‘Hub-and-spoke’ office model gains traction in APAC
Markets in the region except Australia are practising remote working.
Whilst most office centres in the Asia Pacific except Australia are not adopting remote working, the ‘hub-and-spoke’ office model is gaining popularity in the region.
In a statement, Savills Investment Management said under this office model, firms may opt to retain their office location within the central business district, but they augment it with a satellite office to provide workers with greater flexibility on locations.
“We believe that good quality office assets in selective non-primary locations could present good value as rent growth could outpace the overall market rent growth – although they need to be well equipped and have strong ESG credentials,” it said.
Savills said the region is at a different stage of the economic cycle with the inflation relatively muted in APAC, compared to the multi-decade highs.
This makes the region an “attractive diversification play” for both Western and local investors. It is also likely to fall less than Western markets this year and recover at a faster pace due to its strong fundamentals.