MORE than half of organizations in the Asia-Pacific region are likely to make remote work arrangements available to their employees by 2025, prompting them to rethink their office spaces, a real estate consultant said.
They will also invest in new technology and prioritize sustainability, as hybrid work is here to stay even as the office remains crucial to business operations, Jones Lang LaSalle, Inc. (JLL) added.
“We see that organizations will accelerate strategic investments over the next three years to realize their long-term workforce and workplace priorities, and the remaining four months of 2022 will be a critical phase for CRE (corporate real estate) strategy,” JLL Philippines Country Head Joey M. Radovan said in a press release on Wednesday.
He was referring to the findings included in JLL’s “Future of Work” report, which surveyed more than 1,000 responses across 13 markets worldwide.
The report said that 56% of organizations in the region are likely to keep remote work available to all employees by 2025.
CRE executives said that successfully operating hybrid work will be their most important strategic priority over the next three years.
“This includes exploring flexible space options, with the average proportion of flexible spaces in Asia Pacific expected to grow between now and 2025,” JLL said.
“The shift to hybrid work has become a marker of change in the workplace, placing greater emphasis on how companies can support employee mental well-being and maintain productivity,” it added.
JLL found that 80% of Asia-Pacific organizations agree that quality space is a top priority to “facilitate the kind of workplaces, health and wellbeing amenities, and sustainability credentials employees and corporates increasingly need.”
“As the office continues to evolve post-pandemic into a destination for collaboration, occupiers will need to continue increasing their investments in creative spaces,” JLL Head of Work Dynamics Research James Taylor said.
“Real estate portfolio strategies to enhance social interaction among a geographically dispersed workforce will be more important than ever, and the focus is on organizations to create offices with less me-space and more we-space,” he added.
JLL said that companies should invest in quality spaces to ensure the “long-term success of hybrid work.”
“Office remains as an important element of work. We see wellness, sustainability, and technology gaining greater prominence in shaping the built-up environment,” JLL Philippines Head of Research and Strategic Consulting Janlo de los Reyes said.
Meanwhile, JLL said that the total headcount and real estate footprint are also expected to grow.
“With buildings accounting for over 60% of carbon emissions in cities, organizations face ever-increasing pressure to deliver clear outcomes in the race to net zero and create social value through real estate,” it said.
JLL said that sustainability strategies have a direct impact on real estate decisions. It said 71% of the organizations are likely to pay a premium for green building credentials in the future.
“As employees return to the office and the workforce recovers its momentum, flexible working spaces and environmental ambitions will increasingly become the cornerstones of a hybrid workplace,” the consultant said.
JLL said that “Philippines’ awareness when it comes to sustainability practices has gone up by leaps and bounds.”
It identified five critical areas that local organizations will need to consider for a sustainable, resilient, and inclusive future of work: rejuvenation of the office for hybrid work setup, investing in quality space, environmental and social aspirations, intelligent technology investments and real estate complex needs.
JLL is a professional services firm that specializes in real estate and investment management. It is a Fortune 500 company operating in over 80 countries with a global workforce of more than 100,000 as of March 31. — Justine Irish D. Tabile