What’s top of mind for corporate real estate in 2019?

Increasing alignment of corporate real estate’s (CRE) strategic goals with broader enterprise priorities is a key insight emerging from JLL’s top 10 CRE trends for 2019. 

They include a mix of both priorities that are shared across the business (including CRE), as well as real estate-specific strategic priorities and operational imperatives.

Enterprise wide priorities impact CRE as much as any other part of an organisation, or CRE has a role in delivering or enhancing:

Responsible enterprise: Like other functions, there is mounting pressure for the organisation to be more transparent and accountable. This incorporates data protection, responsible procurement, and high standards of ethics.Inclusive workplace: Companies that embrace diversity and inclusion perform better, and an inclusive culture can improve innovation. CRE can play a major role by facilitating an inclusive workplace that supports diversity in all its forms.Urban futures. Busin…
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How flexspace is transforming worn-out buildings and benefitting local businesses

Here’s how flexspace is transforming worn-out buildings and benefitting local businesses

Henley-on-Thames in Oxfordshire, UK, is home to a close-knit community and a thriving independent business scene. But before Regus opened a location there in August 2018, there were very few options for professionals seeking flexible ways to hire an office space.

“Our hot-desking concept is a real niche in the Henley market as there is nothing else like it available in the area,” says Hannah Massie, Community and Sales Manager for Regus Henley-On-Thames. “We’ve got many start-ups and sole traders who used work out of coffee shops that now having access to a great co-working community instead.”

Located on Newtown Business Estate, Regus Henley-On-Thames already had a potential building it could have moved into – but it was not up to scratch. “The site hadn’t had a lot of TLC,” explains Massie, “hence Regus basically stripping it down and starting again.”<…

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Before You Buy try to Rent

Buying a home is a big decision in life. For a super luxurious condominium worth more than THB 50 million per unit in a prime location, it is hard to know which building or unit will suit you the best without a real test of actually living in the building.

I suggest that, for some high-end purchasers, choosing to rent a condominium unit in a building they are interested in for at least a year, will allow them to get real experiences of living in it, before making a purchasing decision and paying a huge amount of money to actually own a unit in the building.

Once purchased, there is no going back unless you resell it. To avoid such headaches of buying a condominium unit that you may regret later, the purchasers may want to make sure which condominium building and unit will meet their minimum requirements.

Simply inspecting the property at the site or show unit is not enough to really tell what the real living experience will be.

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Thai Industrial Property market driven by rocketing Chinese FDI

Bangkok, 8 May 2019 – According to a survey in Q4 2018 by CBRE, a leading international property consultant, Serviced Industrial Land Plots (SILPs) sales by major developers in Thailand increased by 50% Y-o-Y at a total of 1,000 rai (160 hectares) sold.

Of the total 1,000 rai (160 hectares) sold, 146 rai (23.4 hectares) were in Amata’s Thai-Chinese Park which developed SILPs specifically for Chinese manufacturers.

FDI in manufacturing jumped 130% in 2018

Foreign Direct Investment (FDI), as reported by the Bank of Thailand (BOT), in the manufacturing sector in 2018 increased by 130% Y-o-Y.

Many developers have reported that there was demand from Chinese manufacturers who were looking to relocate to Thailand due to the US-China trade war that has resulted in “Made in China” products having higher tariffs.

Foreign Direct Investment into Manufacturing Sector Source: Bank of Thailand

Vietnam has been the biggest beneficiary of…

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Coworking Space No longer just targeting startups companies

Advances in technology, a more mobile workforce, and unpredictable economic growth are starting to reshape the business environment and transform occupiers’ approach to office space decisions. 

In the Bangkok office market, a traditional three-year lease with options to renew and the tenant fitting out the space remains the typical way of leasing office premises for most occupiers. Multinational firms, however, with offices in different countries, are increasingly looking for flexible lease terms as real estate costs continue to be one of their major concerns.

Companies are also looking at agile working where staff no longer have allocated desks and, in some cases, it is easier to get third parties to design, build, and operate this space rather than companies doing it themselves.

