October 11, 2018
Investors and landlords must re-evaluate their investment strategies in response to the agile revolution. This report by CBRE Research identifies and explains the key approaches and challenges for core, value-added, and opportunistic investors seeking to capitalise on the boom in flexible spaces.
- The rapid growth of flexible spaces, which expanded by 57% in 2017 in major Asia Pacific markets, is altering the structure of office leasing demand. In H1 2018 alone, 15% of office leasing transactions in the region involved flexible spaces.
- While less than half of coworking operators in Asia Pacific are profitable, larger and more established providers are performing well. Flexible space operators must ensure their business model is sustainable and can survive the next downward cycle.
- Selected transactions involving buildings with flexible spaces in major business districts show they do not command a significant premium over similar properties without flexible spaces. However, non prime buildings with flexible spaces can achieve a capital value premium of around 5-10% over similar properties without these spaces.
More Agile Reports

The hotelisation of office space: New approaches to future proofing commercial portfolios

China Version
From expansion to efficiency: Flex operators redefine their strategies in 2019

APAC Version
From Expansion To Efficiency: Flex Operators Redefine Their Strategies In 2019

Can Coworking Save You Money? Comparing the Cost of Flexible Space and Traditional Office Leases
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Research Contacts

Henry Chin, Ph.D.
Head of Research, APAC/EMEA
Asia Pacific/EMEA
Research

Ada Choi, CFA
Head of Occupier Research, APAC / Head of Research, Greater China

Cynthia Chan
Associate Director
Asia Pacific
Research

Leo Chung, CFA
Associate Director
Asia Pacific
Research
Business Line Contacts

Manish Kashyap
Regional Managing Director
Asia Pacific
Advisory & Transaction Services

Sidharth Dhawan
Head of Agile Real Estate
Asia Pacific
Advisory & Transaction Services

Tom Moffat
Executive Managing Director, Head of Capital Markets
Asia
Capital Markets

Yvonne Siew
Executive Director
Asia Pacific
Capital Advisors

Thomas Edwards
Executive Managing Director, Global Head of Valuation & Advisory Services
Valuation & Advisory Services

Danny Mohr
Head of Valuation and Advisory Services
Greater China

Rohini Saluja
Executive Director
Asia Pacific
Advisory & Transaction Services