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Internet companies account for the majority of new office space leasing in Q2 2014 in Asia, outdoing multinational banks, a report from Cushman & Wakefield (C&W) said as cited in media reports.
Tech firms such as Amazon and LinkedIn accounted for 21 percent of the space leased during the said period, surpassing the financial sector which made up 14 percent, said the property consultancy.
In addition, internet companies exceeded their combined figure in the previous three quarters by taking up 1.1 million sq ft of new office space in the second quarter.
For example, LinkedIn recently occupied the office space in Singapore’s financial district that was vacated by Barclays. Facebook established a presence in Beijing, while Amazon and China’s second biggest e-commerce firm JD.com leased over 300,000 sq ft of space in the Chinese capital.
Notably, tech firms are filling up the emptied space left behind by financial institutions in Asia, with the latter downsizing due to tougher regulatory environment, while internet companies are thriving. As a matter of fact, Asia is presently the fastest growing e-commerce market globally, with online retail sales in China forecasted to reach $1.5 trillion by year-end.
“One of the things that has been a catalyst of the recovery in the US is the growth in this sector. We’re seeing that also cascade to Asia Pacific,” said Sigrid Zialcita C&W’s Managing Director for research in Singapore.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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