Tech firms lease ‘most Asia-Pacific office space in Q2’ | 07 October 2014
A new report has found that most new office space in Asia is being leased by technology firms over any other industry sector.
The study, conducted by property consultant Cushman and Wakefield, looked at office take-up in Q2 2014 and discovered that tech companies had leased more space than financial businesses, commercialguru.com.sg writes. Much of this occurred in Singapore.
Growth in social media and e-commerce has seen firms such as LinkedIn and Amazon assume 21 per cent of the quarter’s new leases, compared with just 14 per cent going to banks and other financial businesses. In total, the tech firms leased 1.1 million square foot of new office space – an amount that was more than the previous three quarters’ totals combined.
Many of the tech firms are said to be taking over buildings that have been vacated by banks – in Singapore, LinkedIn recently moved into a property that was previously occupied by Barclays, for example.
Speaking to wsj.com, Cushman and Wakefield managing director of Asia-Pacific research, Sigrid Zialcita, said that the online trends were likely to continue for several years, with its effects being felt across the continent. Singapore especially is attractive to tech firms. However, the increased demand for office space could affect prices.
“Singapore is the gateway to Southeast Asian market,” she said. “The appetite from new tech companies is going to reduce vacancy and drive rent higher.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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