Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Asia Pacific leads global demand for office space even as adoption of hybrid working gradually overcomes cultural obstacles

Jessica Freeman • 28/06/2022

Cushman & Wakefield’s new report shows demand for office space more than offsets the impact of hybrid working as it is adopted at varying rates across the region.

office-revisited

Hybrid working may be here to stay, but the rate at which countries in Asia Pacific are adopting flexible working practices varies greatly, according to a new workplace report.

Cushman & Wakefield’s report, Asia Pacific Office of the Future Revisited, said that while employees generally wanted greater workplace flexibility post-pandemic, cultural expectations around presenteeism, infrastructure deficiencies like unreliable internet, and a lack of space to work in residential premises are among the reasons the transition to hybrid work is progressing more gradually in some markets.

Across Asia Pacific, Australia reported the greatest desire for flexible working – even if only one day per week – at 87 percent of office-based employees. Mainland China (54 percent) and India (42 percent) had the least desire for some form of flexible working. In contrast, almost 90 percent of office-based employees in the United States desired at least one day per week out of the office.

“The desire to work flexibly and the speed of adopting flexible work practices varies considerably between markets. Variation can also be observed generationally, as well as by seniority, by department and between companies,” said Head of Insight & Analysis, Asia Pacific, Dr. Dominic Brown.

Trust between managers and employees is also crucial; Cushman & Wakefield research shows Asia Pacific has the lowest level of managerial trust, which further cements presenteeism, said Asia Pacific Total Workplace Lead Carol Wong. “Markets less familiar with flexible working are likely to need greater assistance with change management. This needs to start with building trust between managers and team members alongside a shift to identifying new measures of individual and team success,” said Ms. Wong.

Creation of office-based jobs strongest in the world

Generating more office-based jobs than other regions, Asia Pacific is expected to account for 23 million jobs – more than 75 percent – of the office-based jobs forecast to be generated globally between 2020 and 2030.

While Mainland China and India account for the greatest share – 50 percent and 26 percent respectively – the long-term forecast for the region overall remains favourable and intact, despite near-term challenges as countries emerge from the pandemic-related difficulties of the past two years, said Dr. Brown.

“The office demand growth drivers in many Asia Pacific markets are so strong that they will more than offset the impacts of flexible working,” he said.

The impact of Generation Z

The uptake of hybrid working in Asia Pacific is likely to accelerate as Generation Z – those born between 1997 and 2012 – accounts for a larger percentage of the working-age population.

Generation Z currently accounts for only 13 percent of the working-age population, or around 330 million people. By 2026 this figure will be almost 25 percent (655 million) and, by 2030, Generation Z will number nearly 1 billion people and account for more than one-third of all 20- to 64-year-olds.

Almost two-thirds of Generation Z report wanting some form of flexible working.

“The purpose of the office is evolving as the war for talent and hybrid work shape the future of workplace,” Ms. Wong said. “The clock has started ticking on workplace transformation within the region. Corporate employers are well advised to begin testing and piloting now to meet the needs of their current and future workforce. Those corporate occupiers who start piloting new working models earlier stand to reap the benefits through greater talent attraction, retention and engagement.”

Dr. Brown agrees. “Generation Z is the first generation of digital natives. They expect a seamless connection between the physical and the digital, which is also what allows hybrid working to flourish,” said Dr. Brown. “This is the generation that employers need to attract.”

According to Tim Molchanoff, Head of Office Leasing - Australia & New Zealand,  before the pandemic, most workplaces provided an allocated desk for all their staff and hot desking or Activity-Based Working (ABW) was an emerging trend. 

“Now that “working from home” is here to stay, our research indicates that a majority of tenants are considering (or already have) ABW as a permanent solution to manage lower occupancy rates” he said.

The number of desks provided is generally based on the average number of employees in the office each day. For example, with allocated desks, a daily occupancy rate of 100% was normally assumed. For 100 staff, 100 desks would be provided.

However, at 80% occupancy, only 80 desks are required. The proportion of staff-to-desks is referred to as the occupancy rate (OR). This is a key metric for the management of an “agile” or Activity Based Workplace (ABW).

Another factor with an impact on occupancy rates and space demand is a redistribution of space from individual workspace to shared amenities and collaborative space. This change is expected to offset some of the long-term reduction in space caused by working from home.

The key drivers of this shift in space distribution are workplace experience and staff engagement. This trend has been emerging for several years as a feature of ABW offices and has been accelerated by the pandemic.

Mr Molchanoff believes that reduced time in the office has a negative impact on staff engagement that can be mitigated by a more interactive and inclusive workplace experience. 

“A better-quality workplace and more flexibility about where and when to work gives employers a competitive advantage to attract and retain staff” he said.

Click here to download Asia Pacific Office of the Future Revisited.

How can we help?

Get in touch with one of our professionals.

Recent Media Releases

expand-agency-team-in-Adelaid-Cardimage-istockphoto
Cushman & Wakefield expand agency team in Adelaide

Just four months after launching its new commercial real estate team in Adelaide, global real estate firm Cushman & Wakefield continues to grow its commercial agency offering in South Australia

Jessica Freeman • 17/06/2022

17-19 Old Sturt Hwy Nuriootpa
Barossa Valley site in safe hands with Bridgestone

The site boasts a street frontage of 24 metres approx. along Old Sturt Highway and 90.42 metres approx. along Sturt Highway.

Jessica Freeman • 15/06/2022

CNW-Appoint-New-Director-Of-Tag-CARDIMG-istockphoto
Cushman & Wakefield appoint new Director of TAG

Cushman & Wakefield is pleased to announce the appointment of Marcus Tanti as Director, for its Tenant Advisory Group, based in Melbourne.

Jessica Freeman • 15/06/2022

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS