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[The content of this article has been produced by our advertising partner.] After a few years of hybrid experimentation, Asia Pacific companies are rediscovering the value of the office. Across the region, business confidence is strengthening. According to CBRE’s 2025 Asia Pacific Office Occupier Survey, 42% of surveyed firms now plan to expand their footprint over the next three years, while only about 20% expect to reduce space. This finding signals changing sentiment, with the office increasingly viewed as a strategic hub for collaboration, culture and growth. Several underlying drivers are revealed by the survey. Global Capability Centre (GCC)‑heavy markets such as India play an important role in occupiers’ portfolio strategies, while in Japan, companies are expanding again after consolidating space during the pandemic, supported by steady economic growth. In contrast, mainland China remains more cautious, with limited expansionary sentiment as occupiers balance economic uncertainty with the need for quality premises. The “flight to quality” factor Stricter attendance policies, rising utilisation rates and a strong “flight to quality” trend are changing up how companies and landlords think about space, according to the survey. The report shows a consistent “flight to quality” trend, with companies increasingly willing to pay more to relocate to better quality buildings. Sixty-five per cent of respondents prefer core CBD locations, with a further 32% considering CBD fringe areas. What location type(s) do you plan to move to? “Even as companies expand, they are highly selective, preferring premium locations with the right infrastructure and amenities,” notes Tom Gaffney, Head of Leasing, Asia Pacific at CBRE. “Many are still choosing premium locations with strong infrastructure and good amenities. Recent moves by Jane Street and Point72 in Hong Kong’s Central district show that financial firms continue to view quality and location as top priorities.” This trend is not limited to Hong Kong. In Tokyo, low vacancy in prime districts has pushed pre-commitment activity to record highs. In India, GCCs are driving strong demand for next-generation business parks. Despite the preference among most occupiers for CBD areas, tight vacancy rates in prime locations are creating a bifurcated leasing market. Availability is primarily concentrated in non-CBD areas, making it more challenging for companies to secure high-quality CBD office space. Vacancy rate gaps in major cities’ core and non-core submarketsAttendance enforcement and utilisation on the rise “Companies are increasingly enforcing return-to-office protocols while prioritising employee experience and workplace optimisation to drive performance and efficiency,” says Ada Choi, Head of Research, Asia Pacific at CBRE. The survey reveals that 82% of respondents report consequences for failing to comply with return-to-office protocols – up 16 percentage points from last year. Half of respondents now link office attendance to performance reviews or bonus outcomes, up from 29% in 2024. As such, office utilisation across major markets continues to climb. Many organisations that had experimented with large hybrid footprints are re-centralising teams, finding that face-to-face collaboration supports stronger productivity and talent retention. Are there consequences for employees who do not follow office attendance protocol? Implications for landlords and investors The resurgence of office expansion presents a mixed picture for landlords. Premium CBD assets are clearly highly sought after, while older or non-core stock faces rising vacancy risk unless substantially upgraded. Another recent report by CBRE on Asia Pacific Office Innovation reinforces that point. It identifies three innovation pillars – human, physical and digital – that define the next generation of office competitiveness: Human: spaces that promote well-being, connection and community; Physical: design flexibility, communal areas and amenity-rich environments; Digital: smart-building systems, data-driven efficiency and hybrid-work enablement. For landlords, embedding these features helps maintain relevance and value in a market where occupiers judge buildings by experience rather than square footage. Recommendations for occupiers While landlords are modernising their buildings, occupiers also need to rethink how their workplaces support people and performance. Against this background, Gaffney advises tenants to focus on three key areas: Leverage return-to-office protocols to improve office attendance, supported by clear policies on this topic, while also improving the office experience to entice employees back voluntarily. Establish well-located and high-quality offices to drive productivity, and seek to provide attractive amenities to employees and maintain office vibrancy to create an enriching working environment. Plan expansion or relocation well in advance to secure desired locations, especially for CBD areas where vacancy is tight. “With securing quality CBD space becoming increasingly competitive across Asia Pacific, proactive planning and innovative leasing strategies that balance cost pressures with the demands of a dynamic workforce and market will help set occupiers up for success,” says Gaffney. “Overall, our survey underscores a clear flight-to-quality and flight-to-core trend across the region, and looking ahead, we expect these trends to remain the defining trends for the regional office market over the next few years,” says Choi. “Occupiers continue to balance expansion, workplace efficiency, and employee engagement against economic uncertainty, shaping a complex and evolving real estate landscape that demands flexible, forward-looking approaches.” Read CBRE’s 2025 Asia Pacific Office Occupier Survey for more insights from nearly 300 corporate real estate executives in the region on workplace trends, priorities and strategies, and growth plans.
