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Cushman & Wakefield’s 2024 Asia Pacific Office Outlook provides supply, demand, vacancy and rent data forecasts for cities in Australia, China, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
REGIONAL OVERVIEW
Key Messages:
Against a volatile economic backdrop, the Asia Pacific office market remains steadfast and continues to grow. Approximately 50 million square feet (msf) of Grade A office stock was absorbed across the region’s top 25 cities during the first nine months of 2023, with a further 12 msf expected in the final quarter. Annual office demand in 2023, forecast at 62 msf, is an 11% improvement on last year’s 55 msf.
New supply in 2023 will total 109 msf, outstripping demand and causing vacancy to tick upwards to 17.6% from 16.1% in 2022. Rental growth has subsequently slowed and is likely to be down around 0.5% on a weighted average basis.
The outlook remains broadly skewed to the positive. Demand is forecast to increase to 83 msf in 2024 and to 87 msf in 2025, which would match pre-pandemic performance. However, waves of new supply are also expected, with nearly 235 msf of completions forecast over the next two years to place further upward pressure on vacancy, which is now expected to peak at 18.4% in 2024 and then hold steady through 2025. This will keep downward pressure on rents which are likely to remain flat in 2024, at the weighted regional average level, before slowly accelerating from 2025. Accordingly, the window of opportunity remains open for occupiers over the near term.
Read the Report Read MorePicture this - despite around 43% of the installed power capacity of India being renewable, coal-based thermal power still contributes to almost 75% of its power generation. However, the country is making rapid strides towards achieving its ambitious goal of meeting 50% of its energy requirements from renewable energy by 2030.
The policy push has been strong, taking cues from which prominent real estate developers have begun to take meaningful steps towards attaining their ESG goals. Renewable energy, more often than not, is the first step towards achieving ESG compliance.
Through CBRE India’s first report on renewable energy, we have tried to answer the below questions and more:
This report was originally published in https://www.cbre.com/insights/reports/sustainable-energy-powering-india-s-offices
Download the Report Read MoreIt has become clear over the last decade that environmental, social and governance risks are financial risks. What does that look like for the year ahead? The 2024 edition of MSCI’s Sustainability and Climate Trends to Watch (formerly ESG and Climate Trends to Watch) brings together the key questions that our global research team are asking, and offers thoughtful analyses and useful insights to help assess and navigate the investment landscape that lies ahead.
This report was originally published in https://www.msci.com/research-and-insights/2024-sustainability-climate-trends-to-watch
Download the Report Read MoreThe year 2023 was an especially tough one for real estate. Declines in asset valuations, which had begun in the second half of 2022 in many markets, proliferated across a broader range of markets through the rest of 2023. Transaction volume also continued to fall through the year, with dealmaking often paralyzed by the standoff between potential buyers and sellers on pricing.
Investors will be hoping for a better 2024, where we find a floor in pricing that will return the market to more-normal levels of activity. When and how that happens remain to be seen. It may be through increased distress forcing sellers onto the market. Or we might eventually see interest rates start to fall, returning confidence to potential buyers. Whatever the details of exactly when and how we reach that point, the sudden market movements we’ve seen over the last 12 to 18 months have shifted the playing field. Investors are reassessing their real-estate allocations and strategies to mitigate significant risks but also exploit opportunities posed by this market dislocation.
Read the Full Article Read MoreClimate risk has rapidly emerged as a critical consideration for real estate investors, owners and occupiers.
Managing climate risk starts with pinpointing climate-related hazards, reporting these risks, and finally embedding climate risk management into your organizational processes.
This guide is a companion to help you better identify and mitigate physical climate risks. It may seem like a big task, but we help outline simple steps.
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