Office sharing gaining greater foothold in Asia-Pacific: CBRE
Shanghai hailed region’s top flexible space market while Indian and Southeast Asian cities post quick gains
Flexible office space continues to proliferate across Asia-Pacific, according to a new report by CBRE.
The total footprint of flexible office spaces across the region hit 54 million square feet (5 million square metres) or 3.4 percent of total office stock in the first quarter of 2019, the consultancy noted.
“As flexible space operators have already built critical mass for their service offering, CBRE expects 2019 to herald a shift in strategy from expansion to efficiency,” the consultancy said in a joint statement.
“This will include a focus on raising occupancy, customising enterprise solutions and forming creative partnerships with landlords.”
More: Smart city spending in Asia-Pacific to hit $35bn this year
Shanghai possesses the largest volume of flexible space in the region, with 9.1 million square feet reported across the Chinese metropolis or six percent of total office stock. In comparison, Beijing and Shenzhen have a flexi-space stock of 6.5 million square feet and 6.1 million feet, respectively.
Indian and Southeast Asian markets recorded the fastest growth in flexi-space volume over the last year. Bangkok, Mumbai, Ho Chi Minh City, and Delhi expanded their flexi-space footprints by more than 80 percent year-on-year in 2018.
Meanwhile, Seoul is home to 3.9 million square feet of shared office spaces or 3.9 percent of office stock. Singapore topped 2.8 million square feet in flexi-spaces, marking 4.6 percent of stock and edging out Hong Kong with 2.4 million square feet in flexi-spaces.
Recommended
Why everyone is moving to Selangor and Johor: Malaysia’s real estate comeback
Malaysia’s upturn in fortunes is especially prevalent in secondary destinations such as Selangor and Johor
Penang’s silicon boom: How the US-China tech war is supercharging local real estate
Penang’s booming semiconductor industry has created ripples within the local real estate sector
New leader, new opportunities: How Hun Manet is shaking up Cambodia’s real estate game
Hun Manet is overseeing decent economic growth and widening access to the country’s real estate market for foreigners
Singapore embraces inclusive housing reforms amid resilient demand
The Lion City’s regulatory strength continues to exert appeal for international investors