Why the next 3 years are crucial for the office property sector

from Real Estate Asia 2022

No ‘one size fits all’ in hybrid workspaces

Over half of APAC firms say remote working is likely to be available to all by 2025

ASIA PACIFIC

Companies will look across their real estate portfolios to rethink their office spaces, invest in new technology and prioritise sustainability, as hybrid work becomes more entrenched in corporate culture, according to new research from real estate consultant JLL.

The Future of Work report reveals the trend towards dynamic working continues, with 56% of organisations in Asia Pacific saying that they will likely make remote working available to all employees by 2025 and corporate real estate (CRE) executives saying that successfully operating hybrid work will be the most important strategic priority over the next three years. This includes exploring flexible space options, with the average proportion of flexible spaces in Asia Pacific expected to grow between now and 2025.

“The next three years will prove to be an inflection point for real estate as businesses plot their future path and rethink the purpose of their portfolio,” said Jordi Martin, CEO, JLL Work Dynamics, Asia Pacific. “The changes accelerated by the pandemic represent an opportunity to pause, think about a long-term real estate strategy and how it aligns with future business priorities.”

According to JLL’s research, the shift to hybrid work has become a marker of change in the workplace, placing greater emphasis on how companies can support employee mental well-being and maintain productivity. Additionally, the findings showed that 80% of organisations in Asia Pacific agree that quality space is a top priority as high-quality spaces are best suited to facilitate the kind of workplaces, health and well-being amenities, and sustainability credentials employees and corporates increasingly need.

Alongside an increasingly hybrid world of work, total headcount and real estate footprint is also expected to grow. The focus for companies will be on investments in quality spaces to ensure the long-term success of hybrid work.

“As the office continues to evolve post-pandemic into a destination for collaboration, occupiers will need to continue increasing their investments in creative spaces,” said James Taylor, Head of Work Dynamics Research, Asia Pacific.