Location Loses Prestige as Workplace Experience Pivots Towards Technology Advancements and Mobility; Landlords Best Positioned as Enablers of Change
Hong Kong, November 16, 2017 – Technology has emerged as the primary catalyst for a long-term commercial real estate revolution in Asia Pacific. Increasingly, corporations in the region are recognizing that the time to restructure their operations around new technology is now, and this will require innovative talent to facilitate the change. According to CBRE’s research, advances in technology are breaking the traditional expectations on location, and placing employee experience at the center of major real estate decisions across the region.
CBRE’s WORK_IT: Technology | Workplace | Jobs survey—the inaugural report within a broader series—concludes that technology will redefine Asia Pacific’s corporate real estate order in the coming years, with landlords likely to emerge as the greatest enabler of change. Employees’ preferences are rarely included in the corporate real estate decision-making process, however, according to CBRE Research, rapid technological advancement is reversing this process and individuals are increasingly acting as workplace influencers. As a result, corporations’ decisions are being informed by connectivity and accessibility as well as talent attraction and retention.
“The transitional role of technology in commercial real estate will continue to enhance and influence an evolving employee experience across Asia Pacific. While location will remain important, the changing order of real estate will require buildings and work spaces to be far more flexible and adaptable than before,” says Steve Swerdlow, Chief Executive Officer, CBRE Asia Pacific.
Major findings of the report:
As a result of this growing awareness, approximately 50% of occupier respondents expect to require less office space in future, primarily because of improved space utilization and a reduction in headcount.
However, while the volume of space required will decrease, CBRE expects to see occupiers demand higher quality space capable of encouraging greater collaboration, innovation and employee wellbeing. Landlords are comparatively more confident about the outlook for demand as the shortage of demand will come from co-working and start-up companies, with only 32% of respondents expecting to see a decline.
“Technology is enabling a more mobile workforce and requiring companies to build more agility into their headcount planning. As better space utilization, and weaker front and back office headcount growth will reduce overall demand for office space, landlords must act now to ensure they remain competitive. In time, they will emerge as the real catalyst for meaningful change,” says Dr Henry Chin, Head of Research, CBRE Asia Pacific.
CBRE’s WORK_IT: Technology | Workplace | Jobs report was based on the findings of approximately 100 face-to-face and phone interviews conducted by CBRE Research between June and August 2017. Respondents comprised 69% of occupiers and 31% of landlords to ensure a balanced view from both groups. Most respondents were senior corporate real estate staff. Also interviewed were individuals responsible for technology innovation within their organization. The marquee report is part of a wider series that will continue into 2018, examining the transformational impact of technology in the workplace. The report series includes country-specific survey reports for China and India, and a collection of articles on technological impact. More details here: https://www.cbre.com/TWJ
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