Demand For Traditional Office Space Up In Asia Pacific
ASIA PACIFIC – A survey carried out by CBRE indicates that demand for traditional office space across the region has increased, but the appetite for flexible workspace continues its downward trend, reported The Business Times on Monday afternoon (20 September, SGT).
Based on the real estate consultancy’s Asia Pacific Market Sentiment Survey for this month, sentiment in most office markets across the region strengthened or remained stable, with India and mainland China witnessing the most upbeat sentiment.
As a matter of fact, around 38 percent of 158 office market professionals surveyed said they saw more demand for more office space as gleaned from the 5 biggest enquiries received in August. About 52 percent of the respondents experienced “neutral enquiries” like relocation, lease renewal, lease restructure, and renewal vs relocation analysis.
In comparison, merely 10 percent of received enquiries related to subleasing or downsizing workspace.
Aside from that, the polled office market professionals revealed that the volume of tenant enquiries didn’t change even though site visits declined after the implementation of COVID restrictions, especially in Australia, Japan, and Southeast Asia.
Furthermore, rents of office space also improved so far in September and the growth was primarily driven by Singapore, mainland China, and India. The period under review also witnessed greater pressure to raise rental incentives, especially in India and mainland China.