Bendigo commercial property market attracts Melbourne investors as yields hold above capital city

Bendigo's commercial property market is attracting increasing interest from Melbourne-based investors seeking yields that remain substantially above what is available in the capital city, with well-tenanted retail, office, and industrial assets in the Bendigo CBD and established industrial precincts trading at yields of 5.8 to 6.8 per cent — a premium of 200 to 300 basis points above equivalent Melbourne assets.

Commercial agency Colliers' Bendigo office recorded its highest volume of interstate buyer inquiries in the past year, with self-managed superannuation funds, private syndicates, and property-focused family offices accounting for the majority of external capital flowing into Bendigo commercial assets. The buyers are attracted by the yield premium and by Bendigo's underlying economic fundamentals, including population growth above the Victorian state average, a diversifying employment base, and a healthcare and education anchor that provides stable tenancy demand.

The industrial precinct at Marong — Bendigo's designated industrial growth area — has seen strong demand for large-format shed and warehouse accommodation from logistics operators, with vacancy rates below 3 per cent across the precinct's completed stock. Several developers are progressing plans for speculative industrial development at Marong in response to the constrained supply, which has pushed rents to levels that justify new construction economics.

Office vacancy in the Bendigo CBD has tightened to approximately 8 per cent, still above pre-COVID levels but improving as professional services, government agencies, and healthcare providers absorb available stock. A-grade office accommodation remains effectively fully occupied, with several professional firms seeking space that is not currently available in the CBD.

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