Technology Redefining Hong Kong’s Workplace And Workforce

Technology has emerged as the primary catalyst for a long-term commercial real estate revolution across Hong Kong and the Asia Pacific region. Increasingly, corporations 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 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.

“In Hong Kong, where decentralization continues to be a trend, we are already seeing an increasing number of local firms and MNCs attaching greater importance to quality workspaces and innovative workplace strategies,” said Ed Peters, Senior Director, Workplace Solutions, CBRE Hong Kong. “While location remains important, the quality of a building and the technological capabilities of an office will become a greater concern for occupiers.”

Major findings of the report:

• Location is no longer everything: Location has long served as a major determinant of where business is conducted but technology innovation and availability of human capital are changing locational preferences.

• Technology puts people at the center of the workplace: The move towards a tech-enabled workplace is driving a stronger emphasis on improving the end-user experience. More than half of occupier respondents want a more customized workplace environment that adapts to the needs of their people.

• Mobility is rewriting office demand: As mobile working takes hold across Asia Pacific, companies will create office environments that improve staff satisfaction and comfort. The user experience will influence real estate strategies, and technology will enable employees to customize their working location, allowing them greater flexibility in choosing, how, when and where to work. Based on CBRE research, corporates will increase headcount in IT professionals and outsourcing/offshoring, whereas a net decline is expected in the back office function.

• Landlords are the enablers of change: Occupiers are the activist in changing the workplace environment. Landlords must partner more closely with tenants when developing smart buildings, engaging with tenants at the planning stage to ascertain the features and technology they require. Incorporating technology in new buildings will be relatively straightforward, but retrofitting older properties will be more challenging.

As a result of this growing awareness, approximately 50% of occupier respondents expect to require less office space in the future, primarily because of improved space utilization and a reduction in headcount.

However, while the volume of space required will decrease, CBRE Research expects to see occupiers demand higher quality space capable of encouraging greater collaboration, innovation and employee wellbeing.

“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.

Additional findings:

• Mobility as reality: 85% of respondents expect to see an increase in mobility in their future workforce via workplace formats such as Activity-based Working or AGILE Workplaces.

• IT rising: IT headcounts will increase and more multinationals are likely to use co-working spaces and incubation centers to improve their access to IT talent and innovative ideas.

• Internet of Things (IoT) gap: Most landlord respondents (84%) believe that technological innovation will drive stronger demand for smart buildings. In comparison, just 56% of occupier respondents indicated the same, reflecting the fact that tenants retain the view that smart buildings are nice to have but not essential.

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: www.cbre.com/TWJ  

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