Thought Leadership

Occupier confidence is improving after one-and-half years. Prices are recovering with evident growth of 21% in a span of three months in Q3 of 2021.

Future Flex – A hybrid & productive workspace approach

Strategic agreements for operators

Traditional leases are giving way to models such as:
•Revenue-share model 
•Management contracts
•Hybrid model (fixed minimum rent plus revenue share)
Apart from these, some operators are seen to explore the franchise model, 
although that can pose some risk of brand 

Choice-based model for occupiers
Occupiers are evaluating the concept of ‘work from near-home’ through 
satellite and hub-and-spoke offices. We foresee that these offices will be an 
amalgamation of traditional leases and flex spaces. 
With gig economy gaining traction, we also predict the need for on-demand 
spaces, as occupiers would require space by the hour/week/month for certain 
teams. Such space requirements can successfully be driven by flex spaces. 

Customized deals for Occupiers
Occupiers are opting for tailor-made mandates with operators for future 
expansion and leasing. Flex operators will take up spaces and customize 
them as per the occupiers’ needs. However, at the same time, operators are 
likely to also incorporate and offer some proportion of ready buildings for 
immediate absorption by start-ups and entrepreneurs.

Report by Colliers & Qdesq

This article was originally published in https://www.colliers.com/en-in

The report evaluates the demand and potential of Affordable Housing in India by 2030 and speaks about the requisite steps that stake holders should take to meet this demand.

This article was originally published in https://www.knightfrank.co.in/

Key Occupier Trends

• Warehouse demand remains firm; net absorption sets new record
• Supply chain disruption delays decision-making in emerging markets
• Online retailers and 3PLs drive demand; occupiers strengthen last-mile capabilities
• Logistics space near transportation hubs keenly sought after

Key Investment Trends

• Purchasing activity continues to be strong; modern logistics properties remain primary focus
• More investors commit capital into logistics development funds
• Logistics capital values continue to rise
• Well-located older properties offer upgrading opportunities

This article was originally published in https://www.cbre.com/

Key Trends

• Purchasing activity continues to be strong
• Stabilised prime CBD offices remain sought after
• Solid demand for industrial assets drives further yield compression
• Selected investors display higher risk appetite for office, industrial and hotel value-added opportunities
• Banks in major markets remain accommodative; while those in Southeast Asia adopt conservative attitude

This article was originally published in https://www.cbre.com/

Key trends

• Retail sales growth slows
• Many retailers push back expansionary plans to 2022
• F&B dominates leasing demand
• Leasing in CBD areas remains limited
• Pandemic-related risk remains major concern
• Recovery to regain momentum as festive season nears

This article was originally published in https://www.cbre.com/

New Zealand’s recovery from the impact of Covid-19 got underway in 2021 however by this was derailed in August by the Delta variant, which returned the country into a nationwide lockdown, and resulted in the closure of the trans-Tasman bubble border.
 
Despite the Covid-19 challenges, transaction activity has remained buoyant with $300+ million sales YTD in 2021, characterised by firm yields, unsatisfied capital, and a scarcity of quality purchase opportunities.

This article was originally published in https://www.cbre.com/

Fukuoka’s residential market remains resilient

• Fukuoka has been the fastest growing city among major regional cities in Japan.
• The city’s compact and convenient layout, young demographics, and accommodating attitude towards new ideas attract students, workers, and entrepreneurs.
• With the leadership of its media-savvy mayor, Fukuoka is striving to become a leading city in Asia with start-ups, digital transformation, and redevelopment.
• The central areas, such as Tenjin and Hakata, have seen sound demographic growth, and redevelopment projects such as Tenjin Big Bang and Hakata Connected should further help to make these areas attractive.
• As a major beneficiary of inbound tourism until the pandemic, the progress towards the normalisation of international travel is a welcoming development for Fukuoka.

This article was originally published in https://www.savills.co.jp/

Following the COVID-19 pandemic in 2020, Australia’s anticipated gradual recovery in 2021 was derailed by the DELTA variant which returned Sydney, Melbourne and Canberra into extended lockdown and border closures nationally.

The lockdowns and associated travel restrictions have activated Australians to become “double vaccinated” with the 80% target to be achieved by December this year, which will then increase to 90%.

Restricted international travel will recommence in Australia in November 2021 and will gradually increase as travel bubbles are initially established, which will inevitably lead to normal international travel.

Despite the COVID challenges, transaction activity has remained buoyant with $1+ billion sales YTD in 2021, characterised by firm yields, unsatisfied capital, and a scarcity of quality purchase opportunities. 

This augurs well for improved conditions in 2022 after the summer break and we would expect that:

• Domestic leisure will return to key city destinations, having been absent for two years and to experience new hotel inventory
• Domestic leisure will continue to support the regional drive markets
• Corporate activity will begin to rebound in Q1 2022 and continue as Australia “gets back to business”
• International travel will resume and gradually build with IATA expecting that 2019 levels will be reached in 2023/24.

This article was originally published in https://www.cbre.com/

Investment sentiment continues to recover

North Asia led the region’s recovery with a strong flow of investment activity while Southeast Asian markets are anticipated to steadily reopen borders by implementing a variety of travel schemes.

• In Q3/2021, an APAC hotel investment volume of US$2.2 billion was registered across 43 transactions, up 12% yearon- year (YoY). 75% of the transactions were completed by domestic buyers. The top three most active markets this quarter were Japan, South Korea and Taiwan, together accounting for 51% of the total regional hotel sales volume. 
• With three transactions, Japan led the region with a total hotel transaction volume of US$590 million, a sharp increase compared to the same quarter last year which reported US$168 million. 
• Taiwan recorded US$265 million across six transactions. This reflects a decrease of 72% YoY, mainly due to the sale of Sunworld Dynasty, largest hotel transaction of 2020. 
• Reporting the highest number of transactions in the region this quarter, South Korea registered US$253 million across ten transactions.

This article was originally published in https://www.savills.co.jp/

The way we view offices is changing, but they remain pivotal to an organization’s growth. As we emerge stronger from a tough phase, we look at how office space absorption have changed over the last 30 months.

In this report, we observe leasing patterns pre pandemic and post pandemic. While leasing has declined from April 2020, there are some interesting trends that have emerged. Firstly, NCR and Bengaluru emerged as the most resilient office markets. Secondly, occupiers are renewing existing spaces, while postponing fresh leasing decisions. Thirdly, BFSI companies are continuing to expand their footprint, post pandemic.

Occupiers are looking to be in new-generation offices with modern amenities with focus on health and wellness. There will be more emphasis on flexibility, with occupiers keen to explore coworking spaces for a decentralized workforce.

The future is hybrid. Office usage patterns will change, and occupiers will become nimble to maximize efficiency. As occupiers devise their strategies, developers too will become more adaptable.

This article was originally published in https://www.colliers.com/