Exploiting the Agile Revolution: Prospects for Landlords and Investors
Investors and landlords must re-evaluate their investment strategies in response to the agile revolution. This report by CBRE Research identifies and explains the key approaches and challenges for core, value-added, and opportunistic investors seeking to capitalise on the boom in flexible spaces.
- The rapid growth of flexible spaces, which expanded by 57% in 2017 in major Asia Pacific markets, is altering the structure of office leasing demand. In H1 2018 alone, 15% of office leasing transactions in the region involved flexible spaces
- While less than half of coworking operators in Asia Pacific are profitable, larger and more established providers are performing well. Flexible space operators must ensure their business model is sustainable and can survive the next downward cycle.
- Selected transactions involving buildings with flexible spaces in major business districts show they do not command a significant premium over similar properties without flexible spaces. However, non-Grade A buildings with flexible spaces in decentralised locations can achieve a capital value premium of around 5-10% over similar properties without these spaces.
Metro Office H2 2018
Australia’s 3 largest cities are forecast to be the fastest growing cities in the developed world between 2025 and 2030. For this reason, metro office markets will play a pivotal role in accommodating the growth in white collar workforces over the long term. Industry sectors co-locating in metro markets is also having an impact on demand and is helping to reduce vacancy rates in many key metro markets. This report provides a snapshot of Australia’s major metro office markets.
CBD OFFICE Research & Forecast Report H2 2018
Key findings of the report include:
– The ‘Lower for Longer’ vacancy cycle in Sydney and Melbourne looks set to continue for some time yet
– Rental growth in these key markets has reflected, and will continue to reflect, the below average vacancy environment
– In the medium to long term, CBD fringe markets in our capital cities will play a bigger role in accommodating tenant demand
Office Capital Markets Investment Review – 2017/18
A review of retail investment activity across Australia and New Zealand in FY18.
Brisbane CBD Office Briefing
We are pleased to release the August 2018 Office Briefing Notes Brisbane CBD, which outline key metrics across the market along with detailed commentary on leasing, sales and development activity.
Sydney CBD Office Briefing
We are pleased to release the August 2018 Office Briefing Notes Sydney CBD, which outline key metrics across the market along with detailed commentary on leasing, sales and development activity.
Melbourne CBD office Briefing
We are pleased to release the August 2018 Office Briefing Notes Melbourne CBD, which outline key metrics across the market along with detailed commentary on leasing, sales and development activity.
Tenant Engagement Platforms: Digitising the Workplace Experience
This latest report in the WORK_IT series – the third in a mini-series looking at PropTech – examines the adoption of tenant engagement platforms by commercial real estate developers and occupiers.
JLL’s office report looks at
– What asset management strategies will be deployed in 2018?
– How relevant is the asset allocation story for real estate?
– How deep is the investment market?
– The return conundrum – lower, but how low?
– Should we take a closer look at non-CBD office markets?
– What sort of equity IRRs can investors generate?
Metro Office H1 2018
Colliers Metro Office H1 2018 focuses on the capital value growth that we have witnessed in our key metro office markets over the past year, and what are the key drivers for continued capital value and rental growth. Withdrawal activity continues to have an impact, and infrastructure investment is also providing long term upside in markets in Sydney and Melbourne.
CBD Office Research and Forecast Report | First Half 2018
Colliers CBD Office H1 2018 RFR discusses the impact that tenant efficiency measures and need for flexibility is having on the market. This trend is being most keenly felt in Sydney. Over the next supply cycle, those landlords that proactively meet this demand for customer focussed and flexible working environments will attract and retain the top occupiers. The education sector is also discussed, and its effect on office markets around the country. Demand from this sector is particularly important in Melbourne – 8 per cent of all enquiry in this market was from education providers, compared to 4 per cent nationally.
Australian Office Top Transactions 2017
Knight Frank Research highlight the top office sales transactions across the major Australian CBD’s and non-CBD markets over the 2017 Calendar Year.
2018 Office Leasing Trends and Outlook
Cushman & Wakefield
This report provides insights into landlord and tenant representative’s views on the office leasing markets in Sydney, Melbourne and Brisbane are reviewed. The report highlights both the latest thinking on markets and notes how opinions have evolved over the past 12 months.
The report comprises four sections covering:
- Market conditions and outlook
- The negotiation process
- Hot topics for the sector; and
- Building and location attributes tenants value
Respondents spanned both sides of the market, with Cushman & Wakefield surveying tenant representatives and landlords active in Australia’s eastern seaboard office markets of Sydney, Melbourne and Brisbane.
