Recent research, shared with Officing Today by Instant Offices, has identified a clear pattern of growth in the Asia-Pacific regions.
While the trend is most evident in larger corporations, small to mid-sized companies are also following suit, indicating a clear interest in this region as they take steps to penetrate local lucrative markets. The contracts being signed are generally for longer periods of time as well, indicating a desire by companies to dig in and achieve a more permanent presence in the area.
The primary reason for the migration? Economic growth. According to Instant’s research, the region “exhibited the highest economic growth within the global prime occupancy costs, rising 2.9% in the past year.”
The most popular destinations include Hong Kong (pictured), Tokyo, Beijing, New Delhi and Singapore. In addition to the business-friendly regulatory environment, they are also a draw for Western talent, who are willing to relocate to these regions, subsequently driving up prices for homes and other properties in the area.
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To a large extent the movement in this area reflects the ‘act locally, think globally’ approach, which had altered the traditional corporate model to a distributed one, locating talent more strategically in identified high growth regions across the world.
According to Instant’s Senior Operator Relationship Manager, Sophie Turnbull, “The Asia Pacific serviced office market has grown rapidly over the last 18 months and Instant has seen an increase in clients looking for locations in good central business districts.
“Not only are large corporations opening up in the region, but medium-sized global companies are taking the opportunity to obtain great work space in a rapidly growing area.”
We thank Instant for sharing these findings with OT. We’d like to hear your comments.
Image: Hong Kong, by Ziko van Dijk