Flex Spaces to Represent 39% of Asia Pacific Corporate Real Estate Portfolios By 2027

New data reveals the increasing influence of hybrid work environments on how business leaders approach traditional workplaces. Nearly half (49%) of the corporate real estate executives surveyed in CBRE’s 2024 Asia Pacific Office Occupier Survey indicated they plan to expand their use of flexible office spaces over the next three years. 

The survey reveals flexible space currently makes up slightly over 10% of most corporate real estate portfolios. However, this percentage is projected to increase to 39% within three years. Flex spaces are typically adopted outside core leases to accommodate short-term demands and business needs, and this segment of office real estate is reported to be quickly gaining favor in the workforce. 

“Among those intending to expand their use of flex space, most anticipate it will comprise 10% to 50% of their portfolios by 2027,” according to the survey’s findings. “Smaller firms may allocate up to 100% of their offices to flex space for reasons such as availability of prime location; access to shared amenities; and ease of managing fluctuations in headcount.” 

Hybrid work patterns have notably influenced office attendance and utilization rates. More than 60% of surveyed occupiers reported that their office attendance has reached a steady state — which is up from 50% in 2023.  

Approximately 32% of companies expect an increase in office usage in the coming years, reflecting the rising adoption of more stringent hybrid work environments. 

Firms are also leaning towards unassigned seating arrangements, such as hot desking and activity-based working, to increase office space efficiency. CBRE reports that by 2026, nearly half of the occupiers surveyed plan to adopt a staff-to-desk sharing ratio ranging between 1.01 to 2.0. This is a significant shift from 2023, where 56% of companies maintained a 1:1 ratio or less. 

The data shows how flexible office spaces and efficient use of spaces are becoming highly valued by executives as businesses continue to adapt to hybrid work. Cost considerations are also driving renewal and relocation decisions in the region. Over half (65%) of respondents cited lower rents offered as a key factor for lease renewals, while high fit-out costs pose challenges to office relocations.