Office demand growth to be 'gradual and moderate': CBRE
Demand will be coming from multinationals and Chinese enterprises.
Whilst CBRE expects growth in office space demand from multinationals and Chinese enterprises following the relaxation of travel restrictions, the property expert said it will only grow at a rate of no less than 770,000 square feet per annum.
"This was the annual level registered in the three-year period between 2016 and 2018 when cross-border travel was unrestricted," CBRE explained.
Thus, CBRE said the overall growth of office space demand will only be "gradual and moderate."
Across industries, CBRE sees office demand growth in wealth management, healthcare and medical, tech and telecom, construction, co-working centres and retail in the next three years.
“The pandemic has transformed our life and more people value work-life balance and flexible work arrangements. We are seeing workplace strategies will continue to evolve while both landlords and occupiers will place a high emphasis on ESG and wellness," said Ada Fung, executive director and head of Advisory and Transaction Services – Office Services at CBRE Hong Kong.
"With the current high vacancy rate in the office market, landlords will have to consider this to broaden their tenant mix to improve occupancy. In this case, more innovative and flexible leasing packages will be offered until vacancy returns to lower levels," Fung added.