A critical window for strategic change: Highlights from CBRE’s 2024 APAC Office Occupier Survey

This article was co-authored with Luke Moffat, Head of Advisory & Transaction Services, APAC.

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With occupiers in Asia Pacific noting that office attendance and utilisation have reached a steady state, and as companies seek to balance cost savings with enhancing employee experience, now is an opportune time to upgrade workplace transformation initiatives and drive strategic change. This is a key theme the emerged from CBRE’s newly launched 2024 Asia Pacific Office Occupier Survey, which features insights from 130 corporate real estate executives across Asia Pacific on the latest workplace trends and implications for the region. Below are five key takeaways from the report:

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1) Office attendance has reached a steady state

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More than 60% of respondents reported that their office attendance has reached a steady state, reflecting a widespread acceptance of flexible and hybrid working models as the future of work.

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The survey also finds that Tuesdays and Wednesdays see the highest office attendance rates across Asia Pacific, except in mainland China where attendance is the highest on Mondays. Fridays show the lowest attendance, suggesting that companies may need to implement initiatives to maintain vibrancy and engagement for those who choose to come in, potentially increasing turnout over time.

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2) Peak office utilisation in Asia Pacific is ahead of other regions

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43% of respondents reported that their companies have achieved a peak utilisation rate of 80% or higher. This is higher than what is being observed in both the Americas and Europe. This trend presents opportunities for companies to recalibrate their workplaces to align with evolving work styles and attract top talent. Companies should rethink how they measure and interpret office utilisation to accurately estimate current and future space needs. With hybrid work patterns leading to uneven attendance, it is essential to maintain a vibrant environment during off-peak times while accommodating maximum capacity without compromising the work experience.

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3) Cost remains a critical factor influencing both lease renewals and relocations

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50% of respondents cited better lease terms and rents as well as cost savings as the primary motivation for relocating to new offices. We are seeing Asia Pacific occupiers seizing cost saving opportunities in tenant-favoured markets to upgrade to higher quality buildings in better locations with minimal cost escalation. Despite occupiers’ financial concerns, 58% of the surveyed companies are committed to enhancing employee experience and 45% focused on boosting employee productivity.

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4) The use of unassigned seating continues to grow

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Unassigned seating (hot desking and activity-based working) and collaborative spaces are emerging as affective ways to boost workplace efficiency. Companies are increasingly adopting flexible seating and higher desk sharing ratios to achieve this goal. In addition, nearly half the surveyed companies plan to expand their use of flexible spaces in the next three years, with interest in utilising on-demand event spaces.

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5) ESG and tech adoption remain in an early phase

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While the role of technology in supporting the workplace experience is well recognised, many companies are struggling to implement coherent digital strategies. AI adoption is also at an early stage in Asia Pacific – 39% of surveyed larger companies fall under the Observer category, which is a good start on the AI journey. We expect to see this space change significantly over the next 12 months as organisations continue to experiment with how they use AI.

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Sustainability is another area of focus for occupiers, and we continue to observe not just a flight-to-quality for office space in Asia Pacific, but also a ‘flight-to-green’ trend. The more proactive landlords are therefore offering green building and wellness certifications, green lease clauses, electric vehicle charging stations, and various energy-saving features to attract occupiers to their assets.

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Read our 2024 Asia Pacific Office Occupier Survey for more insights.