Asia Pacific’s office markets are undergoing a strategic transformation in 2026, as revealed by a new report from Colliers. The analysis indicates a shift from expansion to precision, with organisations focusing on high-quality spaces to gain a competitive edge. Leasing activity in the region’s key office markets increased by 11% year-on-year, reaching 9.8 million square metres in 2025, driven by improved business confidence in major economies such as India, Mainland China, and Japan.
The supply of office space rose by 19%, yet the emphasis is now on quality rather than quantity. Mike Davis, Managing Director of Occupier Services at Colliers, highlighted that the market is no longer volume-driven. “Advantage will go to organisations who are clear about what they need from their offices, which is performance, resilience and long-term value,” he stated.
Investment in the office sector also saw a significant rise, with a 21% increase year-on-year, totalling $58.6b. South Korea and Japan accounted for over half of the regional office investment volumes, whilst India showed the strongest growth in investment activity. Theo Novak, Managing Director of Capital Markets & Investment Services at Colliers, noted the alignment between occupier demand and capital deployment, emphasising that real estate is now seen as a competitive advantage.
As vacancy rates tighten in prime locations, the focus is on strategic decision-making in securing office spaces. This shift underscores a broader regional re-engagement, with markets like the Philippines, New Zealand, and Hong Kong showing strong growth momentum. The next phase of the office cycle will be driven by execution and strategic alignment, rather than mere expansion.
