APAC Employers Signal Renewed Appetite for Office Space as Workplace Patterns Settle, CBRE Finds

APAC Employers Signal Renewed Appetite for Office Space as Workplace Patterns Settle, CBRE Finds

A new survey from CBRE Group points to a growing share of Asia Pacific companies preparing to enlarge their office footprints, a sign that post-pandemic workplace strategies may finally be settling into a durable pattern across the region.

The findings, published via Institutional Real Estate, Inc., suggest that corporate decision-makers in the Asia Pacific region are moving past the extended period of uncertainty over hybrid work and remote arrangements. With workplace trends stabilizing, a notable cohort of respondents now plans to expand office space rather than downsize — a reversal of the defensive posture many occupiers held during the years when lease renewal decisions were repeatedly deferred.

For the region’s office landlords and investors, the survey offers a measure of reassurance. Asia Pacific office markets entered the post-pandemic era from a different starting point than the United States or Europe: hybrid adoption generally lagged Western markets, and many employers kept stricter in-office expectations. Even so, vacancy rates climbed in several gateway cities as tenants rationalized space and new supply delivered. A broadening inclination among occupiers to add space would be a meaningful demand signal for markets from Sydney to Singapore to Tokyo.

The report also arrives at a sensitive moment for the services sector that tracks these decisions. CBRE Group, the world’s largest commercial real estate services and investment firm, derives substantial revenue from leasing brokerage, facilities management, and project management — lines of business that benefit directly when occupiers commit to new or expanded space. Shares of CBRE were trading at $139.65 in recent activity, up 0.79% from the prior close of $138.56, valuing the company at roughly $40.5 billion.

CBRE’s research arm conducts regular occupier surveys across the Asia Pacific region, and its leasing brokerage franchise gives it a frontline view of tenant sentiment. While the survey reflects stated intentions rather than signed leases, occupier surveys have historically led actual leasing activity by several quarters, making them a closely watched indicator for office market forecasters.

The stabilization described in the survey does not necessarily imply a return to pre-2020 space standards. Many Asia Pacific occupiers continue to balance hybrid schedules with higher-quality, amenity-rich premises, and flight-to-quality remains a dominant theme in leasing discussions. But the shift from contraction to measured expansion — if it translates into transactions — would mark an inflection point for a property type that has spent much of the past four years working through excess space.

What to watch

• Follow-through leasing volume in major APAC office markets in upcoming quarterly broker reports, to see whether stated expansion plans convert into signed deals.
• CBRE’s next earnings release and management commentary on Asia Pacific leasing revenue trends.
• Subsequent CBRE occupier surveys for changes in expansion intentions and hybrid-work policies.
• Vacancy and net absorption data from gateway markets such as Tokyo, Singapore, Sydney, and Hong Kong.

Source: original release