• Competition for talent new challenge for office market


    ASIA Pacific office landlords are witnessing a more challenging office market as occupiers are using workspace designs to attract more talent into their firms, according to a real estate advisor

    In a report released on September 22, CBRE said that companies are now shifting to a workplace strategy that takes into account human factors to be able to attract more talent.

    “A great workplace is unlikely to be in the top three reasons why a talent will work for an organisation, but a poorly considered workplace is symbolic of an organisation that is not people-centric —and that’s a huge detractor,” CBRE said.

    CBRE cited a survey by Manpower Group in 2015, which said that finding the right talent is more challenging in Asia Pacific.

    “The difficulty is higher in Asia Pacific compared to globally (48 percent vs. 38 percent respectively),” the report said.

    Employers are more aware of the potential for workplace design to attract talent, as they are putting more emphasis on flexible working, environmental quality and the provision of employee amenities, according to CBRE.

    With occupiers focusing the workplace design of their offices, this presents a challenge to landlords, as tenants will be more specific with their requirements.

    “Occupiers will demand that landlords provide them with a work environment that helps them create a sense of community and fosters a sense of belonging, which in turn will aid them in attracting and retaining talent,” CBRE said.

    One way landlords can attract more occupiers is to equip their buildings with a full range of amenities for holding community events.

    The report noted that this poses a bigger challenge to landlords of older buildings, as they would have to compete with newer properties that may be more attractive to occupiers.

    “Apart from offering lower rents or providing longer free rent periods, landlords should consult tenants to ascertain their most desirable amenities or facilities,” CBRE said.

    The report also noted that landlords must maintain a regular and open communication with tenants to understand their basic needs.

    “CBRE Research believes the coming years will see the landlord-tenant relationship move beyond a straightforward contract based on a lease to more of a partnership type agreement with the common goal of providing a satisfying workplace experience for employees,” the report said.


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