CBRE, world’s leading real estate consulting firm, announced the findings of its report, ‘H1 2024 Asia Pacific Flexible Office Market’. According to the report, Bangalore topped the list of 20 APAC cities with the highest flexible office stock at 15.5 mn. sq. ft. in the APAC region, including Shanghai, Seoul and Tokyo. Delhi NCR ranks second in the city list with a total stock 10.7 mn. sq. ft. (till June’24) of flexible office space. Recent growth in the Asia Pacific flexible office space market has been primarily driven by Indian cities, where the expansion is supported by the demand for managed solutions offered by domestic flexible space operators.
The report highlights that Delhi NCR witnessed the highest increase of 26 % in the flexible office stock since CY 2023. Other Indian cities also did exceedingly well with Hyderabad and Mumbai making it to the top 10 cities, with 6.8 and 6.1 mn. sq. ft. of flexible office stock, respectively.
The Asia Pacific flex space market continues to display stable growth, with the total stock of flexible office space in the APAC region reaching 89 million sq. ft. as of June 2024, an increase of 3.9% from CY 2023. The report points out that the APAC region is home to approximately 3,000 flex space centers. With strong leasing activity by flex space operators during this period, it is anticipated that the pace of new flex center openings will continue to be rapid throughout the remainder of the year in these markets.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Recent growth in the Asia Pacific flexible office space market has been primarily driven by Indian cities, where expansion has been underpinned by demand for managed solutions offered by domestic flexible space operators. The ongoing expansion of the flexible office space market in India highlights its significance as a strategic option for businesses adapting to the changing demands of workspace needs”.
Henry Chin, Global Head of Investor Thought Leadership and Head of Research, CBRE APAC, said, “Recent years have seen an evolution in business strategy by operators of flexible office space in Asia Pacific. In the post-COVID era, operators’ priorities have shifted towards income diversification, turn-key managed solutions, and maximizing centre utilization. Operators are increasingly differentiating their brands and exploring alternative deal structures, such as management agreements and CapEx contributions by landlords, to create more sustainable business models. Leveraging turn-key managed solutions enables operators to increase commitment terms while providing additional value to occupier solutions”.
The report also points out that despite a return to growth mode after the pandemic subsided, the Asia Pacific flexible office space market has now entered a period of normalized expansion compared to the pre-COVID boom years.
CBRE APAC study covered 20 major Asia-Pacific markets, including Japan, China, South Korea, Philippines, Hong Kong, Australia, Vietnam, Singapore, Australia, Taiwan, New Zealand and India.
* Total flex stock in the region is based on 20 major cities in Asia Pacific
Link to the report: H1 2024 Asia Pacific Flexible Office Market
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management, property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services and development services.
CBRE was the first International Property Consultancy to set up an office in India in 1994. Since then, the operations have grown to include more than 11,000 professionals across 15 offices, with a presence in over 80 cities in India. As a leading international property consultancy, CBRE provides clients with a wide range of real estate solutions, including Strategic Consulting, Valuations/Appraisals, Capital Markets, Agency Services, and Project Management. The guiding principle at CBRE is to provide strategic solutions that make real estate holdings more productive and economically efficient for its clients across all service lines.
