Office Property Operators in Australia - Industry Research Report

For let: Working from home directives have reduced demand for office property operators

Trading conditions have been challenging for the Office Property Operators industry. The number of non-manual employees in the workforce and private sector capital expenditure have been climbing, supporting overall demand. But fluctuating business confidence and reduced demand from superannuation funds have considerably dulled performance. The COVID-19 pandemic hit the financial outlook of many firms across the country; economic uncertainty led to negative business confidence, which discourage downstream customer firms from expanding their operations or acquiring office space. Superannuation funds invest a lot of money in office property, and lower demand from this market cut into the performance of office property operators. Revenue is expected to drop at an annualised 12.7% to $26.1 billion over the five years through 2022-23. This trend includes an anticipated fall of 17.4% in 2022-23. Since the RBA has consistently been raising the cash rate, skyrocketing interest rates have been discouraging investment and made it less affordable for office property operators to develop new sites for office space.

Office property operators mainly lease or rent office property.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.