Future of Work:
Making of a new
age CRE
Asia Pacific Insights
September 2024
©2024 Jones Lang LaSalle IP, Inc. All rights reserved.
The future of work will evolve CRE as …
Experience enhancers Efficiency builders Technology embracers Sustainability partners
Value drivers
2
Executive summary
Experience enhancers Efficiency builders Technology embracers Sustainability partners
Office is considered central to Expansion and efficiency Corporates believe that Corporates to pivot to ESG
work by corporates in Asia are pillars of future growth technology and AI will reshape performance to deliver
for corporates the future workplace sustainable portfolios
85% 61% 6 in 10 62%
of organizations have a policy of at believe they will have to achieve CRE leaders are currently piloting foresee spend on sustainability
least 3 days of office attendance better utilization of their portfolio or exploring AI use cases performance to increase
• Supporting the co-existence • Delivering an agile CRE • Harnessing AI and technology • Create portfolio decarbonizing
CRE Priority
of different workstyles function – that is quick to test, to enhance workplaces strategy in-house
• Enhancing experience for learn and adapt • Upskilling teams on technology • Making actual building
onsite and offsite employees • Driving efficiency through right and AI skillsets to augment performance as the next
and making it seamless sizing of portfolio and improving CRE’s value add frontier as priorities shift to
space utilization carbon reduction
3
CRE as …
Experience enhancers
4
More of people-facing sectors mandate employees to be fully on-site while
In Asia, broadly an even tech-dependent industries are more flexible
split has emerged between
organizations that favour % mandating employees to be in office 5 days a week
some
Body copy,form of hybrid
Arial Regular 14pt font. Healthcare
Manufacturing
71% BFSI
50% Retail
Lorem ipsum dolor sit amet, consectetuer 83%
workstyles and porttitor
thosecongue massa.
48%
adipiscing elit. Maecenas 100% 0%
mandating
Fusce employees
posuere, magna sed pulvinar ultricies,
purus lectus malesuada libero, sit amet commodo
Office advocates
TMT
41%
Data centres
36%
Hybrid adopters
backeros
magna toquistheurna.
office full time
• Second level style for bullets
China and India are leading the office advocate pack, while hybrid adopters are
– Third level style for bullets led by Singapore, Australia and South Korea
– Fourth level style for bullets
Hybrid adopters % mandating employees to be fully in office
– Fifth level style for bullets
51% 61% 56%
44% 42% 40%
Mainland India South Korea Australia Singapore
Office advocates China
49% Office advocates Hybrid adopters
Q: According to your organization’s policy, how many days on average should employees be present in the office?
5
Despite the complex and
evolving workstyles
landscape, office is still 4 in 10
leaders expect the number of days in office to increase by 2030
considered
Body central
copy, Arial Regular to work
14pt font.
Lorem ipsum dolor sit amet, consectetuer
by organizations
adipiscing elit. Maecenas porttitor congue massa.
Fusce posuere, magna sed pulvinar ultricies,
Proportion of organizations expecting increase in number of days in office
purus lectus malesuada libero, sit amet commodo
magna eros quis urna.
Industry % Country %
85%
• Second level style for bullets
– Third level style for bullets Data Centres 49% Australia 55%
of– organizations have
Fourth level style a policy
for bullets Retail 48% India 54%
of at
– least 3 days
Fifth level styleofforoffice
bullets Life Sciences 47% Mainland China 42%
attendance per week TMT 45% Singapore 39%
BFSI 39% Japan 35%
Manufacturing 28% South Korea 32%
Healthcare 20% Hong Kong 27%
Q: According to your organization’s policy, how many days on average should employees be present in the office?
Q: How do you foresee the following factors changing for your organization between now and 2030? - Number of
days per week employees work from the office
6
CRE Priority 7 in 10
CRE leaders foresee increased spending on
• Employee experience
• Supporting the co-existence
• Hospitality services
of different workstyles within • Space design
the organization
• Enhancing and standardizing
experience for onsite and
offsite employees and making 4 in 10
it seamless are likely to pay a premium for healthy buildings that benefit their
employees’ well being
Q: How do you foresee spend on the following items changing
between now and 2030?
