Overview

Propped up: Industry revenue has grown strongly despite falling office property yields

IBISWorld’s Office 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.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$33bn
Annual Growth
2012 - 2017
10.6%
Annual Growth
2017 - 2022
Profit
Employment
69,109
Business
56,039

Industry Threats & Opportunities

  • Strong foreign investment helped operators expand their property portfolios, increasing earnings
  • Prime office locations in areas such as Sydney and Melbourne have displayed strong price growth
  • Competition is likely to increase from temporary office leasing, as businesses become more mobile

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    Industry Analysis & Industry Trends

    The Office Property Operators industry has boomed over the past five years. Tenant demand has grown strongly, boosting property values. Increased investor activity, both domestic and from abroad, has further strengthened asset values and firmed property yields. While large growth in supply is still some way off, foreign investors have played a large role in stabilising the industry's operating environment. Pension funds and sovereign wealth funds, and local superannuation funds also invest in office property due to the steady returns.

    Industry revenue is forecast to grow at an annualised 10.6% over the five years through 2016-17, to reach $33.0 billion...

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    Industry Report - Industry Analysis Chapter

    The Office Property Operators industry has grown strongly over the past five years, driven by high demand and returns in the key Sydney and Melbourne markets. Industry revenue is forecast to grow at an annualised 10.6% over the five years through 2016-17, to reach $33.0 billion. This includes forecast growth of 5.6% during the current year. Demand for rented office space is forecast to strengthen during 2016-17 as Australia's white-collar workforce continues to expand, boding well for the industry. However, not all industry operators have performed well over the past five years, with high vacancy rates causing problems for operators in Perth and Brisbane.

    ..

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    Additional Insights for the Office Property Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Office Property Operators Industry 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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    New Zealand Special Report

    Industry Products

    What is the Office Property Operators Industry?

    Companies in the industry are primarily engaged in leasing or renting office property.

    Industry Products
    Prime CBD offices
    Prime suburban and regional offices
    Secondary CBD offices
    Secondary suburban and regional offices
    Prime other major market offices
    Secondary other major market offices
    Industry Activities
    Office space renting or leasing as owner or leaseholder
    Office building renting or leasing as owner or leaseholder

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Office Property Operators Industry Revenue Outlook

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

  • Products & Markets
    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
  • Secondary CBD offices
  • Prime CBD offices
  • Secondary suburban and regional offices
  • Prime suburban and regional offices
  • Secondary other major market offices
  • Prime other major market offices
  • Chart: Office Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Governments
  • Finance and insurance firms
  • Property and other business service providers
  • Mining, utilities and industrial firms
  • IT and communications firms
  • Chart: Major Market Segmentation for the Office Property Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Office Property Operators Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Australian Real Estate Investment Trust (A-Reit)
  • A trust usually listed on the ASX, which holds a portfolio of real estate, allowing investors to buy units in the trust.
  • Capital Gain
  • A profit from a sale of real estate that exceeds its purchase price.
  • Depreciation
  • The fall in value of assets over their normal lifetime.
  • Occupancy Rate
  • The amount of office space occupied as a percentage of total available space.
  • Telecommuting
  • An employee who works from home, 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.
  • Why buy this report?

    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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