Office Leasing Trends and Outlook Survey 2018
Cushman & Wakefield
In the second annual Cushman & Wakefield Office Leasing Trends and Outlook Survey, landlord and tenant representative’s views on the office leasing markets in Sydney, Melbourne and Brisbane are measured. The report highlights both the latest thinking on markets and notes how opinions have evolved over the past 12 months.
Metro Office Research and Forecast Report H2 2017
Key findings of the report include
- Metro office markets are performing much like their CBD counterparts
- Sydney and Melbourne City Fringe precincts again lead the country in terms of rental growth
Demand for investments more evenly spread across the eastern seaboard.
Flexible Workspace, Coworking and the Future – 2017.
Generational shifts are shaping our working environments with 24% of Millennials currently in senior positions. By 2025, Millennials will represent 42% of the Australian workforce. The rise of activity based / agile working and the more recent phenomenon of coworking have been two of the most prolific changes to workplace design over the past five years. In Australia, coworking has gathered significant momentum over the past three years, with the number of spaces increasing by nearly 300% since 2013. Today Australia is home to 309 coworking spaces across six capital cities totalling 193,190 sqm equivalent to 0.6% of total office stock. This industry is anticipated to expand by at least 35% over the next 12 months with a number of international operators looking to establish their footprint here in Australia. With the growing importance on flexibility for both employees and employers, landlords are increasingly recognising the benefits and opportunity coworking operators can provide to their assets. Generation-Z will start to enter the workforce in 2018 and currently account for 25% of the Australian population. This generation will bring a new dynamic and property developers will need to adapt for increasing occupational density demands from occupiers as 1:6 sqm becomes the norm, together with health and wellbeing and hotel standard service expectations.
CBD Office Research and Forecast Report | Second Half 2017
Collier’s CBD Office RFR H2 2017 delves into the supply constraints currently impacting our two largest CBD office markets – Sydney and Melbourne – and what this means for face rents going forward. Both Sydney and Melbourne are currently experiencing very strong migration growth, and coupled with low supply, is resulting in good face rent growth for these two CBD markets. The report also outlines how the other CBD markets are slowly rebalancing, as tenant demand slowly improves. All of these markets are experiencing ‘flight to quality’, resulting in a better performing prime grade markets.
A Tale of Three Cities: Reviewing the CBD Office Market Composition of Sydney, Melbourne & Brisbane
Cushman and Wakefield
Australia’s eastern seaboard CBD office markets of Brisbane, Melbourne and Sydney total 12.1 million sq m of space across 1,055 buildings. While they share some similarities, they also exhibit structural differences. This Australian Property Insight compares and contrasts these markets across four metrics, highlights include Market size, Building size and age, Ownership and Tenant base.
When Will the Sydney CBD Office Market Achieve Equilibrium?
Over the last year, the Sydney CBD office market has experienced unprecedented rental growth on the back of tightening supply and steady demand, and while in the immediate term it appears that rents will continue to grow, the rate of growth is expected to moderate. Within the next five years, Colliers have identified a cycle of strong net supply and increased vacancy resulting in a more balanced office market.
Australian Office Investment Review and Outlook
The Australian office investment landscape presents many opportunities to satisfy diverse mandates. As you’ll read in the latest edition of JLL’s annual report, ‘Australian Office Investment Review and Outlook’, Sydney and Melbourne are the high growth markets, Brisbane and Perth offer counter-cyclical opportunities, while Adelaide and Canberra are the epitome of stable, lower risk markets.
World Office Yield Spectrum – 1H/2017
The 1H17 Savills/Deakin World Office Yield Spectrum Report compares more than 50 markets across the Asia Pacific, Europe and the US on market yields, effective yields and accretion; and offers buyer profile and sales volume breakdowns.
Sydney CBD Office & Hotel Ownership
20 December 2016
Offshore buyers have acquired 41% of the total office transaction by value in the Sydney CBD since January 2016. 32.9% of the CBD office stock by NLA is under foreign ownership as at November 2016, up from 32.2% in November 2015.
Conversion of office buildings has been the primary source of new supply of hotel rooms in the CBD over the past 12 months. Offshore investors hold 87.6% of 4 and 5 star CBD hotel rooms as at November 2016.
Australia Occupier Survey
In order to better understand the drivers informing occupiers’ future real estate strategies CBRE set out to identify and measure the current and emerging factors driving occupiers’ “stay or go” decision-making. What does it take to capture tenant loyalty in today’s rapidly changing world of work? As an occupier, how do you optimise your real estate strategy for business success?
• What future real estate strategies are occupiers planning to implement to support business strategy?
• How are buildings measuring up in terms of importance versus satisfaction across a range of building selection criteria?
• How are workplace formats evolving and do they impact on business performance?
• Do occupiers value wellness and is it delivering better business outcomes?
• What is the next frontier in customer service delivery and experience?
