Thought Leadership

• New data centre supply in the four tier I Asia Pacific markets (Greater Tokyo, Sydney, Singapore and Hong Kong SAR) totalled 305MW in H2 2021. This marked the highest total for a six-month period since CBRE’s records began. 
• The record volume of new supply pushed up net absorption in the four Asia Pacific tier I markets to over 280MW in H2 2021. Hyperscale cloud providers remained the main demand driver, with many groups exhibiting requirements for bigger facility sizes and multiple-site deployments.
• Asia Pacific direct data centre investment turnover totalled US$4.8 billion in 2021, an increase of over 100% from the previous year. Data centre operators completed several acquisitions; capital-raising remained strong; and more investors are setting up operational platforms.  
• Large populations of internet users, solid economic growth, government support for industry 4.0 and 5G development continue to drive interest in data centre development in emerging Southeast Asia, with Indonesia and Malaysia the largest markets at present.

Within the office sector, occupiers can focus on higher-quality assets that possess green and sustainable features and establish a roadmap to adopt an ESG agenda from green buildings to energy audits, to green leases. Meanwhile, landlords can invest in smart and green buildings, including retrofitting older stock and prepare for new ESG requirements by embedding sustainability into every stage of the building life cycle. In the industrial and logistics sector, a paramount trend to watch is the sharper focus on ESG criteria, evident from 67% of occupiers believing that green or sustainability features will be more prominent in logistics facilities in the future in CBRE’s 2021 APAC Logistics Occupier Survey.

This report was originally published in https://apacresearch.cbre.com/en/research-and-reports/Asia-Pacific-Real-Estate-Market-Outlook-2022

535 Asia Pacific-based investors participated in the survey, which asked respondents a range of questions regarding their buying appetite and preferred real estate strategies, sectors and markets for 2022. Investment sentiment towards Asia Pacific commercial real estate remains positive. A key finding is that investors continue to regard the incorporation of ESG criteria into investment strategies as critical to fulfilling regulatory requirements, preserving future asset value, protecting the environment and enhancing brand image. As a result, ESG criteria continue to gain traction among investors. Approaches include incorporating ESG into AEI and consulting external rating parties like GRESB when assessing potential acquisitions. More investors are also leveraging green financing for ESG upgrades as additional costs are required. These include developers, REITs and fund managers. 

This report was originally published in https://apacresearch.cbre.com/en/research-and-reports/Asia-Pacific-Investor-Intentions-Survey-2022

Ready or not, the metaverse is already a force to be reckoned with. This fast-evolving network of virtual spaces is not just defying physics – it’s set to redefine real estate as we know it.

The metaverse is a network of virtual spaces where people can socialise, play, work, and even own property. On this platform, billed as the next iteration of the internet, just about anything is possible – owning a Grand Slam tennis court in pixel form, becoming the virtual neighbour of millionaire celebrities, or acquiring a stake in a digital shopping mall selling high fashion.

But can virtual worlds generate tangible value for occupiers and investors? According to our experts, the answer is an emphatic yes.