Former Costco Warehouse in Docklands Set to Become $92 Million Pathology Hub

In a surprising twist for Melbourne’s Docklands, the old Costco warehouse is getting a major makeover. Sonic Healthcare has snapped up the massive site at 331–338 Footscray Road for $100 million, with plans to transform the former retail space into a cutting-edge pathology facility.

From Big Box to Health Hub

The existing two-storey building, spanning an impressive 26,800 square metres, won’t be torn down. Instead, Nettleton Tribe Architects will breathe new life into the structure by adding windows, improving energy efficiency, and introducing green spaces around the building.

According to The Urban Developer, the $92 million redevelopment will deliver a major jobs boost for the area, starting with 600 roles and potentially growing to 720 as the facility expands.

Planning Approvals Underway

Before construction can begin, the City of Melbourne must update the site’s 2003 development plan to include a “development centre” in the list of permitted uses. The final sign-off will come from the Victorian Department of Transport and Planning.

However, early signs are positive. Council documents show that planning officers have already thrown their support behind the project.

Economic Boost vs Community Concerns

The redevelopment is tipped to inject close to $6 million into the local economy each year, providing a welcome lift for businesses in the surrounding precinct. Still, not everyone is on board.

As Docklands News reports, some residents had hoped the site might be used for a desperately needed secondary school. With enrolments rising at Docklands Primary School, the Department of Education is still exploring suitable locations for a future high school in the area.

A Sign of the Times

Despite mixed reactions, Sonic Healthcare’s investment reflects a broader trend: the increasing prioritisation of healthcare infrastructure in Melbourne’s urban development strategy.

For more information about Sonic’s work in the sector, visit Sonic Healthcare Australia – Pathology.

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