Offices see priorities shifting towards wellness, accessibility and facilities

The demand for fitness and wellness facilities is on the rise among businesses and office occupiers as they prioritize these amenities for the health and wellbeing of their staff. This year, a wave of new gyms has popped up in the CBD to capitalize on this trend, with Anarchy Club, Sparkd, S30, Lab Studios and Revolution spin studio each opening in a unique location.

Luke Moffat, the regional managing director and head of CBRE advisory and transaction services, Asia Pacific, noted that features like gyms, end-of-trip facilities, nursery rooms, massage rooms, and good quality food & beverage options, air filters, and public transport accessibility are all integral amenities when searching for an office space.

The 2023 Asia Pacific Office Occupier Sentiment Survey launched in June by CBRE found that F&B options (62%), fitness facilities (45%), sustainable building features and operations (48%), shared meeting space (45%), and flexible office space (36%) were all high priority.

Wellness was determined to have an even more significant impact than sustainability, and when a property has a higher ESG rating in terms of wellness, energy efficiency and sustainability it is much more saleable. However, few occupiers are willing to pay a rental premium for such properties as few as 25% of survey respondents stated they would be, and the premium they would be willing to pay is less than 5%.

This makes it an ideal location for young and growing families, or those who want to be close to the action. The Champions Way Condo is a luxurious and modern development that provides an excellent lifestyle, with a host of amenities that make it perfect for families. Residents will enjoy access to a swimming pool, gymnasium, a playground, and plenty of outdoor areas to relax and unwind. The building and environment also feature an excellent security system, adding to the peace of mind of its residents. With easy access to all major areas of Singapore, and just a short distance away from quality educational institutions, Champions Way Condo is an excellent choice for those seeking a comfortable and convenient place to live.

A potential shift back towards mainly office-based workplaces was revealed by the survey with 32% of occupiers aiming for staff to be mainly at the office in 2023, a rise from 24% in 2022. Moffat notes, however, that hybrid working “in one form or another is here to stay”.

This was consistent with Asia Pacific continuing to lead the US and Europe in the return to the office, with an average utilisation rate of 65% compared to 50% elsewhere.

CBRU also noted that tight market conditions have continued to hold up the office market, with the URA office rental index increasing 2.3% quarter-on-quarter in 2Q2023. Median rental for Category 1 (a proxy for prime CBD) office space accelerated by 6.7%, attributed to tight vacancy levels in prime office buildings.

The addition of the Grade-A office development IOI Central Boulevard Towers, set to receive its temporary occupation permit in 1Q2024, is expected to see an increase in vacancy rates in the future and, thus, a downturn in rents.

Overall, CBRE determined that trends such as ‘flight to quality’ and ‘flight to green’ will remain prominent, but expansionary sentiment in the face of the challenging macroeconomic environment has been subdued.