Seizing the Value Creation Opportunities in Corporate Real Estate Sponsored Feature

Transformative trends shaping commercial property in Asia Pacific

By Mike Davis, Managing Director, Occupier Services Asia Pacific | Colliers

Amid the dynamic business environment in 2024, where innovation, sustainability, and strategic flexibility are central to creating value and seizing the opportunities, several transformative trends are shaping up corporate real estate (CRE) in Asia Pacific.

Here are the five key value creation opportunities that are expected to become increasingly influential in corporate real estate through 2024 and the year ahead:

1. Enhanced enterprise resilience

Organisations are prioritising flexibility in their real estate portfolios and designing workplace strategies accordingly to bolster resilience against market fluctuations and adapt to evolving organisational needs.

Actionable insights | Building flexibility in real estate portfolio to boost enterprise resilience

Assess actual physical space needs against your flexible work model.

Create flexible space designs that are adaptable and multifunctional.

Negotiate flexibility in lease terms, with options for space size, lease duration adjustments, renewal options, shorter lease terms and break-clauses.

Create provisions for subleasing and sharing space with other tenants to allow for additional income and flexibility in space usage.

Diversify location to reduce dependency on a single market, building adaptability to relocate or consolidate with changing business dynamics.

80% of CRE leaders globally intend to reduce or maintain their office space by 2026, signaling a broader trend towards flexibility and optimisation of real estate assets. (Source: Colliers Global CRE Strategy Benchmarking Report 2024)

2. Workplace transformation for talent management

The workplace, both physical and virtual, continues to evolve as a critical tool for attracting and retaining talent. The uptake in hybrid working models reflects shifts in organisational and societal norms towards flexible work arrangements.

Actionable insights | Leveraging workplace transformation as a powerful strategy to attract talent

Create collaborative, creative and innovative work environments with open layouts, flexible designs and dedicated areas for teamwork to attract dynamic talent.

Prioritise employee well-being with ergonomic furniture, natural light, wellness rooms, fitness facilities and healthy food options, signaling your care for better work-life integration.

Cutting-edge technology and digital tools enhance productivity and collaboration. Enhance further with smart building features and advanced IT infrastructure.

Sustainable practices in workplace transformation with energy-efficient systems, recycling programs and green certifications.

Company culture-led workplace transformation incorporating diversity and inclusion and other elements that reflect your brand identity and mission increasingly

59% of CRE leaders globally intend to use labour market analytics more proactively, reinforcing the importance of data-driven decision-making in optimising workforce management and operational efficiency. (Source: Colliers Global CRE Strategy Benchmarking Report 2024)

3. Artificial intelligence and data integration

The integration of data analytics and artificial intelligence (AI) is revolutionising real estate strategies, driving efficiency across the built environment, as well as optimising resource allocation and operational performance.

Actionable insights | Using AI to transform workspace for a competitive edge, manage

Portfolio Strategy with predictive analytics to continuously optimise portfolios.

Lease Administration with predictive lease management recommendations to drive portfolio impact.

Workplace Strategy with automatically generated occupancy and 3-D space options.

Location intelligence with proactive search for new and emerging talent pools and locations.

Transaction management with automated location options and workflows.

31% of CRE leaders globally see AI as a pivotal area to drive organisational transformation in the next five years, underscoring the increasing reliance on technology to drive innovation and streamline processes. (Source: Colliers Global CRE Strategy Benchmarking Report 2024)

4. Diversification in CRE partnerships

Companies are increasingly adopting multiple CRE partner models for real estate and facilities management to enhance service delivery and operational flexibility.

Actionable insights | Benefit from multiple CRE partner model, enable

Room for diverse expertise, tapping into specialised services and ensuring comprehensive coverage and tailored solutions.

Scalability and flexibility, particularly during times of growth, contraction, or expansion.

Innovation and best practices with each CRE partner bringing in unique insights, technologies, and collaboration opportunities.

Negotiation and cost effectiveness with players competing for the best results.

Performance monitoring frameworks that ensure accountability, alignment with organisational goals, and driving continuous service quality enhancements.

98% of CRE leaders globally expressed similar levels or increased outsourcing plans in coming years, indicating continued reliance on external expertise to augment internal capabilities and drive efficiency.(Source: Colliers Global CRE Strategy Benchmarking Report 2024)

5. Sustainability-focused real estate upgrades

There is growing momentum to upgrade legacy real estate assets and align with sustainability commitments to mitigate carbon emissions and prevent assets from becoming redundant due to regulatory changes.

Actionable insights | Sustainability initiatives create a more resilient and responsible workplace with

Tangible reduction in environmental footprint reduction, lowering operational costs and ensuring alignment with regulatory requirements and resource planning.

Improved efficiency and cost savings with smart building technologies and the use of sustainable construction and renovation materials.

Proactive regulatory compliance and risk management to reduce legal and reputational risks associated with non-compliance.

Engaging employees in sustainability initiatives to foster a sense of purpose and pride, ensuring job satisfaction, wellbeing, and talent attraction and retention.

Brand building with sustainable practices to enhance organistional reputation and strengthen relationship with stakeholders, while building trust and brand loyalty.

57% of CRE leaders globally are prioritising sustainability practices in making real estate decisions. (Source: Colliers Global CRE Strategy Benchmarking Report 2024)

Read the full report here and access Q2 2024 Office Research Reports for Australia, China, Hong Kong, India, Indonesia, Japan, Korea, New Zealand, Philippines, Singapore, and Taiwan.

For more insights and opportunities in corporate real estate, connect with Mike Davis.

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