03 CHANGING OCCUPIER BEHAVIOUR
CUSHMAN & WAKEFIELD | 17
AUSTRALIA'S OCCUPIER MARKET OUTLOOK
THE OCCUPIER RESET: FIVE SHIFTS
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MAINTAINING THE COST BASE IS KEY
RELOCATION DECISIONS ARE INCREASINGLY ABOUT PAYBACK The upfront cost of moving remains a major hurdle. Occupiers are weighing that cost against the transport, labour and operating savings a new facility could deliver.
FLIGHT TO QUALITY IS WIDENING THE PERFORMANCE GAP Demand is concentrating in modern facilities that offer greater capacity and operational capability, while secondary stock is giving back space.
CONSOLIDATION REMAINS A KEY OCCUPIER STRATEGY Higher clearances, improved configuration and automation are enabling occupiers to increase capacity while consolidating operations and reducing network duplication.
LOCATION REMAINS CRITICAL TO OCCUPIER ECONOMICS Occupiers are increasingly assessing location beyond headline rent, with access to customers and the broader industrial network influencing the relative value of different locations.
Occupiers remain reluctant to materially increase their property cost base. Rightsizing, incentives and lease structure are becoming more important in making an upgrade financially viable.
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