Good offices: Strong foreign investment and workforce growth has boosted revenue

The Office Property Operators industry has grown strongly over the past five years. Demand for office space, and therefore commercial property values, have increased over the period. This increased demand has driven greater development of new office spaces, as both local and international investors have sought to access increased rental yields. Pension funds, sovereign wealth funds and local superannuation funds have invested heavily in office property to benefit from steady long-term returns.Industry revenue is expected to grow at an annualised 6.1% over the five years through 2019-20, to $40.1 billion. This trend includes expected growth of 3.5% in the current year. Strong foreign investment has helped operators expand their property portfolios, boosting revenue...read more.

Industry Statistics & Market Size
Revenue
$40bn
Annual Growth 15-20
6.1%
Forecast Growth 20-25
Profit
Employment
71,016
Businesses
64,237
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong foreign investment has helped firms expand their property portfolios, boosting revenue
  • Demand for office space has grown more quickly than supply, due to delayed development projects
  • Commercial building vacancy rates are expected to decline due to rising demand for office space
  • Industry Report - Industry Analysis Chapter

    Strong demand from both the Sydney and Melbourne markets has continued to drive revenue growth for the Office Property Operators industry over the past five years. Industry revenue is expected to increase at an annualised 6.1% over the five years through 2019-20, to $40.1 billion. This trend includes expected growth of 3.5% in the current year. However, increased vacancy rates in both Perth and Brisbane have constrained the performance of these markets.Commercial property boomA decline in the 10-year bond rate over the past five years has encouraged investors to seek other assets with higher returns, such as commercial property investment. Dec...purchase to read more.

    Additional Insights for the Office Property Operators Industry

    IBISWorld has determined the most important Key Success Factors for the Office Property Operators are:

  • Financial structure of the company
  • Management of a high-quality assets portfolio
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the private sector and Cash rate in the Office Property Operators industry impact industry performance..

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    What's in this report

    What is the Office Property Operators Industry?

    Industry companies primarily lease or rent office property.

    Industry Products
  • A-grade offices
  • B-grade offices
  • Premium-grade offices
  • C-grade offices
  • D-grade offices
  • Industry Activities
  • Office space renting or leasing as owner or leaseholder
  • Office building renting or leasing as owner or leaseholder
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure by the private sector
  • Cash rate
  • Total number of non-manual employees in the workforce
  • Demand from superannuation funds

  • Current Performance
  • Commercial property boom
  • Foreign interest
  • Supply restrictions
  • Vacancy rates and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment interest
  • Work environment changes
  • Table: Office Property Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Office Property Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance
  • Professional Services

  • Key Selling Industries
  • Air Conditioning and Heating Services
  • Commercial Cleaning Services
  • Electrical Services
  • General Insurance
  • Legal Services
  • Painting and Decorating Services
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • A-grade offices
  • B-grade offices
  • Premium-grade offices
  • C-grade offices
  • D-grade offices
  • Chart: Office Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Professional services firms
  • Finance and insurance services firms
  • Other markets
  • Governments
  • IT and communications firms
  • Administration services firms
  • Chart: Major Market Segmentation for the Office Property Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Office Property Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Office Property Operators Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Office Property Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Office Property Operators Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Real Estate Investment Trust (A-Reit)
  • A trust usually listed on the ASX, which holds a portfolio of real estate and allows investors to buy units in the trust.
  • Capital Gain
  • A profit from a sale of real estate that exceeds its purchase price.
  • Net Face Rent (Nfr)
  • The quoted base rental rate net of building costs, before taking into account any rent increases or incentives.
  • Occupancy Rate
  • The amount of office space occupied as a percentage of total available space.
  • Telecommuting
  • Working outside the workplace, which typically involves communicating with the traditional office via email, internet or phone.
  • Vacancy Rate
  • The amount of office space unoccupied as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    The Office Property Operators market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Office Property Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Office Property Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Office Property Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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