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A recent CBRE survey revealed that companies across Asia Pacific have been enforcing stricter return-to-office protocols, with a notable rise in consequences for non-compliance. The survey also highlighted a growing link between office attendance and performance reviews, alongside a renewed focus on workplace optimisation and employee experience. Stricter protocols are driving fresh demand for quality office spaces, particularly in central business districts, where competition for prime locations is intensifying amid limited vacancy rates and economic uncertainty.
Asia Pacific companies have intensified the enforcement of return-to-office policies, while also prioritising workplace optimisation and employee experience to sustain productivity, according to CBRE's Asia Pacific Office Occupier Survey released this past week. Advertisement
The study found that 82% of organisations reported implementing consequences for staff failing to comply with attendance rules, reflecting a significant increase compared with last year. Additionally, half of the respondents indicated that office attendance is now tied to performance evaluations, up from less than one-third in the previous year.
As firms attempt to encourage employees back to the workplace, emphasis has shifted towards enhancing employee engagement and work efficiency. Many businesses are relocating to premium locations and upgrading facilities in order to strengthen productivity and maintain growth against a backdrop of global economic challenges.
Stricter protocols are also influencing future space requirements. Around 42% of occupiers expressed plans to expand their office footprint over the next three years to meet rising workforce needs, while only 20% signalled intentions to reduce space, a decline from last year. Nearly one-third of firms expect no change to their footprint but are adjusting workplace strategies to support attendance and expansion.
Smaller businesses are driving demand growth, while larger firms, particularly in finance and technology, are focusing on rebalancing portfolios and improving space usage under reinforced return-to-office measures.
The preference for central business districts remains dominant, with nearly two-thirds of respondents choosing CBD core areas and close to one-third opting for CBD fringes. Less than one-third favoured non-CBD locations, citing superior connectivity and infrastructure in central districts as factors supporting attendance.
Tom Gaffney, Head of Leasing, Asia Pacific at CBRE, observed that securing quality CBD spaces has become increasingly competitive, requiring careful planning and innovative leasing strategies to balance rising costs with workforce needs.
Despite the preference for CBD locations, low vacancy levels in prime areas are resulting in a split market. Availability remains concentrated in non-CBD locations, making high-quality central space harder to secure. Ada Choi, CBRE's Head of Research for Asia Pacific, noted that occupiers are pursuing a 'flight-to-quality and flight-to-core' approach, weighing expansion, efficiency, and engagement against economic volatility, which is shaping a more complex and evolving office market.
While smaller firms are fuelling expansion, larger corporates are adopting rebalancing strategies. Strong preference for CBD areas is increasing competition for prime spaces, yet limited availability is pushing occupiers to rethink their real estate strategies. This evolving landscape highlights the need for flexible planning to align workplace demands with broader economic conditions.
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