

#59 The future of commercial property: Demographic shifts you need to know
Apr 3, 2025
Simon Kuestenmacher, co-founder of The Demographics Group, dives into the critical demographic shifts reshaping commercial real estate. He discusses the rise of regional business hubs and the soaring demand for industrial spaces due to e-commerce growth. The conversation touches on the decline of CBDs and what that means for investors, as well as how generational wealth transfers are influencing younger investors' preferences. Kuestenmacher also explores the profound impact of AI and automation on the future of property investment strategies.
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Migration Drives Population Growth
- Australia's population growth relies heavily on migration, especially international students clustered in inner cities.
- Millennials are moving to city fringes due to housing scarcity, impacting office commute patterns and real estate demand.
Secondary Jobs Hubs Emerge
- Australian cities increasingly decentralize with secondary hubs to alleviate CBD congestion.
- Jobs cluster benefiting employers, but workers endure longer commutes, affecting work-life balance and office demand.
Urban Sprawl Shapes Retail Demand
- Australian cities sprawl due to low population density and reliance on cars, creating high infrastructure costs.
- Affordable greenfield development drives suburban retail demand; infill density remains expensive and slow.