Login
iscover
In the modern, digitalised world, an overwhelming majority of Asia Pacific (APAC) commercial real estate occupiers are hunting technology-friendly spaces, according to JLL.
The consulting firm’s 2023 Global Real Estate Technology Survey revealed 93 per cent of APAC commercial space occupiers stated they would pay a premium for technology-enabled spaces.
This comes as 85 per cent of occupiers indicated intentions to increase their investment in technology, with many viewing it as crucial to drive competitive advantages in a competitive market.
Susheel Koul, JLL’s chief executive officer, work dynamics Asia Pacific, explained: “Organisations across the globe acknowledge that technology plays a critical role in navigating disruptive challenges, driving transformation, enabling agility – and Asia Pacific is no exception.”
JLL’s research found sustainability tools, including energy/emissions management tech and smart energy infrastructure, are set to account for the largest share of increases in technology budgets.
“While the immediate focus remains on technology to support hybrid work and attract and retain talent, occupiers will prioritise solutions to increase revenue, improve sustainability metrics, and improve business decision-making in the next three years,” Mr Koul said.
With artificial intelligence (AI) and generative AI increasing their prevalence within society, many of the research’s respondents expect this wave of technology to have the greatest impact on real estate in the next three years. However, there are concessions that deep understanding of these technologies remain slim.
The survey also found respondents are looking at investing in technology that will add value to their business goals through avenues such as collaboration and optimising and enhancing decision-making.
Further, the report indicated a divide between technological ambitions and adoption throughout the APAC region, with many companies falling behind on their objectives.
“Most organisations do not have an actionable tech strategy in place, and less than half have seen success in their tech programs,” Vivek Satpathi, head of client growth, Asia Pacific at JLL, noted.
Even with a large chunk of organisations “recognising the benefits that technology can offer, many are still struggling to make tech a true value driver,” stated Mr Satpathi. But this is not all doom and gloom. He shared how this “will create opportunity”.
“To harness the opportunity, we recommend that organisations start by shaping an actionable technology strategy, which can translate into a strong operating model with the right resources, people and organisational structure in place,” he said.
In addition to targeting technology-enabling space, JLL’s recently published Sustainable Offices City Index painted a picture of increasingly climate-conscious office occupiers as society moves towards net zero targets.
Kamya Miglani, head of ESG research, Asia Pacific at JLL, explained: “Leasing office space in green-certified office buildings is becoming a non-negotiable for occupiers.”
However, the research noted supply is unable to match demand, with “only a handful of office buildings in Asia Pacific [matching] the criteria of a zero-carbon building today”.
