Agile Real Estate Infographic - 2021 Asia Pacific Flexible Office Market Overview
The total volume of flexible office space in Asia Pacific reached 74 million sq. ft. as of October 2020, accounting for more than 4% of total regional office stock, according to the latest data published by CBRE.
Although the growth of flexible office space has slowed in recent years, it is now firmly established as a strategic long-term real estate solution for a wide range of office occupying industries. 58% of respondents to CBRE’s recent “Asia Pacific: The Future of the Office Survey” intend to increase their use of flexible space in the coming years.
While demand for flexible office space will remain under pressure in the near term, the more prominent role of flexible space in the hybrid office; the emergence of capital light deal structures for operators; increased landlord participation; and the expansion of flex space into more asset types point to an upbeat long-term outlook.
CBRE expects landlords and flexible space operators to shift away from traditional lease structures in favour of forming partnerships or operating agreements. Several progressive landlords are already offering their own flexible office space in the form of owner-operated facilities and pre-built speculative suites.