The latest Colliers’ report ‘Global Occupier Outlook 2023’, highlights key takeaways and insights on the evolving global workplace. The report reveals that APAC occupiers are grappling with the complexities of the hybrid work model, which remains inconsistent across markets and industries. The lack of clarity and macroeconomic uncertainty are posing challenges for businesses in projecting their space requirements.

According to Colliers’ experts, companies are facing the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next evolution of the workplace. Consequently, many businesses are deferring decisions on office take up and investment.

Sam Harvey-Jones, Chief Operating Officer, Asia Pacific Harvey-Jones said, “The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilized. While challenges persist, this period of change presents unprecedented opportunities to reimagine the role of space and explore new approaches that cater to evolving employee needs. The research finds APAC occupiers are shifting from an ‘inward’ business view of what’s important in an office or location, to an ‘external’ view of what locations gives their employees access to in terms of culture, lifestyle and wellness." 

Occupiers in Singapore have been quick to adopt flex spaces, attracted by the flexibility, agility, and cost-effectiveness. Flex spaces are steadily increasing their foothold in Singapore’s office market, consisting about 10% of total office stock in Q1 2023, from about 8% in 2019 before the pandemic, compared with 2-4% in other markets in the APAC region.

Bastiaan van Beijsterveldt, Managing Director, Singapore, said: “Flex space in Singapore is set to continue its growth, especially in times of uncertainty, with occupiers and firms looking to take advantage of its convenience, versatility and scalability; these spaces are able to offer plug and play solutions, as well as quick options for headcount growth. "

Across the APAC region, occupiers are keen on realigning their office portfolios to meet business needs while providing the flexibility employees’ desire. The right portfolio is key to keeping culture intact, attracting and retaining best talent, and controlling operational costs.