Australian office challenged but tops global rankings

Access the research report to learn more about the key points outlined below:

• Office property continues to be challenged globally by structural changes to occupier demand. This has impacted vacancy rates and rents and trigged large falls in capital values, to which Australia is not immune. From a megatrend perspective, we believe office will continue to underperform against residential, industrial, hotels and retail. However, Australia tops the office rankings globally, providing a bright spot for the local market.

• Australia’s office market is well positioned to benefit from two of the four fundamental forces (Demographics, Technology, Geopolitics and Climate) that are set to shape the global economy over the decades ahead, according to our Megatrends Resilience Index for commercial real estate.

• Demographics is the strongest megatrend driver of Australian office, fuelled by the highest projections for population growth as well as ranking highly for office employment growth. Geopolitics is the next largest driver, helped by Australia’s relatively stable government and legal system as well as a partial insulation to global conflicts.