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Workspace design may also move from cubicles to one that allows workers to meet, collaborate, brainstorm, and meet clients.
Despite the trend of companies adopting more flexible working options post-pandemic, many of the bosses in Asia Pacific would like their staff back to the office, reported Singapore Business Review (SBR) citing CBRE APAC.
“We do believe, after talking with Asia Pacific occupiers, that 70% of senior managers in APAC prefer people to be back in the office. As a result, companies will need to rethink their workplace design, and how they plan their workforces,” said Henry Chin, Head of Research at CBRE APAC as quoted by SBR.
He believes that a more collaborative layout will be more in demand instead of the old design which sees more solo cubicles or “me” spaces.
“In the old days, we all had quite a lot of space for individual cubicles or concentration areas. Going forward, the future of the office is for people to meet, collaborate, brainstorm, and meet your clients,” he said.
And with markets across Asia Pacific expected to be a tenant favoured one this year, CBRE APAC advises tenants to take advantage of the present market condition to renew, expand or consolidate before rentals start to increase.
“The good news in Asia Pacific is that we are leading global growth and we are better in terms of recovery according to economic projections for 2021,” he said.
In fact, CBRE expects Sydney, Melbourne, and Shanghai to rebound by 2022.
“Unfortunately, if you are in Singapore, you are probably already missing the boat because we will see huge rental contractions by this year and we will also see the swing back. So, the rent is going to continue to grow,” said Chin.
“Based on our latest leasing sentiment survey, we have seen a wider recovery in terms of leasing sentiment in all the major markets, with an increase in leasing inquiries and office site visits. Office-based industries remain relatively healthy in terms of financial status. However, we are expecting to see a wider recovery in the first half of this year. Most occupiers will probably be looking at expansion plans for the second half of 2021.”
Meanwhile, hotels and other properties that are fuelled by tourism are expected to see an improvement through the promotion of staycations.
“When we talk about the tourism sector, we have to realize that travel restrictions and social distancing measures will continue to weigh down the short-term outlook. But we are seeing revenge staycations in some major markets in the region, so I’m not so bearish,” said Chin.
Revenues for retail properties, on the other hand, are expected to be recovered by the second half of 2021.
“We do believe retail, particularly in Asia Pacific, is also here to stay because most Asians love shopping. The shift to e-commerce is fundamentally changing shopping behaviours. As a result, when we talk to retailers, they tell us they are going to redefine their online offerings,” he said.
“In the study we conducted towards the end of last year, 50% of retailers in the region said they want to resume their expansionary plans in 2021. They are predicting the assessed revenue to be back to pre-COVID levels in the second half as well.”
Chin also noted that demand for logistics has now surpassed demand for commercial office spaces.
“This is the first time in seven years that we have seen logistics overtake offices as the most preferred asset class. As of now our forecast is a 10% increase in terms of value in 2021,” he said.
Nonetheless, he still sees a positive future for office spaces.
“Occupier sentiment is not as negative as what is often portrayed in the media. Based on our studies, I can tell you that 22% of Asia-Pacific companies say they want to expand their future office spaces,” said Chin.
He believes that the real test would be the flight to quality adaptation of companies, lessors and developers in offering such spaces.
“I think the flight to quality is top of mind right now. In the old days, landlords only focused on leasing the space and charging rent. But now, if you want to keep a good tenant, you need to look at your office building as a holistic asset, and determine what property management services you are going to offer,” he said.
“They need to make sure those companies are happy, and that these spaces enable people to come back to the office. That is crucially important.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg