3 minute read
What is the five-minute workplace all about
WHY JP PROPERTIES ARE FAVOURABLE TO FOREIGN BUYERS
JAPAN
Against the backdrop of an overall market recovery, Colliers says soaring commodity prices and fluctuating exchange rates are changing the market sentiment.
Meanwhile, investments in major cities other than Tokyo such as Yokohama, Osaka, and Nagoya, are showing signs of recovery whilst crossborder investments remain strong.
There has been a flurry of activity amongst foreign investors, with M&G Investments committing JPY49.2 billion (USD378 million) to a 30-property residential portfolio in March 2022. In addition, Morgan Stanley and Lendlease invested significantly in new properties in Yokohama, whilst Gaw Capital acquired a residential portfolio spanning Tokyo and other major cities.
Hines, meanwhile, has revealed plans to develop a large logistics facility in Aichi Prefecture. At the same time, there continued to be net sales of J-REITs, resulting in highergrade properties being added to the market. For instance, Japan Real Estate Investment sold Harumi Center Building for JPY24.3 billion (USD187 million). And investment volumes appear to be on a gradual upward trend in major cities outside Tokyo.
Forecast
Supported by a weak yen and widening interest rate differentials, properties in Japan are becoming increasingly favourable to overseas buyers. Foreign investors, largely hailing from Europe and the US as well as Asia, have a pricing advantage over domestic investors, and so we expect investments to increase.
The relaxation of travel restrictions in the first half of 2022 has also made it easier for senior executives from foreign investment firms to visit Japan. This could facilitate swift decisionmaking and likely further accelerate cross-border investments.
Amenities around the office are a key consideration for landlords these days
What is the five-minute workplace all about
ASIA PACIFIC
When looking for a new office space, companies are not only looking at the quality of the space itself, but also the available amenities nearby. As employees’ expectations of the workplace evolve, this is now a key consideration for landlords and occupiers alike.
“Coming to work is no longer limited to the office,” says Mireille Wan, Senior Director, JLL. “Amenities within a five-minute radius from the workplace can transform the experience for returning employees and offer a differentiated experience from home.”
Wan was moderating a panel on the transformation of workplace experiences at the Future of Office event featuring industry experts who discussed a broad range of issues, from the amenities offered within a five-minute workplace to how buildings and offices can meet demands for space flexibility.
“The concept of the workplace has changed in the past two years, given the shift from working in the office, to working from home and now somewhere in between,” says Hui Min Chan, Director, DP Architects, at the Future of Office event.
The idea of a five-minute workplace is, however, not entirely new. Mixeduse developments, which allow people to live, work, and play within the same area, already offer a blueprint for how a five-minute workplace may look like.
Typically integrating retail, residential, and office spaces, mixed-use developments such as the upcoming South City Square in Australia, or Funan and Paya Lebar Quarter in Singapore, have become the benchmark for urban developments in recent decades.
“The progression of workplaces has shifted towards where you can work outside of your desk and your chair,” says Sam Okeby, Managing Director, Development, Asia, Lendlease, at the Future of Office event. “The expansion of mixed-use precincts creates the opportunity for places to work, whether that’s within a retail zone, or even within a yoga studio.”
With the workplace expanding beyond the internal office footprint, spaces within and around the office are equally important to the experience. “There’s a need to think about how these non-office spaces can be conducive for the work activity that needs to happen,” says Chan.
Flexibility matters
Like occupiers, landlords play a crucial role in supporting employees’ needs and expectations of the workplace as well.
“The question would be how we support our occupiers who are on the journey of workplace transformation,” explains Su Lin Wee, Executive Director, Head of Asset Management, Southeast Asia, PGIM Real Estate at the Future of Office event.
For companies to design the ideal workplace for their employees, landlords must be able to cater to high levels of flexibility necessary for the design and fit-out of spaces.
Landlords should be able to provide not only building amenities, but also flex areas and the infrastructural flexibility for occupiers to create their own space, says Wee.
The flexibility to adapt and reuse spaces with ease comes into play when changes are needed to match employees’ changing expectations of the workplace.