Q: How likely are the following scenarios for your office
6 in 10
buildings by 2030? - We will pay a premium to only occupy have resources to invest in spaces & technologies for seamless
buildings with leading health and wellbeing credentials
collaboration of onsite and remote employees
Q: To what extent does your CRE function have a well-defined
program in place to deliver on each of the following objectives?
- Supporting hybrid work (e.g. providing specific spaces and
technologies for collaboration with remote workers)
7
CRE is also aligning spaces to employee demands
36%
have expanded the number
of focus rooms
More than half of
employees’ time in 31%
offices is dedicated to boosted the amount of their
collaboration spaces
individual work.
36%
increased small meeting rooms
Source: JLL report Is Hybrid really working? (2023) Source: JLL Global Occupancy Planning Benchmarking Report 2024
8
By 2030 …
Radical workplace
scenarios that may
unfold and CRE must 4 in 10
prepare for … consider a 4-day working week scenario highly likely
1 in 3
could envisage going 100% remote by 2030 with no office space
at all, relying instead on virtual spaces and team building events
4 in 10
consider establishing different pay and benefits for office and
remote workers
Q: Think ahead to 2030. How likely are the following scenarios for your organization?
9
CRE as …
Efficiency builders
10
Corporates in Asia are TOP 3 TOP 3
showcasing a positive Corporate priorities CRE objectives
outlook to future and CRE
function
Body copy, ArialisRegular
in high14pt font. 1 Growing business revenue
1
Supporting
Lorem ipsum dolor sit amet, consectetuer organizational efficiency
alignment with porttitor congue massa.
adipiscing elit. Maecenas
organizational
Fusce posuere, magna sed goals
pulvinar ultricies,
purus lectus malesuada libero, sit amet commodo
2
Achieving
organizational efficiency 2 Supporting business growth
magna eros quis urna.
• Second level style for bullets
Attracting and retaining Reducing operating costs/
3 3
– Third level style for bullets talent Driving digitization
– Fourth level style for bullets
Q: How important are the following corporate goals for your business over the next five years?
– Fifth level style for bullets Q: What are the key objectives of your CRE function over the next five years?
11
CRE priority
• Delivering an agile CRE 77%
function – that is quick to test, highlight optimizing portfolio as a top goal of occupancy
learn and adapt planning for them
• Driving efficiency through right
sizing of portfolio and improving
space utilization
55%
intend to invest more into CBD locations by 2030
Source: JLL Global Occupancy Planning Benchmarking
Report 2024, JLL Future of Work Research 2024
61%
Q: How do you foresee spend on the following items changing
believe they will have to achieve a better utilization of
between now and 2030? - Investment into CBD locations their CRE portfolio
Q: How do you foresee the following factors changing for your
organization between now and 2030? - Utilization rate of your
CRE portfolio
12
Over the years, tracking CRE leaders tracking space utilization data in APAC
space utilization as a CRE 73%
metric has gained 66%
momentum
Body with
copy, Arial Regular CRE
14pt font. 50%
54%
Lorem ipsum dolor sit amet, consectetuer
leaders
adipiscing elit.aiming for more
Maecenas porttitor congue massa.
accurate
Fusce posuere, workplace
magna sed pulvinar ultricies,
purus lectus malesuada libero, sit amet commodo
planning
magna eros quisand
urna. optimization
• Second level style for bullets
– Third level style for bullets
2017/18 2019/20 2022/23 2024/25
– Fourth level style for bullets
– Fifth level style for bullets
Source: JLL Global Occupancy Planning Benchmarking Report 2024
Optimizing portfolio and space is the
top driver of hybrid program in Asia
13
CRE as …
Technology embracers
14
APAC corporates are
strongly focusing on 90%
digitization and believe agree that their organization will accelerate investment
that AI is going to reshape in AI in the next 5 years
the future workforce
88%
agree AI will change the way their workforce operates
over the next five years
87%
agree they have implemented AI training plans to upskill
their employees in AI
Q: To what extent do you agree or disagree with the following statements about your organization’s approach to
AI (artificial intelligence)?
