Thought Leadership

Key Trends

• Retail sales growth slows
• Inflation and recessionary fears weigh on consumption
• Leasing activity shows slight recovery
• Luxury brands turn more active
• Zero-covid impacts mainland China demand
• Retailers set to remain cautious

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-retail-trends-q3-2022

Key Trends

• Slower economic growth and inflationary pressure weigh on leasing activity

• Mainland China see mild recovery but other markets flat or weaker

• Finance, tech and coworking remain major demand drivers

• Rising construction and fit-out costs cause delays to new supply

• Flight to quality relocation still most popular strategy

• Occupiers set to remain cost cautious as economic worries mount

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-office-trends-q3-2022

• The Asia Pacific flexible office space market continued to display cautious growth in 2022, with the total volume of flexible office space in the region reaching 76 million sq. ft. as of September, an increase of 6% y-o-y on 2021 and 15% on pre-pandemic levels.

• As of September, flexible office space accounted for about 4% of total office stock and 3% of total Grade A office stock in Asia Pacific. In the Grade A segment, India and Singapore reported the highest penetration of flexible office space, while most North Asian markets are just below 2%.

• Tech firms and business services companies remain the top corporate users of flexible office space. Interest is also growing among financial, life science and consumer product firms.

• Trends that will continue to shape the flexible office landscape in 2023 include:

1. Flexible space operators offering on-demand memberships to cater to more dispersed workforces resulting from the widespread adoption of hybrid work
2. Growing occupier demand for customised enterprise and turnkey solutions to mitigate rising fit out costs and CapEx constraints
3. The use of asset-light strategies as flexible space operators form partnership with landlords using management contracts

This report was originally published in https://www.cbre.com/insights/briefs/h2-2022-asia-pacific-flexible-office-market-deliberate-growth-continues

Almost three years after the onset of the global pandemic, the retail industry has been through one the biggest stress tests imaginable, but best-in-class real estate has remained robust – and even emerged stronger in some markets.

Cushman & Wakefield's flagship Main Streets Across the World report tracks the top retail districts across 92 cities and ranks the most expensive by prime rental value. An annual report until 2019, this year’s report is the first since then, allowing insight into comparative performance pre- and post-pandemic.