CBRE, the leading global real estate consulting firm today released the findings of its latest survey for Asia Pacific, WORK_IT: Technology | Workplace | Jobs. According to the survey, with technology emerging as a primary catalyst for long-term commercial real estate development, several corporates in Asia Pacific are shifting their business strategies towards hiring IT professionals and outsourcing high value work. More than 40% of respondents expect to see an increase in outsourcing/offshoring staff over the next three years. This presents a significant opportunity for India. An abundant talent pool of professionals who are already creating innovative technologies for corporates, coupled with our status as a key outsourcing destination means the future of corporate real estate in India is positive.
According to CBRE’s research, advances in technology are breaking the traditional expectations on location, and placing employee experience at the center of major real estate decisions across the Asia Pacific region.
Commenting on the survey findings and the opportunity for India,Anshuman Magazine, Chairman, India and Southeast Asia, CBRE said, “India’s corporate real estate landscape continues to witness significant growth backed by a stable economy. The sustained interest from EMEA and US corporates highlights India’s continued preference as a destination for office space. This increasing demand is further enhanced by the availability of abundant talent, quality corporate development supply, and alternative options for work spaces including co-working spaces. With technology playing a central role on how corporates strategize their future expansions, India has the unique advantage of having several of these aspects already available here.”
CBRE’s WORK_IT: Technology | Workplace | Jobs survey—the inaugural report within a broader series—concludes that technology will redefine Asia Pacific’s corporate real estate order in the coming years, with landlords likely to emerge as the greatest enabler of change. Employees’ preferences are rarely included in the corporate real estate decision-making process, however, according to CBRE Research, rapid technological advancement is reversing this process and individuals are increasingly acting as workplace influencers. As a result, corporations’ decisions are being informed by connectivity and accessibility as well as talent attraction and retention.
- IT rising: IT headcounts will increase and more multinationals are likely to use co-working spaces and incubation centers to improve their access to IT talent and innovative ideas.
- Internet of Things (IoT) gap: Most landlord respondents (84%) believe that technological innovation will drive stronger demand for smart buildings. In comparison, just 56% of occupier respondents indicated the same, reflecting the fact that tenants retain the view that smart buildings are nice to have but not essential.
“The transitional role of technology in commercial real estate will continue to enhance and influence an evolving employee experience across Asia Pacific. While location will remain important, the changing order of real estate will require buildings and work spaces to be far more flexible and adaptable than before,” says Steve Swerdlow, Chief Executive Officer, CBRE Asia Pacific.
As a result of this growing awareness, approximately 50% of occupier respondents expect to require less office space in future, primarily because of improved space utilization and a reduction in headcount. However, while the volume of space required will decrease, CBRE expects to see occupiers demand higher quality space capable of encouraging greater collaboration, innovation and employee wellbeing. Landlords are comparatively more confident about the outlook for demand as the shortage of demand will come from co-working and start-up companies, with only 32% of respondents expecting to see a decline.
“Technology is enabling a more mobile workforce and requiring companies to build more agility into their headcount planning. As better space utilization, and weaker front and back office headcount growth will reduce overall demand for office space, landlords must act now to ensure they remain competitive. In time, they will emerge as the real catalyst for meaningful change,” says Dr Henry Chin, Head of Research,
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