According to CBRE Asia Pacific, flexible office space is expanding rapidly across the entire Asia Pacific region driven by maturing occupier requirements for flexible working environments.
According to CBRE's report, Exploiting the Agile Revolution: Prospects for Landlords and Investors, advances in technology, a more mobile workforce and unpredictable economic growth are reshaping the business environment for occupiers, prompting investors to treat agile-based space as a long-term investment class within real estate portfolios.
“Investors in Asia Pacific real estate are taking a long-term view of flexible space. Investors are approaching occupier market shifts more strategically and re-balancing portfolios to reflect higher demand for agile space across the region,” said Steve Swerdlow, CEO of CBRE in Asia Pacific.
Flexible space can range from traditional serviced offices to relatively newer, agile formats, such as turnkey locations. Flex-space also includes co-working, which is registering the strongest growth and attracting the most interest from occupiers, according to the report.
Flexible space operators have grown rapidly in recent years, reaching a total footprint of just under 40m sq ft in 14 major Asia Pacific cities tracked by CBRE, which reports that growth in the sector between 2013 and 2017 stood at more than 50% year-on-year.