AI Impact Scenarios Australia

IMPACT ON REAL ESTATE FUNDAMENTALS BY ASSET TYPE

AI Impact Dimension

Office

Logistics & Industrial

Retail

Knowledge-worker employment & space use

Operational throughput & automation

Household income & discretionary spend

What AI primarily drives

Exposure to AI-driven employment shifts

High – demand tied to white-collar job growth

Limited – employment less space-intensive

Low – indirect consumer linkage

Second-order – efficiency flows through pricing & margins

Exposure to AI productivity gains

Second-order – efficiency may reduce space per worker

High – automation directly boosts utilisation

Downside risk if adoption disappoints

Structural vacancy risk

Cyclical demand risk

Supply-limited downside

Outcome uncertainty across AI scenarios

High

Moderate

Low

Near-term softness, long-term lift to demand

Net AI impact signal

Operational upside leader

Stable income support

Source: Cushman & Wakefield Research

Cushman & Wakefield

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