A Cushman & Wakefield Research Publication - 2017 Global Forecast

GLOBAL

AMERICAS

APAC

APPENDIX

EUROPE

OFFICE SECTOR Global banks are once again on a hiring spree in key Asian markets—reversing the trend of aggressive job cutbacks of recent years—in an attempt to capitalize on the region’s growth. In the last 12 months through May 2017, the banking, financial services and insurance (BFSI) sector was the biggest driver of leasing activity. The majority of leases over 100,000 square feet (SF) were sealed by prominent financial institutions which expanded their footprints by more than 30%. Tokyo’s governor, Yuriko Koike, also announced plans to make the Japanese capital a “global financial city,” using tax cuts and special incentives to lure 40 foreign financial technology (fin-tech) or asset management companies by fiscal 2020. Radical advances in e-commerce and mobile applications, breakthroughs in artificial intelligence (AI), robotics and automation (just to name a few) continue

APAC KEY FACTS

Job growth leaders

Global bank hiring spree

Shenzhen and Guangzhou are expected to have impressive job growth rates due to the rise of fin-tech and e-commerce.

In the last 12 months through May 2017, the BFSI sector was the biggest driver of leasing activity in APAC.

Rise in Beijing vacancy

Record development in 2017

70 msf is scheduled to deliver between 2017 and 2019. Overall vacancy could climb from 6.6% to 16.8% over the next three years.

In APAC there is nearly 150 msf of new office projects slated for completion across the 25 major cities we monitored.

Mild rent growth

What to watch

In India, the introduction of the long-awaited GST on July 1, along with other reforms, will continue to enhance the investment climate.

Expect tenant-favorable conditions in core locations through 2019, except Sydney, Hong Kong’s Greater Central, and Singapore, where vacancies are expected to tighten.

36 / Cushman & Wakefield