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Melbourne Commercial Properties

Understanding CBD vs Suburban Commercial Rental Values

In Melbourne’s vibrant property market, understanding how location influences commercial rental values is crucial for both investors and business owners. This article dives deep into the contrasts between CBD commercial value and suburban commercial value, focusing on foot traffic and amenities as key determining factors.

The Tale of Two Locales: CBD vs Suburbs

Central Business District (CBD)

The CBD is the commercial and financial heart of Melbourne, bustling with high foot traffic, premium office spaces, and a wide range of retail outlets.


Suburban areas offer a more relaxed environment and are often home to local businesses, smaller office spaces, and community-oriented retail shops.

How Foot Traffic Influences Commercial Value

CBD Commercial Value

High foot traffic in CBD areas can significantly inflate commercial rental property values. The constant influx of people creates an environment ripe for retail and other customer-facing businesses.

Suburban Commercial Value

Suburban areas usually have lower foot traffic compared to CBD areas. While this could mean lower rental costs, it also might translate to less exposure for retail businesses.

Role of Amenities in Rental Value

Amenities in the CBD

From public transport to high-end restaurants, the CBD offers a plethora of amenities that can boost a property’s commercial value.

Amenities in the Suburbs

While suburban areas might not boast the same level of amenities as the CBD, local facilities like community centres and parks can still add value to commercial properties.

Pros and Cons: A Quick Overview

  • CBD Commercial Value: High foot traffic, more amenities, but often at a premium price.
  • Suburban Commercial Value: Lower costs, community-oriented, but may have less foot traffic and fewer amenities.

Case Studies: Melbourne Commercial Rental Values

CBD Office Space

Prime CBD locations in Melbourne have seen a steady increase in rental values, owing to high demand and limited supply.

Suburban Retail Outlet

Certain Melbourne suburbs have experienced a rise in commercial rental values, thanks to growing communities and increased local spending.

Choosing the Right Location for Your Business

CBD Commercial Space

If your business thrives on high foot traffic and access to numerous amenities, a CBD location might be worth the higher rental value.

Suburban Commercial Space

If a community-focused business model appeals to you, then the suburbs with their relatively lower rental costs could be an ideal fit.

By comparing CBD and suburban commercial rental values in Melbourne, you can make an informed decision tailored to your business’s unique needs and financial considerations.