The selection of a ‘green’ option for office buildings is at best an afterthought, if it’s considered at all, according to a new survey of corporates in Asia Pacific.
Knight Frank’s Asia Pacific Office Occupier Survey discovered that many corporates are increasingly bullish that economic fundamentals will continue to improve at a moderate rate, and result in increased demand for real estate in Asia Pacific.
According to the survey, apart from rent, firms prefer to be located closer to their employees than their clients, and ranked building security, proximity to mass transit and the ability of a property to attract or retain staff as their key selection criteria.
The survey also revealed that technology adopted and used by corporates will continue to improve and is having an impact on their workforce. Although the workforce is adapting to these changes, some corporations are slower to embrace them, however the workforce is now influencing leasing decisions to a point that decision makers are re-evaluating their existing space and how they use it.
“Perhaps this employee centric approach to building selection is in response to firms placing more importance on their working environment, as the working week gets longer and competition for labour intensifies amidst low unemployment rates in the region,” the report said.
Knight Frank found that despite most firms planning to expand, almost half of the respondents allow insufficient time to give due consideration to their real estate options to prepare for their next lease expiry. Many leave it so late that they are left with little negotiating power.
Almost 60 percent of companies are expecting to increase headcount over the next year, with most addressing this through increased space.
“Perhaps one of the more interesting aspects of the survey responses is that less than one in five companies have considered or implemented flexible working. However, conventional wisdom suggests that more and more employees are challenged with “work-life balance” – or perhaps more accurately “work-life integration.”
The survey was conducted in 17 cities throughout Asia Pacific, with respondents representing more than 20 industries.
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| Source: Knight Frank. |
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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