Expert Insights | Asia Pacific Office Markets April 2024
From our Thought Leader Partner, Colliers
Unlocking tangible office real estate savings
Business leaders are currently dealing with the crucial question - how can they effectively optimise resources, maximise savings and drive growth as they navigate a dynamic business landscape in 2024. Their challenges remain compounded by unprecedented inflation, fierce competition for talent, and the rising pressures of digitalisation and climate action.
Amid this scenario Offices today, albeit with much higher workforce flexibility, remain the epicentre of the work culture, with relocation decisions being underpinned by talent strategy and ESG goals. In Asia Pacific, a much greater pull to the office is creating higher occupancy than witnessed in other markets globally – causing the continued upward pressure on office rentals across the region.
In this edition of our Expert Insights | Asia Pacific Office Markets April 2024, we highlight six priorities to achieve cost savings in office real estate. We also present the Colliers Q1 2024 Office Market Research Reports from key Asia Pacific markets, unearthing actionable insights for real estate leaders.
Whilst cost concerns have started to filter faster through the decision-making process, our research this year shows that occupiers across industries in the region are still willing to pay higher rentals for better quality offices and amenity-rich locations to drive talent acquisition. However, their space requirements may have reduced and therefore mitigating the overall cost impact.
The good news is, Asia Pacific is benefitting from more cost-conscious occupiers on a global scale with greater uptake from Global Capability Centres (GCCs), particularly for markets such as India where GCCs are expected to contribute over 40% of the total office leasing in the next 1-2 years. The region remains a dominant source and destination for global capital across asset classes, including Offices.