Some of the current pricing being offered by coworking space operators is very competitive and the cost combined with flexibility is making leasing from thi…

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Thailand Property News Of The Week

The top residential and commercial real estate news of the week – 24 June 2019

NCC counts on stopgap events hallBangkok PostNCC Management & Development, the venue management firm and operator of Queen Sirikit National Convention Center, expects a new convention hall at Samyan Mitrtown to offset income lost while rebuilding QSNCC.

Property Perfect sells over 50% of YU KiroroBangkok PostProperty Perfect showcases the sale of its first condominium project in Japan, “Yu Kiroro”, marking the milestone sales of 1.8 billion baht, or over 50% of available units.

Building for a rapidly changing society

The NationHomebuyers are changing their purchase behaviour, demanding that residential buildings be designed with the facilities to serve people of multiple generations, especially innovations…

Building to a slowdownBangkok PostThe Thai property market is expected to continue slowing in the remaining months o…

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Profound Transformations await Retailers and Developers in Bangkok

The retail industry is undergoing one of the most profound periods of technological transformation in history.

The evolving retail landscape and consumers’ changing behaviour has led to the emergence of new retail formats and adoption of new technologies. Traditional retailers are continuously being forced to evolve and invest in digital transformation. 

The growing future supply in Bangkok will put more pressure on older centres to renovate and upgrade in order to remain competitive

As of Q1 2019, the total retail supply in Bangkok was almost 7.8 million square metres according to CBRE Thailand, increasing by 3.70% Y-o-Y. The total new retail supply in the whole year 2019 will be one third higher than total new supply last year.

And by the end of 2021, we expect that the total retail supply will exceed 8 million square metres, with the majority of the increase being in large mixed-use developments in the downtown area. 

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Real Estate Transparency: Southeast Asia moving in the right direction

We recently launched the 10th edition of our Global Real Estate Transparency Index, a leading publication that has been charting the progression of transparency across the world for two decades.

The 2018 Index builds upon the strong track record of our previous surveys, evolving to meet ever-changing demands, and now covering 100 countries and 158 city markets.

We have observed a lot of change in the last 20 years and transparency has become ever more paramount.

We have experienced a global financial crisis that put a spotlight on debt and regulation, witnessed the emergence of new technologies that have the potential to disrupt our industry, and here in Asia Pacific, we have seen more than 700 million new people living in cities which necessitated the need for higher quality real estate and supporting services.

Emerging markets in South and Southeast Asia that led the way in transparency gains in the 2018 Index

Encouragingly…

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The meteoric rise of flexible space in Asia Pacific

The rise of flexible space in Asia Pacific has been meteoric. JLL research indicates major operators grew their footprint at an annualized rate of 35% over the 2014-2017 period and that pace of growth has carried over into 2018 (Figure 1).

Figure 1: Flexible space stock*Source: JLL Research

A number of factors have driven the growth of this industry, and the co-working segment in particular, including the flexible terms offered to members, the plug and play ease of setting up, the sense of community and ready access to social and professional networks.

Initially co-working appealed to startups who found it more affordable than opening a traditional office.

To date the most popular flexible space model has been rent arbitrage.

But increasingly large corporates have started including co-working in their real estate strategy. And to accommodate corporates, operators have increased the size of their centres – our latest resea…

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Asian real estate and US interest rates

Economic conditions in the US continue along a path of steady improvement, with the latest GDP growth rate of 4.1% (annualized), signifying the strongest rate of growth in four years.

Robust economic growth teamed with strong employment data and upward pressure on inflation suggest the likelihood of further rate hikes over the course of the year.

US interest rate futures indicate traders are pricing in a 94% probability of a rate hike in September to 2.00%-2.25%, with a further 68% probability of an additional hike in December to 2.25%-2.50%.

Emerging markets currencies are becoming more volatile

Continued upward movements of US interest rates are starting to impact Asian real estate markets in a number of ways. With monetary policy positions in the Asia Pacific region sitting across a wide spectrum, the impact has been quite market specific.

Firstly, some of the emerging markets (EMs) are experiencing more volatility a…

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