Thought Leadership

A fast-evolving landscape of geopolitical tension, elevated inflation, rising interest rates, and shifting policy developments presents both challenges and opportunities for investors navigating a wave of transformative change in international asset classes. In particular, as investment funds move to revise their strategies, the dynamic real estate (RE) markets of the Asia Pacific (APAC) are now drawing increasing attention, as managers seek to tap their historically strong track record for growth as well as their potential for portfolio diversification at a time of rising levels of market risk.

This report was originally published in https://www.capitaland.com/en/about-capitaland/newsroom/Perspectives/2023/Benefits-of-Diversity-APAC-Role-in-Investment-Portfolio-Growth.html

• Worries about artificial intelligence (AI) supplanting knowledge workers have created more pain for the office market.

• A broader view on the economic impact of AI should consider possible positive impacts.

• AI could boost worker productivity and economic demand — and thus demand for other types of commercial real estate.

CBRE’s 2023 Global Occupier Sentiment Surveys feature insights from more than 400 corporate real estate executives across multi-national and domestic companies around the world. Their insights on the future of work have identified five trends that will guide global organizations as they optimize their portfolios:

• People are using the office less frequently than they did prior to the pandemic, but attendance is continuing to rise.

• Globally, the office remains a core element of corporate culture.

• Focus on portfolio optimization means more than space downsizing.

• Occupiers trade quantity for better quality space.

• Occupiers seek more flexibility in lease terms and building services.

Survey results portend an increase in office attendance globally in the coming year, especially in markets where employee return has been lagging.

This report was originally published in https://www.cbre.com/insights/reports/2023-office-occupier-sentiment-survey-global-summary

Key findings

With new products like ChatGPT, AI’s potential to transform the global economy has captured the world’s imagination

• AI has enormous potential to reshape real estate, with near and long-term impacts ranging from the emergence of new markets and asset types to innovations in investment and revenue models.

• A rapidly expanding AI ecosystem and its supporting infrastructure will drive demand for real estate in different markets across the globe.

• PropTech adoption has laid a solid foundation for AI integration in real estate. Organizations will need to consider how they can harness AI strategically and ethically, piloting applications before scaling to deliver value.