Apac office occupiers still willing to pay higher rents for quality locations: Colliers

This comes regardless of tenants being a lot more cost-conscious. Colliers emphasize that top of mind for Apac business leaders is how to optimize assets and increase savings and take growth, while contending with obstacles like rising cost of living, competition for ability, the need to digitalise, and the increasing pressure of temperature adjustment.

In its article, Colliers maps its concerns for office space tenants looking to achieve price financial savings. These include lining up workplace strategy to business goals, consolidating room, monetising non-core properties, disposing of or sub-leasing extra area, and buying technology and smart solutions for far better place usage.

It additionally accentuate that prioritising durability initiatives and pushing employee interaction and satisfaction will further contribute to inhabitants achieving cost financial savings.

“Amidst this situation, offices these days, albeit with much greater labor force flexibility, continue to be the epicentre of the services culture, with moving decisions being underpinned by ability method and ESG objectives,” observes Mike Davis, managing supervisor of occupier services for Apac at Colliers.

In the middle of this atmosphere, Colliers thinks inhabitants could make use of the unpredictability out there in 1H2024 to bargain their needs, avoiding favorable rental fee reversions in the future.

In Singapore, Colliers mentions that a trip to top quality and minimal pockets of room prompted a rally in leas in 1Q2024. Core CBD fee and Grade-A leas increased 0.7% q-o-q to $11.57 psf each month after 2 consecutive quarters of downtrend.

Altura EC Bukit Batok West Avenue 8

He prepares for landlords to deal with growing competitors in the near term as even more source comes in, while new flexible work guidelines may urge more firms to right-size according to their needs.

Regardless, the market continues to be mixed, says Bastiaan van Beijsterveldt, Colliers’ regulating director for Singapore. While rental fees in quality structures in excellent areas are standing up, rental expectations have actually softened for structures with persistent vacancies and high upcoming additional spaces.

Office occupiers around the Asia Pacific (Apac) region are still ready to pay increased rental fees for premium and amenity-rich places, according to an April research study file by Colliers.