Newsflash Asia – Breaking Stories, Smarter and Faster

[user-icon-header-short device='mobile']

Firms in APAC face space constraints amid selective expansion

Office occupiers across Asia Pacific are entering a new phase of workplace transformation as office attendance stabilises, AI adoption accelerates, and companies increasingly prioritise premium office space. According to CBRE’s 2026 Asia Pacific Office Occupier Survey, half of the companies expect to expand their office space over the next three years.

Nearly 88% of respondents reported that employees work in the office at least three days per week, marking the highest level since the COVID-19 pandemic. Tom Gaffney, Head of Leasing, Asia Pacific for CBRE, noted, “The workplace conversation in Asia Pacific has fundamentally shifted… companies are no longer focused only on bringing employees back to the office.”

AI adoption is accelerating within the region’s corporate real estate functions, with 46% of respondents identifying as AI adopters, up from 9% in 2024. However, the impact of AI on office demand remains unclear, with more than half of occupiers reporting no impact or uncertainty about its effects.

Business expansion remains a key driver of office demand, with 60% of respondents citing organic growth as the core driver. Many organisations are consolidating or exiting lower quality spaces whilst investing in premium facilities. Expansion sentiment is particularly strong in India and Japan, where demand is constrained by limited availability.

Ada Choi, Head of Research, Asia Pacific for CBRE, stated, “Although there is speculation that AI could reduce office demand, our findings suggest most organisations remain in the early stages of assessing its impact.” The survey indicates that future growth will focus on higher-quality workplaces, with lower-value spaces being rationalised.

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats

Join The Community

Join The Community

NEWSFLASH

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats.