04 WHAT HAPPENS NEXT
CUSHMAN & WAKEFIELD | 25
AUSTRALIA'S OCCUPIER MARKET OUTLOOK
WHO WILL TAKE THE SPACE? Demand will become more selective as occupiers reshape networks around cost, resilience and service requirements. Collectively, the sectors below have represented more than 90% of warehouse demand since 2020.
TRANSPORT & LOGISTICS
DATA CENTRE ADJACENT
RETAIL TRADE
CONSTRUCTION
MANUFACTURING
WHOLESALE TRADE
• Existing project delivery • Selective housing and infrastructure-related requirements • Demand to remain project- specific rather than broad- based • Warehousing combined with yard, workshop or trade-counter space • Brisbane a focus market
Potential 2027 demand catalyst
• 3PL contract wins • Expansion of Asian 3PLs • Continued outsourcing of logistics functions
• Network recalibration to balance inventory resilience against working capital discipline
• Investment in domestic capacity • Supply chain resilience • Automation and facility upgrades
• Data centre development • Growth in specialist contractors and suppliers • Equipment and critical parts storage
• Population-led
consumption growth • Inventory expansion • Need to improve customer reach
Network response
• Consolidation into fewer, larger hubs, supported by infill nodes where service levels justify the cost
• Rebalancing between large regional distribution centres and smaller facilities closer to customers • Greater automation to lift throughput and offset labour costs • Locations that optimise population reach and delivery cost, rather than simply lower rent • Less expansionary growth anticipated given cost of living pressure and the flow-on of house price declines • Facility decisions will be based on total fulfilment cost and customer reach, rather than rent alone
• Migration from older
• Clustering around
• Consolidating fragmented networks to reduce duplication, improve inventory visibility and control occupancy costs
legacy assets into power- enabled facilities that support automation and higher productivity
established data centre precincts, creating demand beyond the campuses themselves
Where demand will land
• Modern, scalable facilities with labour depth and
• Functional secondary facilities • Industrial outdoor storage near growth and infrastructure corridors
• Power-enabled sites • Outer ring focus given lower transport needs
• Sites close to major
• Functional middle and
Sydney and Melbourne data centre clusters
outer ring facilities offering a balance between customer reach and total occupancy costs
access to multiple motorway corridors
Occupier implication
• Facility decisions to be
• Flexibility will be critical across layouts, yards and lease structures
• Power, planning and fit-out requirements will narrow options and extend lead times
• Given demand will be geographically
• Functionality and
driven by contract tenure, automation payback and network-wide cost savings
affordability will be prioritised without materially increasing distribution costs
concentrated, businesses will require earlier property decisions
• Selective and cost-
conscious approach to leasing decisions
Source: Cushman & Wakefield Research
Powered by FlippingBook