Industrious: Increasing demand has allowed operators to lift commission rates, boosting profit

The Industrial and Other Property Operators industry has performed well over the past five years. Industry revenue is expected to grow at an annualised 5.9% over the five years through 2017-18, to reach $12.5 billion. This includes an anticipated decline of 6.0% in 2017-18. Industrial property values have risen over the period, with record low interest rates encouraging investment in industrial property. However, this has pushed yields down, because rental incomes have remained stable while property values have risen, this is reflective of strong demand for industrial property and industrial property operation. Average industry profit margins have risen over the past five years, with increasing demand allowing operators to lift commission rates...read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 13-18
5.9%
Forecast Growth 18-23
Profit
Employment
28,208
Businesses
24,225
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Online shopping has boosted demand for warehousing, transport and logistics facilities
  • Strong demand from foreign sovereign wealth and pension funds has supported the industry
  • Strong growth in merchandise trade will support the industry over the next five years
  • Industry Report - Industry Investment Chapter

    The Industrial and Other Property Operators industry is characterised by a high level of capital intensity. For every dollar paid as wages, an estimated $0.49 is spent on capital costs. While capital intensity is high, labour costs incurred from the management and operation of industrial property still represent a large cost for the industry.Depreciation represents an estimated 3.6% of annual revenue, which is in line with property development businesses. Capital costs are principally computer equipment and systems to manage building assets, tenants, rental payments and building services. Building stocks are long-term assets that may be depreciated over 20- to 50-year periods. In ...purchase to read more.

    Additional Insights for the Industrial and Other Property Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial and Other Property Operators Industry are

  • Financial structure of the company
  • Management of a high-quality assets portfolio
  • Access to secure revenues
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Total merchandise imports and exports in the Industrial and Other Property Operators industry impact industry performance..

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    What's in this report

    What is the Industrial and Other Property Operators Industry?

    Operators in the industry are primarily engaged in leasing industrial and other commercial property (excluding office and retail property).

    Industry Products
  • Secondary production buildings and factories operation
  • Warehouses and distribution centres operation
  • Agriculture and aquaculture buildings operation
  • Logistics centres operation
  • Other property operation
  • Self-storage facilities operation
  • Industry Activities
  • Industrial property renting or leasing (as owner or leaseholder)
  • Agriculture and aquaculture buildings renting or leasing
  • Factory renting or leasing
  • Logistics centres renting or leasing
  • Self-storage renting or leasing
  • Warehouse renting or leasing
  • Transport distribution centres renting or leasing
  • Other commercial property 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
  • Business confidence index
  • Total merchandise imports and exports
  • Business inventories
  • year bond rate
  • Demand from superannuation funds

  • Current Performance
  • Property value

    and yields

  • Industry demand
  • Income and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthy demand conditions
  • Supply and demand
  • Profit and competition
  • Table: Industrial and Other Property Operators Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Wholesale Trade
  • Integrated Logistics

  • Key Selling Industries
  • Air Conditioning and Heating Services
  • Electrical Services
  • Painting and Decorating Services
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • Warehouses and distribution centres operation
  • Secondary production buildings and factories operation
  • Other property operation
  • Logistics centres operation
  • Agriculture and aquaculture buildings operation
  • Self-storage facilities operation
  • Chart: Industrial and Other Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Transport and logistics companies
  • Manufacturers
  • Other companies
  • Resource firms
  • Health companies
  • Chart: Major Market Segmentation for the Industrial and Other 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 Industrial and Other Property Operators

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial and Other 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 Industrial and Other 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 Industrial and Other Property Operators Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Firb
  • The Foreign Investment Review Board (FIRB) is the government body that examines investment proposals by foreign individuals and makes recommendations regarding their eligibility to the Treasury.
  • Rental Income
  • The amount (in monetary terms) of rent earned by a property.
  • Rental Yield
  • Measures rental income from a real estate investment in relation to purchase price (or current valuation).
  • Vacancy Rate
  • The amount of industrial space unoccupied as a percentage of total space.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial and Other Property Operators market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Industrial and Other 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 Industrial and Other 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 Industrial and Other 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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