15
CRE priority
• Harnessing AI and technology 66%
to enhance workplaces CRE leaders foresee their CRE Tech spend increasing
• Upskilling their teams on between now and 2030
technology and AI skillsets
to augment CRE’s value add
1 in 2 organizations are expecting AI and tech enabled workplaces by 2030
• Mapping out CRE activities
that can be carried out by AI Our office spaces will be equipped with the
51% 26% 23%
latest AI-driven technologies
in the future
Highly likely: 80-100% Moderately likely: 60-70% Less likely: 0-50%
Q: How do you foresee spend on the following items changing
6 in 10
between now and 2030? – CRE technology CRE leaders believe that tech and AI would be the most
Q: Think ahead to 2030. How likely are the following scenarios important skill for CRE to add maximum value to business
for your office buildings by 2030?
Q: What skills will be most important for the CRE function to
deliver maximum value between now and 2030?=
16
Tech-enabled workplace: experience, efficiency and engagement
Meeting Room Booking Employee Engagement
Temperature Control Who's coming
Filter and locate rooms What's happening
Book via 3D Maps Surveys
Pre-Integrated with Interest groups
MS Teams Zoom & Outlook Events
Sensors & QR Codes Check-in Team alerts
Visitor Work Status
Management Calendar integration
Space utilization
Frictionless Entry
Smart Access
Employee Check-ln
Desk Booking
3D floor plan view
Book a Check-in via Sensors,
Parking Spot QR. & Wi-Fi
Smart Cafeteria
Camera Find your Colleague
Pre-order Meal Way Finder
Digital Payment Set your Work Status
Space Management
Space Allocation
Amenities Booking
Space Utilization
Book Lockers & Other Amenities
Demand & Supply
e.g. Gym and recreational areas
Automatic restacking
Move Management
17
How it comes together?
An innovative and integrated real estate Driving
platform to drive three areas of impact measurable outcomes
AI powered insights and
intuitive CRE analytics Better building and
asset performance
Service delivery
Intelligent efficiency
operations
Decreased carbon
emissions
Optimized energy
Seamless
Sustainable efficiency
workplace
experiences spaces
Data-driven
insights
Seamless experience
and wellbeing
18
“
CRE leaders expect 72% of
their day-to-day functions being
supported or carried out by AI
by 2030.
Is CRE ready?
Q: How do you expect CRE activities to be carried out in your
organization in the coming 5 years?
19
CRE leaders are gearing
up to embrace technology
and materialize the 6 in 10
are currently piloting or exploring AI use cases on:
organizations’ vision of • Predictive analytics for property valuation, maintenance etc.
tech and AI enabled • Tenant experience optimization
• Automating repetitive tasks e.g. lease administration
workplaces • Smart building management
• Data management and analysis
Top 3 Barriers
• Data quality and availability
• Data and cyber security risks
Q: To what extent do you agree or disagree with the following
statements about your organization’s approach to AI? - Our CRE
• Budget limitation
function has a strategy in place for embedding AI.
Q: What current or potential future use case for AI applied to CRE
are you most excited about?
Q: Which three of the following represent the biggest barriers to
greater adoption of AI by the CRE function?
20
CRE as …
Sustainability partners
21
Corporates in APAC By 2030 …
to pivot to climate resilient
and sustainable workplaces
with an aim of reducing 62%
foresee spend on sustainability performance to increase
carbon emissions
of their portfolio
45%
will only select buildings that are resilient to climate events (e.g.
drought, flooding, hurricanes)
43%
select recyclable furniture and materials from the circular
economy for office fit out
Q: How do you foresee spend on the following items changing between now and 2030?
Q: Think ahead to 2030. How likely are the following scenarios for your office buildings by 2030?
22
CRE priority
73%
• Proactively create portfolio foresee that sustainability strategy for their real estate portfolio will be
carried out primarily in-house
decarbonizing strategy
in-house, while investing
in technology needed
• Making actual building
performance as the next 66%
frontier as priorities shift to strongly agree their CRE function has a well-defined program* to reduce
their environmental footprint
carbon reduction
Q: How do you expect the following CRE activities to be
carried out in your organization over the next five years?
