CUSHMAN & WAKEFIELD | 2
AUSTRALIA'S OCCUPIER MARKET OUTLOOK
INTRODUCTION Why the next occupier cycle will be defined by optimisation rather than expansion.
The upcoming occupier cycle will be shaped less by outright expansion and more by optimisation. While vacancy, demand, supply and rents remain central to occupier decision-making, businesses are increasingly assessing their property footprint through a broader operating lens. Persistent cost pressures, labour constraints and supply chain uncertainty are increasing the focus on productivity, with real estate being assessed for its ability to reduce transport and labour costs, increase storage capacity, support automation and strengthen network resilience. This shift is already evident in leasing behaviour. National leasing activity has remained active, but net absorption has been more subdued, indicating that a growing share of transactions is being driven by relocation, consolidation, upgrading, space rationalisation and operational improvement rather than pure footprint growth. For occupiers, the key question is no longer simply whether more space is needed, but whether the existing portfolio is fit for the next phase of the business. As the cost of inaction becomes more apparent, occupiers need to make property decisions earlier and as part of their broader supply chain strategy, driving greater focus on network optimisation and facilities that deliver long-term operational efficiencies. For landlords and developers, this reinforces the importance of building functionality, power capacity, clear height, ESG performance, yard configuration and automation readiness in helping occupiers reduce whole-of-business costs.
AUTHORS
Luke Crawford Head of L&I Research, AUS Luke.Crawford@cushwake.com
Tony Iuliano International Director, Head of L&I, ANZ Tony.Iuliano@cushwake.com David Hall National Director, Head of Brokerage, L&I, ANZ David.J.Hall@cushwake.com
Morgan Evans National Director, Tenant Advisory, L&I, ANZ Morgan.Evans@cushwake.com
Powered by FlippingBook