Overview

Good work: Industry revenue has grown strongly despite falling office property yields

IBISWorld’s Office Property Operators market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$37bn
Annual Growth
2013 - 2018
10.3%
Annual Growth
2018 - 2023
Profit
Employment
72,498
Business
56,933

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 will likely increase from temporary office leasing, as businesses become more mobile

  • shopping_cartBUY NOW TO READ MORE

    Industry Analysis & Industry Trends

    The Office Property Operators industry has boomed over the past five years. Tenant demand has grown strongly, heightening property values. Increased investor activity, both domestic and from abroad, has further strengthened asset values. 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 expected to grow at an annualised 10.3% over the five years through 2017-18, to $37.1 billion. This includes a projected decline of 3.0% in 2017-18...

    shopping_cartBUY NOW TO READ MORE

    Industry Report - Industry SWOT Analysis Chapter

    The Office Property Operators industry is currently in the growth stage of its life cycle. Over the past five years, the industry has grown strongly, aided by a rise in property values in key markets, foreign investor interest and the rising investor demand for high yielding assets. Industry value added, a measure of the industry's contribution to the overall economy, is forecast to grow at an annualised 7.8% over the 10 years through 2022-23. This represents an outperformance of real GDP, which is expected to grow at 2.5% over the same period and is typical of a growing industry.

    The number of players participating in the industry has risen over the past five years, with strong revenue growth and high margins encouraging players to enter the industry. How..

    shopping_cartBUY NOW TO READ MORE

    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..

    shopping_cartBUY NOW TO READ MORE

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    Industry Products

    What is the Office Property Operators Industry?

    Industry companies 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
  • 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

  • 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
    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 (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
    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear