KUALA LUMPUR: The rising trend of “flight-to-quality” and “flight-to-green” augurs well for newer premium office buildings in Asia-Pacific as companies seek quality workspaces to attract top talent.
“With 80% of buildings in Asia-Pacific aged 40 years or younger, the nascent office market offers an opportunity to build cutting-edge office buildings with the latest amenities without the risk of becoming obsolete,” said Knight Frank in its New Horizon Outlook 2024 Part 1: Asia-Pacific Tomorrow report.
The report highlighted three reasons why the Asia-Pacific office sector is the backbone of the office-first hybrid strategy; emphasis on newer and environmental, social and governance (ESG)-certified buildings, access to a valuable talent and emergence of a two-speed market with a bifurcation in the Asia-Pacific office sector.
It pointed out that the emphasis on newer and ESG-certified buildings is crucial as firms strive to create environments that seamlessly facilitate work, reflection, and collaboration.
“With a majority of Central Business District office buildings being relatively newer in this region, they inherently integrate the latest technologies, enhancing user experiences and minimising the risk of obsolescence,” said Knight Frank Malaysia group managing director Keith Ooi.
“This trend not only resonates with occupiers’ preferences but also facilitates cost-effective and less complex retrofitting efforts, reinforcing the region’s attractiveness for innovative, ESG-focused office developments,” he added.
Meanwhile, head of research, Asia-Pacific Christine Li said, “As the ‘flight to quality’ and ‘flight to green’ trends gain momentum, Asia-Pacific emerges as the optimal choice for workplace transformation due to its up-to-date building technologies and availability of prime, ESG-compliant spaces tailored to company requirements.”
Source: The Star