How the rise of TMT occupiers and flexible workspace operators affects the relationship between tenants and property owners
Asian CBD areas have historically been dominated by finance. However, technology, media and telecoms (TMT) groups and flexible workspace operators were key drivers of demand over 2017– 2018. TMT groups now occupy about 18% of prime office space in Asian CBDs, and flexible workspace 4-5%.
Growth in TMT and flexible workspace may slow, but is unlikely to reverse. Conversely, finance is generally flat or in slight decline.
In addition to changing occupation profiles, patterns of workplace organisation and design are evolving. Occupiers in general increasingly value flexibility, efficiency of space use and ambient experience.