More than 400 corporate real estate executives from around the world participated in the CBRE survey. Of the survey respondents, 49% cited economic uncertainty as their greatest challenge—with Asia Pacific respondents being particularly sensitive to this issue compared to Europe, the Middle East, Africa and the Americas—while 43% noted cost escalation as their greatest challenge.
According to Chief Executive Officer, Global Workplace Solutions, CBRE Asia Pacific, Phil Rowland, the volatility of today’s global economy is beginning to weigh on business confidence, challenging executives to align long-term real estate strategies with short-term corporate agendas.
Effective workplace strategies are striking the right balance between helping to expand business capabilities, while limiting spikes in both capital investment and operational expense, he added.
Forty-eight percent of survey respondents projected a stable real estate footprint for this year. Global corporate executives favored emerging markets as destinations for growth, with Southeast Asia and India as top locations for expansion. 56% of respondents indicated interest in expanding their corporate portfolios in the next three years in Southeast Asian markets where economic opportunities are emerging.
Despite weakening business confidence, along with decelerating growth in China and its uncertain effects on regional and global markets, the Asia Pacific region still provides opportunities for multinational companies in the medium to long term, said Head of Research, CBRE Asia Pacific, Henry Chin.
Several emerging markets in Asia—notably India and Southeast Asia, including Vietnam and the Philippines—expect to report growth in the coming year due to the continuous inflow of foreign direct investment, strengthening domestic business cycle and a supportive policy environment, Chin added.
