"Despite a slowdown in rental growth and a recent increase in vacancy rates, strong off-market activity shows investor conviction for industrial remains unwavering."

"Office capital values in Australia continue to adjust to the higher interest rate environment but premium assets are performing better than A grade and secondary assets."

"Industrial remains a high conviction theme, with recent investor surveys revealing a growing preference for the sector, driven by a convergence of structural and cyclical tailwinds."

"In our new Spotlight on 2024 report, we reflect on where we are in the cycle, where we are headed and the capital market impacts facing commercial real estate in Australia. We also take a look at the property sector trends to watch in 2024 and highlight our top investment picks for core/core plus, value- add and opportunistic investment strategies."

"While the market continues to adapt to the rapidly evolving economic environment, investors retain a strong interest in the sector and the fundamentals support its long-term growth."

"Office capital values in major Australian markets are adjusting to the higher interest rate environment but with a significant lag compared to major overseas markets."

"Industrial has cooled but remains hot. The resilient strength of the sector, fuelled by Australia's demographic tailwinds, consistently places it at the forefront for investors seeking strategic capital allocation.”"

"Varying occupier demand in the major CBD markets points to a mixed outlook across the country as tenants gravitate towards centrally located prime space."

"The strength in the occupational market, with its historically low vacancy rate, persistent rental growth and rebound in macro drivers, is sustaining investor interest and attracting new capital."

"In the 2023 Spotlight report, Savills Research looks at the key occupier and capital market impacts and trends for Australia and New Zealand’s commercial real estate markets. Will investment activity rebound in 2023 and what sectors will benefit from long-term structural tailwinds?"