Cushman and Wakefield | The Occupier Reset

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CUSHMAN & WAKEFIELD |

04 WHAT HAPPENS NEXT

AUSTRALIA'S OCCUPIER MARKET OUTLOOK

ALIGNING REAL ESTATE WITH OPERATING STRATEGY As occupiers review their networks, our Supply Chain & Logistics Advisory team links supply chain strategy to real estate decisions.

This report shows occupiers shifting from expansion to optimisation. Renewals, relocations and consolidation are increasingly tested against the whole operating cost, not rent alone. Yet supply chain strategy and real estate decisions are often disconnected. Lease events are managed site by site, relocations are triggered reactively and duplication from past acquisitions stays embedded in the footprint. The result is rising occupancy cost, sub-optimal locations and missed consolidation opportunities. Cushman & Wakefield's Supply Chain & Logistics Advisory (SCLA) team bridges operating strategy and real estate execution, so occupiers decide what their network should look like before deciding where to lease.

WHAT WE DO

RESULTS FROM OUR WORK

Optimise industrial footprints to cut cost and support growth

Location optimisation The right number of sites, in the right location and rightsized

01 Network & Operating Strategy

02 Facility Design & Recommendation

03 Lease Event & Portfolio Alignment

04 Implementation Roadmap

Service enhancement Uplift in key metrics such as next- day delivery performance

ADVISORY SUPPORT WHEN IT MATTERS MOST

Industrial Portfolio Health Check Rapid 4 to 6 week diagnosis • Lease exposure mapping

Lease Event & Portfolio Alignment Ahead of clustered expiries • Renewal vs relocation modelling • Sub-optimal site identification • Sequenced action plan

Operating cost reduction Reduction in key operating costs, particularly labour and transport

• Cost-to-serve overlay • Quick-win identification

Working capital reduction Reduced inventory holding, freeing capital for deployment

M&A Integration & Rationalisation Following acquisitions • Duplication and site overlap mapping • Consolidation modelling • Transition strategy

Manufacturing & Distribution Footprint Reset 18 to 26 week strategic programme • Holistic network review • Consolidation and relocation scenarios • Lease alignment and execution roadmap

Drawn from selected Cushman & Wakefield SCLA client engagements.

WHEN TO REVIEW THE NETWORK

Lease expiries cluster Test renewal against relocation before committing.

Consolidation is on the table Model fewer, higher-capacity sites against cost and service.

Automation or capex decisions Match site and building specification to the operation.

Acquisitions add duplication Map overlap and sequence rationalisation.

Margin pressure intensifies Overlay cost-to-serve on leases to find quick wins.

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Contact: Michael Carson, Head of Supply Chain & Logistics Advisory, APAC & EMEA | michael.carson@cushwake.com Results are drawn from selected Cushman & Wakefield SCLA client engagements.

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