Australian Office Investment
Review & Outlook
Take a deep dive into the key trends that impacted commercial office investments in 2019.
Some of the key insights into the report includes:
Transaction volumes smash through the AUD 20 billion mark:
The Australian office sector surpassed 2018 transaction volumes (AUD 19.87 billion) and established a new high watermark for volumes in 2019 (AUD 22.50 billion).
The Australian office sector has witnessed the rise of the mega-deal:
Multiple capital sources competed for assets in 2019 with strong activity from A-REITs, unlisted funds, private equity firms and sovereign wealth funds. The number of megadeals (defined as those in excess of AUD 400 million) spiked with 14 deals recorded – well above 2017 (three deals) and 2018 (eight deals).
Offshore investors were net sellers for the first time since 2006:
Offshore investors remained active participants on both sides of the ledger in 2019. However, 2019 was the first time since 2006 that offshore investors sold more assets (AUD 11.19 billion) than they acquired (AUD 9.21 billion). Canadian capital sources were active vendors with Brookfield, CPPIB and Oxford Properties all divesting Australian office product.