Overview:
In a split-screen office world, some investors enjoy high occupancies and rising rents, while others face high vacancies and declining values.
“The office sector is currently undergoing a transition in the US and Europe, and to a lesser extent in Asia,” says Simon Shen, senior managing director and fund manager for Hines.
Despite a global office downturn, there are attractive opportunities in Asia for investors who know where to look and what to look for. In particular, with limited to little impact from work-from-home during and post-COVID, overall office demand has stayed strong in South Korea, Singapore and Japan.
“Office fundamentals have generally remained resilient in most key developed Asia markets,” notes Shen. “Our research indicates net office absorption in developed Asia has rebounded above long-term averages.”
This article originally appeared in the October 2024 issue of Institutional Real Estate Asia Pacific.
Office bound
Simon Shen
Fund Manager, Hines Asia Property Partners