property

Moorabbin Commercial Market Records Major Sales as Investor Demand Surges

A wave of acquisitions and full occupancy at key sites points to sustained investor demand in the south-east industrial and retail corridor.

By Moorabbin Property Desk · Published 19 July 2026

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Moorabbin's commercial property market is showing clear signs of strength this month, with a series of major transactions and leasing milestones underscoring demand across both industrial and retail sectors. From the sale of the fully leased Moorabbin Retail Centre to the complete occupancy of the former Phillip Morris cigarette factory site, the data points to a market that continues to attract serious capital.

Spotlight's Retail Centre Play

Spotlight Property Group has acquired the Moorabbin Retail Centre at 405 Boundary Road, a property anchored by Decathlon and National Tiles. The deal, which traded at a passing yield of 6.13%, follows a competitive campaign that generated over 150 enquiries, a reflection of the appetite for well-leased retail assets in established suburban catchments.

Morris Moor Hits Full Occupancy

In a landmark moment for adaptive reuse, Morris Moor, the redevelopment of the former Phillip Morris cigarette factory, reached full occupancy in July 2026. The precinct now leases nearly 55,000 square metres to brands including New Balance, Waterman and Stomping Ground. The project's success signals how large-format industrial-to-commercial conversions can thrive when aligned with tenant demand for flexible space and strong amenity.

Airport and Industrial Blocks Change Hands at Scale

At the top end of the market, a Barings consortium has agreed to purchase the entire 294-hectare Moorabbin Airport precinct from Goodman Group in a deal valued at $1.5 billion. The transaction represents a major shift in ownership of the area's industrial and retail core. Meanwhile, ITW Australia sold a rare two-hectare industrial landholding at 592-600 South Road, ending more than 40 years of single ownership, a release of tightly held land that developers have been keen to access.

Vertical Industrial Set to Reshape the Skyline

New supply is also on the way. A four-storey strata warehouse development called KEYS101 is planned for Moorabbin, billed as Victoria's tallest multi-level industrial project. Offering 46,722 square metres of space, the development is designed to cater to small businesses and e-commerce operators looking for efficient, high-density industrial accommodation close to transport corridors.

The combination of full occupancy at Morris Moor, a competitive retail-centre sale and the imminent arrival of vertical industrial stock suggests Moorabbin's commercial property cycle has room to run. Investors will be watching how the next wave of development absorbs demand, but the current price signals and leasing data point to a market that remains firmly in favour of owners and developers alike.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.