Organizations Focus on Flexible Real Estate Strategies Amid Continuing Economic Uncertainty
Hong Kong, June 29, 2017 – Flexibility to adjust corporate space in response to dynamic economic conditions is the top priority for multinational corporate real estate executives, according to CBRE’s 2017 Global Occupier Survey.
As concerns about the slowdown in China’s economy have subsided, Asia Pacific occupiers are now faced with other global policy risks, in particular whether protectionism will rise in the U.S. and how its subsequent effect on Asia Pacific’s outsourcing and export demand.
“An effective and flexible workplace strategy is particularly crucial for companies in Hong Kong, as the city’s open economy is vulnerable to downturns in international trade and global financial markets,” said Edward Peters, Senior Director, Global Workplace Solutions, CBRE Hong Kong. “Multinationals plan to put more focus on their workplace and space efficiency programs to increase their portfolio flexibility ahead of potential organizational or head count change.”
Growing Importance of Space Agility
While collaboration and talent attraction are still primarily driving workplace strategy, there has been a clear uptick in the pursuit of space agility. Some 40% of the global respondents cited that agility is increasingly important in workplace strategy, five percentage points up from last year.
Decreasing risk by driving agility in workplace design has been a key strategy for occupiers. In Asia Pacific, more than half of MNCs plan to implement activity-based working (ABW). The ABW approach offers greater space agility while increasing employee collaboration and connectivity.
ABW strategies involve the introduction of quiet zones, relaxation areas, collaborative spaces, wellness facilities and other amenities for employees to choose from in a bid to increase their engagement and productivity.
Workspaces that foster connectivity and collaboration were the most important factors for the Asia Pacific workforce, with 52% of respondents desiring offices that addressed this need.
“The way we work is changing and it is impacting the places where people work. 86% of respondents are reinventing or adapting their workplace standards with a goal of employee satisfaction” said Fiona Alexander, Director, Advisory & Transaction Services - Workplace Strategy, CBRE Hong Kong.
Growth of Shared Workplace
Future-proofing strategies include the adoption of a shared workplace model—the top reasons of which include: reducing costs (45%), reduced term needs (42%), and increased flexibility (41%).
While 30% of respondents across the globe currently deploy a shared workplace strategy, 45% cited that they will adopt this initiative by 2020. By 2020, shared workspaces such as co-working spaces are expected to overtake traditional serviced offices. In Asia Pacific, respondents see the most growth in business incubators and innovation centers, with 41% anticipating presence in incubation spaces by 2020 compared to 15% at present.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
