Bangalore Emerges as the No.1 Preferred City For Office Expansi
Bangalore Emerges as the N0. 1 Preferred City For Office Expansion In Asia Pacific: CBRE APAC OCCUPIER SURVEY
New Delhi, April 19, 2018 – CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm today announced the findings of its latest CBRE Asia Pacific Occupier Survey 2018. According to the survey, multinationals are focusing on expanding in Bangalore and smaller cities across the country. Companies generally hold a positive view towards expanding their Asia Pacific office portfolio over the next two years. China and India remain the most preferred markets for expansion, followed by Singapore.
As per the results, 45% of respondents plan to expand, while 28% anticipate a reduction, although a large portion of the latter figure likely includes companies planning to grow by improving space utilization. Rapid technological innovation, evolving workplace concepts, and shifting employee expectations are becoming the new normal for regional commercial real estate, with these trends likely to spur ongoing office market growth for the next 24 months.
Rajesh Pandit, Head, GWS and Asset Services, CBRE India says, “With each year, India further establishes itself as one of the world’s most attractive markets for expanding occupiers. The strategies of multinationals to occupy more office space in Bangalore and emerging cities are testament to this fact.”
“A perfect fusion of solid portfolio expansion, an accelerating workplace evolution and a surge in digital enablement tools is delivering a generational mind-set shift in how occupiers view real estate,” says Phil Rowland, CEO of Global Workplace Solutions, CBRE Asia Pacific.
Occupiers are also taking greater advantage of wider workplace options to drive business performance and attract talent, but will continue to rely on landlord partnerships. Irrespective of whether occupiers are increasing or reducing space requirements, across Asia Pacific they are poised to commit more flexible corporate real estate solutions to align with company goals, according to respondents. As a result of this shift, landlords will increasingly serve as enablers of change and adapt to new demands in greater numbers.
“Landlords are becoming more invested in the new office market paradigm across Asia Pacific. They are structuring flexible lease terms to include flexible space providers as tenants, and further considering the specific needs and potential users of space at the project planning stage,” says Manish Kashyap, Managing Director, Head of Advisory & Transaction Services, CBRE Asia Pacific.
According to occupiers, three major trends will drive decision-making across Asia Pacific over the coming 24 months.
1. Solid Portfolio Expansion
* 45% of respondents plan to increase their corporate real estate portfolios in Asia Pacific in the next two years.
* Leasing space in existing buildings is the preferred means for companies to increase their footprint. Firms are also pursing built-to-suit opportunities and pre-committing to new buildings.
* Flexible office solutions are increasingly popular, with 33% of occupiers planning to increase their use of co-working space.
2. Acceleration of Workplace Evolution:
* The adoption of Activity-based Working (ABW) will increase to 78% over the next two years. Workplace settings and policies will see greater refinement.
* Collaboration remains the key driver of workplace strategy but an increasing number of companies are placing a stronger focus on achieving the by-products of collaboration, such as innovation and creativity.
* Companies are implementing space utilization analytics for more refined space planning.
* Increased focus on “Me” space for individual tasks to balance out collaboration spaces.
3. New Era of Technology
* 78% of respondents plan to increase their investment in