Thought Leadership

The office sector is currently going through global structural change as organisations seek to adapt their physical spaces to new ways of working and adjust their corporate real estate decision making.  Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.

The guide tracks 37 key data centre locations across Asia Pacific with a comprehensive breakdown of costs covering land acquisition, advanced land clearance and demolition works, base build and fit-out construction costs. It offers a comprehensive analysis of the Asia Pacific data centre landscape, including key trends that are shaping the region’s data centre sector. This is the first year that Cushman & Wakefield has published its data centre development cost data.

Singapore’s retail e-commerce market is projected to grow at a 9.9% CAGR from 2022 to 2027, from S$5.8 billion in 2022 to a size of S$9.2 billion in 2027. Emerging trends such as shopping festivals, live selling and online grocery shopping have presented unique challenges for businesses in managing their logistics supply chain. With the adoption of omnichannel retail models and the outsourcing of last mile deliveries to 3PLs, the need for strategically located warehouses becomes paramount.

This report seeks to explain how the logistics sector is positioned to capture e-commerce demand, as well as potential recommendations for landlords and occupiers as they seek to future proof their logistics real estate portfolio.

This report was originally published in https://www.cbre.com.sg/insights/reports/the-evolution-of-e-commerce-and-its-impact-on-singapore-logistics-real-estate

More than three years after the onset of COVID-19, Singapore retail sales have recovered and exceeded pre-pandemic levels. However, foot traffic and retail rents have yet to fully recover. CBRE’s proprietary study finds that consumers are now visiting malls less frequently but for longer durations. Consumption patterns have also changed, driven by the proliferation of e-commerce, rising income levels and increased focus on wellness and ESG.

This report identifies the main trends shaping Singapore’s retail property market in the post-pandemic era and provides recommendations for retail occupiers and landlords to navigate the structural shifts and cyclical recovery of Singapore’s retail market. Government initiatives, the return of tourist spending and a wider selection of locations are also providing opportunities to all stakeholders.

This report was originally published in https://www.cbre.com.sg/insights/viewpoints/singapore-retail-in-the-post-pandemic-era-trends-and-opportunities

The electric vehicle (EV) market in Asia Pacific has grown significantly over the past two years, with the region accounting for nearly two-thirds of global EV sales in 2022. 

As EV adoption continues to gather pace, demand for public charging infrastructure in Asia is also rapidly increasing, primarily due to the prevalence of apartments where the installation of private chargers is subject to regulatory restrictions and administrative barriers.

The growing number of EVs in Asia Pacific will require a significant increase in charging facilities. CBRE estimates the number of public charging points across the region will rise from around 2 million in 2022 to around 10 million by 2030.

All of these converging trends present a significant opportunity for real estate owners and investors to gain access to or expand their presence in the EV public charging infrastructure market.

This report was originally published in https://www.cbre.com/insights/reports/how-will-electric-vehicles-impact-real-estate-in-asia-pacific

Explore the Q3 2023 report on India’s commercial office and residential sectors. Commercial leasing hits 16 MSF, while the residential market maintains robust sales, but affordable housing demand decreases.

• Residential demand in Q3 2023 trended up significantly to 82,612 units, 12% higher in YoY terms and 7% higher compared to the preceding quarter.
• It is particularly noteworthy considering that it also constitutes an almost six-year high in quarterly sales volumes. Sales traction was higher across all markets in YoY terms.
• Price levels have also grown in tandem with demand across all markets in YoY terms. Price levels in Hyderabad saw the most significant rise at 11% YoY as focus increasingly shifts toward the development of premium high-rise properties.

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.