has made a clear difference to the rent it commands.
Arealytics compared median commencing rents for Greater Melbourne industrial leases by construction type. For concrete (poured) warehouses, typically built for today’s logistics requirements, the median rose from $108.24/m² in 2021 to $134.22/m² in 2026, an increase of about 24%. For metal and steel buildings, it moved from $114.89/m² to $119.63/m², an increase of about 4%.
Concrete overtook metal and steel
In 2021, metal and steel buildings were leasing at the higher median rent. Concrete moved ahead in 2022, at $121.17/m² against $110.00/m², and has led in every year since 2024. In 2026, concrete warehouses lease at a median $14.59/m² above metal and steel buildings, around 12% more.
One unusual year
The metal and steel series is not a smooth line. Its median jumped to $159.51/m² in 2023, above concrete that year, before falling back to $133.33/m² in 2024 and $123.33/m² in 2025. Concrete rents, by contrast, rose steadily from 2021 to 2024 and held at $140.00/m² in 2025.
Both types eased in 2026: concrete to $134.22/m² and metal and steel to $119.63/m². The gap between them held.
What the gap reflects
Concrete warehouses are typically the newer, purpose-built logistics stock, and occupiers are paying more for it. For owners of older metal and steel buildings, the series is a reminder that market rental growth does not lift every asset equally. For valuers and agents, construction type belongs in the choice of comparable evidence.
| Year | Concrete (poured) | Metal / steel |
|---|---|---|
| 2021 | $108.24/m² | $114.89/m² |
| 2022 | $121.17/m² | $110.00/m² |
| 2023 | $125.61/m² | $159.51/m² |
| 2024 | $140.00/m² | $133.33/m² |
| 2025 | $140.00/m² | $123.33/m² |
| 2026 | $134.22/m² | $119.63/m² |
See how construction type is pricing industrial space in your market.
Talk to our team about independently verified commercial real estate intelligence across Australia’s major markets.
Talk to our team →