Industry Analysis & Industry Trends
The Office Property Operators industry is slowly emerging from the crippling effects of the global financial crisis. Tenant demand grew in 2010-11, stabilising vacancy rates and rental values. Conditions slowed in 2011-12 and are only slowly improving over 2012-13. An increase in investor activity, both domestic and from abroad, strengthened asset values and firmed property yields. However, sales volumes moving into 2012-13 have been low. This follows two years of serious industry decline in 2007-08 and 2008-09, when revenue dipped 20.6% and 7.5%, respectively. Tenant demand was low and cautious investors were repairing balance sheets damaged by major property devaluations. Industry growth has been minimal over the five years through 2012-13, estimated at an annualised... purchase to read more
Industry Report - Industry Analysis Chapter
Office property operators have faced their share of challenges over the past five years. Low business confidence, subdued white-collar employment and increasing vacancy rates resulted in a poor operating environment. Over the five years through 2012-13, IBISWorld estimates revenue earned by the Office Property Operators industry to grow at an annualised 0.2% to reach $28.2 billion. Considering the substantial market downturn over 2007-08 and 2008-09, the industry has performed admirably in achieving even meagre growth such as this. Operators hoping for a strong rebound in 2012-13 will be disappointed as a sluggish domestic economy perseveres. IBISWorld forecasts industry revenue to grow at just 2.2% over 2012-13... purchase to read more