By Burgess Rawson from CBRE Senior Director, Beau Coulter
Shepparton is fast emerging as a standout regional growth centre, drawing increasing interest from commercial property investors seeking long-term value. With a diversified economy underpinned by agriculture, logistics, health and education, the city continues to attract major public and private investment, fuelling development and demand for quality real estate.
Greater Shepparton’s economy continues to demonstrate robust growth, reinforcing its appeal to commercial property investors.
According to the latest data from economy.id, the region’s Gross Regional Product (GRP) reached almost $5 billion in the year ending June 2024, marking a 4.5% increase from the previous year. This growth accounts for approximately 0.85% of Victoria’s Gross State Product, underscoring Shepparton’s significant contribution to the state’s economy.
The 2024/2025 Greater Shepparton City Council budget allocates nearly $70 million to capital works, encompassing road upgrades, drainage improvements, and community infrastructure projects. These investments aim to enhance the region’s livability and support its ongoing economic expansion.
Population growth, infrastructure upgrades and the city’s strategic location in northern Victoria are all contributing to heightened commercial activity.
Investor confidence is evident in the rise of new healthcare, hospitality and retail projects across the region. A string of recent developments – including expansions to medical centres, new bulky goods outlets, and upgrades to existing commercial buildings – point to a maturing market with strong fundamentals.
The momentum is not just in development but also in land acquisition. A recent purchase of approximately 13 hectares on Doyles Road by a private investor group signals confidence in Shepparton’s long-term potential, with the site forming part of a future residential precinct expected to support thousands of new dwellings and hundreds of jobs. It reflects a broader trend of investors securing land ahead of future growth, positioning themselves early in areas earmarked for expansion.
Recent commercial sales provide further evidence of market depth and resilience. Burgess Rawson and Gagliardi Scott recently transacted the I-MED Radiology facility on Nixon Street, underpinned by a renewed 10-year lease to Australia’s largest medical imaging provider. In another sale, a fully leased office building on Welsford Street – positioned near the new $79 million law courts – was secured by investors attracted to its strong tenancy mix and income profile.
Meanwhile, the Cleanaway industrial facility on Old Dookie Road sold to an international investor for $7 million on a sharp 5.89% yield, reinforcing the appeal of quality industrial assets in regional centres.
As development continues and infrastructure investment deepens, Shepparton is evolving into a regional commercial hub with broad appeal. For investors seeking affordable entry points, national tenant covenants and long-term growth, the city offers an appealing value proposition.
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