Market digest

JLL’s Future of work survey calls out the long-term transformation underway of real estate portfolios. Their survey of over 1,100 decision makers across 13 markets shows that companies are pursuing new strategic workforce opportunities and focusing investments to align with new objectives.  

The research identifies the next three years as a critical phase for CRE strategy, and a determining one for how successful companies will be able to adapt to evolving market dynamics.  

Key resulting messages from the research are:  

• Hybrid working and the rejuvenation of the office 
• Investing in quality space 
• Environmental and social aspirations to shape the portfolio 
• Doubling down on technology investments  
• Real estate needs are more complex and sophisticated  

When it comes to technology, survey respondents inform on technologies in place and for adoption. In fact, 78% of companies plan to adopt more than 10 anchor technologies across their operation. JLL states, “real estate without a robust technology and data investment strategy will not be competitive, resilient and forward-thinking.”  

You can read the article in full here. 

Office occupiers have signalled their intentions to keep increasing their flex-office portfolios. This is according to CBRE in an article written this month by their European research team. CBRE’s survey also shows that 41% of office occupiers plan to expand their office footprint over the next 3 years and that they believe investment in technology for the workplace drives productivity and business revenue. 

You can read the article in full here. 

JLL’s latest global real estate perspective report flags a number of headwinds that are driving greater uncertainty and low sentiment across sectors. For the office market, although leasing volumes increased 20% compared to last year, momentum overall has slowed.

The report includes an interactive graph comparing rental change across global cities and a short trend prediction for the office sector. Short-term, JLL predicts that uncertainty will decrease momentum in the market, while long-term, flexible and hybrid working considerations will impact real estate decision making. They also flag flexibility and quality as two pressure points for landlords as they seek to meet tenant demands.

Click here for the full report.

The latest flexible office benchmarking report from Workthere identifies trends across given areas of the market such as profitability, use of space, member profile, demands in flex, and the future of flex. Flexible office providers were the focus of this survey, and their responses demonstrate positive evolution of the sector. The increased demand for flexibility has evidently driven increased occupancy levels for both private and shared office space, from 68% to 81% and 55% to 69%, respectively. This growth in occupancy has therefore resulted in an increase in flex space provider profitability – from 82% to 89% – with an increase as well in profit margin by 11 points.

For more insightful statistics and trends on the flex office sector read the full report here.

CBRE’s 2022 US office occupier sentiment survey highlights return to office strategies and how companies are proving the value of the office to their employees. The comprehensive report outlines key trends taking shape such as hybrid working, sustained flexibility, growing demand of flexible office space and ESG.

Better building features, such as connected technologies and building applications, outdoor amenities, indoor air quality and flexible office space, are in-demand. Landlords are shifting their focus to operational real estate strategies that fall in line with tenant requirements for flexibility, experience and tenant satisfaction. Many are partnering with occupiers to enhance the office experience as a key driver for attracting and retaining talent.

Read all of the trends here.

The Digital Cities Index (DCI) 2022 ranks 30 global cities against four key thematic pillars: digital connectivity, services, culture and sustainability. The whitepaper, developed by Economist Impact and supported by NEC, considers the extent and impact of digitisation across the leading digital cities. Asian cities like Singapore, Beijing, Sydney, Hong Kong and Seoul are amongst the top ten most connected cities in the DCI.

Read more here for highlights of the report and the best practices of leading cities and their deployment of digital technology.