Half of MNCs plan office expansion: Knight Frank
This anticipated growth amounts to approximately 104 million sq ft of additional office space (Photo: Samuel Isaac Chua / EdgeProp Singapore)
According to a report by Knight Frank, half of corporate real estate leaders plan to expand their total office footprint over the next three to five years. This anticipated growth amounts to approximately 104 million sq ft of additional office space.
The findings come from the consultancy's (Y)OUR SPACE survey, drawing from responses from over 300 corporate real estate leaders representing some of the largest international corporations globally.
The report found that economic and geopolitical uncertainty is a key driver behind the expansion. In response, companies are building greater optionality into their property strategies, opting for shorter leases, more flexible formats and locations that support risk diversification and access to talent.
Read also: Hines, Kanakia, Mitsubishi Estate and Sumitomo Corp JV unveil landmark office project in Mumbai
'Flexibility and resilience are vital for decision-makers in the current climate,' says Tim Armstrong, partner and global head of occupier strategy and solutions at Knight Frank. 'Corporates are committing to new space but building in flexible lease terms and options on pre-lets to remain nimble.'
Workstyle evolution was also a key factor for corporate real estate leaders, according to the survey. About 30% of responses cited the shift to more flexible working arrangements as a key factor guiding their real estate strategy over the next three years.
Among those surveyed, only 10% expect their employees to be present in the office for five days a week. 46% expect to follow a balanced hybrid workstyle, while the next 22% plan to be 'office first', where employees are expected to be in the office for the majority of the week.
In contrast, 7% of respondents expect to be 'remote first' while the remaining 4% of respondents plan to offer a 'work from anywhere' arrangement.
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