HONG KONG, CHINA--(Marketwired - January 06, 2016) - 2016 promises to be a boom year for office occupiers with plenty of fresh supply hitting the market, according to forecasts by Colliers International. This will provide occupiers with lots of options for expansion as well as consolidation as as they continue to intensify their push to differentiate between client-facing front-office locations and decentralised back-office space.
"Multinational occupiers will continue to focus on keeping costs in check," Sam Harvey-Jones, managing director of occupier services, Asia, says. "This requires carefully balancing cost management and space efficiency when making leasing decisions.They will have plenty of options. There is 110 million sq ft of new Grade A office space due for completion in 2016, on top of the 100 million sq ft of additional space that was earmarked for completion in 2015."
Colliers estimates that 70% of the new space will be in India and China alone, and vacancies will push into double digits in the tier 1 Chinese cities of Shanghai, Shenzhen and Guangzhou. But similar vacancy rates will also occur in Chengdu, and in the prime Indian markets: Delhi, Mumbai, Chennai and Bengalaru. Truly prime space will however, remain at a premium in the core of these cities. Much of the new space will be in decentralised locations which are more fitting for back offices.
Trends in the technology sector are also reshaping the occupier market across Asia, and Colliers envisages tech firms aggressively growing and looking for premium quality space. Cross-border e-commerce will be the "hottest ticket in town" in 2016, with China and India the key growth locations.
Offshoring and business process outsourcing have resulted in rapidly increasing demand for custom space for those purposes in India and, increasingly, the Philippines. In 2016, Colliers anticipates that India will differentiate itself by targetting outsourced software development in particular. The Philippines has succeeded in positioning itself as the dominant supplier of call centers thanks to an exceedingly high national English-proficiency rating of 92.5%.
For more results from Colliers International's Asia Property Outlook 2016 report, please visit http://www.colliers.com/en-gb/asia/realestate2016.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI)(TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals' Global Outsourcing for 10 consecutive years, more than any other real estate services firm.
For the latest news from Colliers International, visit Colliers.com, or follow us on Twitter: @ColliersIntl and LinkedIn. To see the latest news on Colliers International in Asia and Hong Kong, follow https://www.linkedin.com/company/colliers-international-asia, https://twitter.com/colliersasia and https://www.youtube.com/user/ColliersIntlAsia.
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