• What motivates occupiers to stay put or relocate?
The Revolution Is Upon Us – The Exponential Changes in Commercial Property
Be under no doubt, we are in the midst of a global revolution, driven by demographic, technological and economic factors that will see global cities take on a new context, the jobs market turned on its head, and the manner in which office space is constructed, leased, managed and occupied by end users changed forever.
There will be more change in commercial property in the next five years than we have seen in the last 30 years. In this paper, Knight Frank review the factors fuelling this revolution, identify current trends, and forecast what lies ahead for commercial property in Australia and beyond.
World Office Yield Spectrum – 1H/2016
This is the third edition of the Savills/Deakin World Office Yield Spectrum Report. The report compares 47 cities across the Asia Pacific, Europe and the US on market yields, effective yields and accretion; and offers buyer profile and sales volume breakdowns.
Global Cities: The 2016 Report
Global Cities is Knight Frank’s annual study of the real estate markets of the world’s 26 leading business cities. This year’s report looks at the implications of rapid urbanisation on real estate demand. Matching the UN forecasts for urban population growth of 380 million people by 2020 will require building 15 cities the size of Sydney every year.
Global Cities: The 2016 Report, profiles the mega infrastructure projects coming up to support this expansion; examines the rising costs of renting office skyscrapers, looks at the new wave of modern offices intended to improve staff morale and productivity, and identifies five future global property investment trends.
Office: The Rise Of The Tech Hub
Richard Lowe – IPE Real Estate Magazine
A global tech boom is creating vibrant new city office districts. But will they stand the test of time?
Metro Office Research And Forecast Report | Second Half 2015
The latest Colliers report examines the key trends influencing metro office markets across the country, including:
- Why sales are at their highest proportion of total office sales since 2009?
- Why offshore purchasers are now diversifying into metro office markets?
- What are the key precincts attracting the greatest levels of capital?
World Office Yield Spectrum
Savills have released the 2nd edition of the Savills/Deakin World Office Yield Spectrum Report. It compares 43 cities across Asia, Europe, the US and Australia on market yields, accretion and risk; and offers buyer profile and price breakdowns.
CBD Office Research And Forecast Report | Second Half 2015
Colliers six monthly report examines the key trends influencing CBD office markets in Australia and New Zealand. Colliers looks at:
- Who are the new tenants dominating office space?
- How are their needs different to traditional CBD occupiers?
- What are owners doing to respond to this change?
How You Work – The Flexible Office Industry: Its Impact On People, Places And Workspaces
Following the DTZ Coworking Revolution report published last year, DTZ have continued to track the trends driving demand not only for Coworking, but also the wider Flexible Office sector. Flexible Office operators are expanding rapidly due to the global popularity of the business model. Interviews with providers, landlords, corporates and small companies illustrate that Flexible Offices have become a fully-fledged alternative to the traditional office. This report sets out to explore the trajectory of the Flexible Office from the Business Centre of the 1980s to the Coworking space of the twenty first century. Analysing the key determinants of growth in London, New York, Berlin and Shanghai, and assessing the impact of modern cultural trends on the demand for flexible working. We investigate the extent of this demand, not only considering its impact on the Coworking and serviced office industries, but real estate investors, landlords and corporate organisations.
Office Market Report
Property Council Of Australia
The Property Council has compiled a comprehensive inventory of all useable office space in over 25 office markets across Australia. The PCA every six months audits each of the office markets to determine total stock, vacancy, supply, withdrawals and absorption. A wealth of statistics that provide a snapshot of the health of each of the major office markets.
Building Better Returns Research Report
University Of Western Sydney (UWS) And The University Of Maastricht, Netherlands
Research commissioned by the Australian Property Institute (API) and the Property Funds Association of Australia (PFA) is the first major Australian study to assess the added value of green office buildings in their financial performance. The research was undertaken by the University of Western Sydney (UWS) and the University of Maastricht, Netherlands in conjunction with Jones Lang LaSalle and CBRE.
The report identifies the future challenges and opportunities for the green office building agenda in Australia and provides the economic rationale for sustainable property investment and development.
Yield comparisons For AP Office Markets – Standardising The Cross-Border Metrics Globalising Real Estate Markets Require Robust And Consistent Cross-Border Valuation Benchmarks.
Globalising real estate markets require robust and consistent cross-border valuation benchmarks. Yields, widely-used as a benchmark of value for comparisons between markets, can conceal a range of factors such as varying lease duration, escalation clauses and rent-free incentive periods that materially influence investment performance between markets and through time. In a paper to the U NSW Real Estate Conference, Dr David Rees shows how adjusting for these factors provides a more consistent basis for yield comparisons across some of the major Asia-Pacific office markets.