4 in 10
strongly agree that environment stewardship is a skillset needed for CRE
Q: To what extent does your CRE function have a well-defined to add value to business
program in place to deliver on each of the following objectives?
- Reducing environmental footprint e.g. waste reduction plans,
net zero carbon roadmap, etc.
Q: What skills will be most important for the CRE function to * Well defined program refers to a program with a clear set of goals together with supporting activities and
deliver maximum value between now and 2030? actions, and appropriate allocation of budget and resources
23
CRE as …
Value drivers
24
Corporates are Business leaders expect CRE function to deliver the most value in…
expecting CRE to add
value on conflicting Supporting business growth 43%
priorities – innovation vs. Supporting digitization of business 40%
operation costs… while Supporting organizational efficiency 40%
talent attraction
Supporting innovation 32%
becomes secondary
Reducing operating costs 32%
Supporting hybrid work 31%
Supporting talent attraction and retention 30%
Reducing environmental impact 29%
Delivering greater community impact 21%
Short-term priority Long-term priority
Q: In which of these areas could the CRE function deliver the most value to your organization over the next
five years?
25
Changing and
4 in 10
volatile business CRE leaders find it difficult to plan for the long term given the changing
environment makes organizational landscape
it difficult for CRE
decision-makers 2 in 5
to deliver cite lack of talent and relevant skills internally as the top constraint limiting
CRE’s ability to add value
maximum value
Q: What are the top three constraints that will limit CREs ability to add value between now and 2030?
26
Strategic partnerships will 62%
of CRE activities could be mainly or partially outsourced
play a key role in adding in next 5 years
expertise to the CRE function, Outsourcing of CRE activities
38%
which will help them to add 34%
greater value to business 24%
4%
Not Mostly Blended Mostly
applicable in-house approach outsourced
CRE activities outsourcing trend
Outsourcing of CRE activities in next 5 years
Blended approach (part in- 38%
TOP 5 house, part outsourced) 22%
• Renewable energy supply and sourcing
• Lease administration 2024 2022
• Facilities management
Source: Future of Work Research 2022 and 2024
• Workplace design and fit-out Q: How do you expect the following CRE activities to be carried out in your organization
• Day-to-day occupancy planning and management over the next five years?
27
Creating a future-ready CRE function:
Time to act is now!
Align and partner with the Engage with HR to create Identify CRE activities for
C-suite to support CRE a compelling Employee "AI Co-piloting" with new
investment(s) Value Proposal to meet Technology and CRE
changing work patterns talent upskilling
and talent demands
Move from ambition Reengineer the CRE
to action: Identify function with new target
key milestones to operating models including
achieve ESG goals key strategic partnerships
28
Thank you
Kamya Miglani James Taylor Yu Lin Foo
Research Director, APAC Head of Work Dynamics Research Analyst, APAC
Research, APAC
JLL Work Dynamics JLL Work Dynamics
JLL Work Dynamics
[email protected] [email protected]
[email protected]
912 responses across 7 key markets in APAC
2,333 responses globally
EMEA 36%
Americas 24% Finland 57%
Canada 101% Sweden 53%
USA 268% UK 109%
Mexico 50% Americas Ireland 101%
EMEA
Columbia 25% Belgium 100%
Peru 25% APAC France 113%
Chile 25% Lux 10%
Brazil 50% Germany 100%
Argentina 25% Italy 105%
Middle East 100%
APAC 40%
Other <1% China Mainland 101%
Other 4 India 268%
Japan 50%
South Korea 25%
Hong Kong 25%
Singapore 25%
Source : JLL Future of Work Research, 2024 Australia 50%
30
Disclaimer
The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely
for the purposes of evaluating this proposal. All such documentation and information remains the property of
Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only
to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization
of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation
or warranty is made as to the accuracy thereof.
31
912 responses across 7 key markets in APAC
2,333 responses globally
32 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
