CUSHMAN & WAKEFIELD | 3
AUSTRALIA'S OCCUPIER MARKET OUTLOOK
FIVE THEMES THAT WILL DEFINE 2027 Efficiency, consolidation and capability, not expansion, will shape leasing decisions over the next 12 months.
1. EFFICIENCY IS REPLACING EXPANSION
2. CONSOLIDATION ACCELERATES
3. AI IS BEGINNING TO INFLUENCE REAL ESTATE
4. FLIGHT TO QUALITY CONTINUES
5. OCCUPIER CHOICE TO NARROW
Occupiers are expected to remain focused on improving capacity and productivity without materially increasing their property cost base. Leasing demand may strengthen in 2027, but much of it will come from businesses upgrading or reconfiguring existing networks rather than adding floorspace.
Better buildings, higher clearances and automation are enabling occupiers to do more with less space. As businesses review their networks, consolidation is expected to remain a significant driver of leasing decisions in 2027.
AI is unlikely to transform warehouse networks in 2027, but it will increasingly influence how occupiers plan for future operations. Greater automation and more intensive use of facilities will place added emphasis on power, connectivity, building configuration and flexibility.
Demand is expected to remain concentrated in prime facilities that offer greater capacity and operational efficiency. This will continue to widen the performance gap with secondary stock, even if overall occupier growth remains below the levels recorded earlier in the cycle.
Occupiers still have choice in several markets, but lower speculative supply are anticipated to narrow that choice from 2027, particularly for better quality space.
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