Offices see priorities shifting towards wellness, accessibility and facilities

Wellness has become a priority for more and more office occupiers as the trend towards a healthy lifestyle continues to grow. In Singapore, this has seen a wave of new gyms popping up this year, providing amenities such as class-based and strength training. For example, Anarchy Club opened a 3,800 sq ft space on the fifth floor of 61 Robinson Road in July; while Sparkd opened a brain-body fitness gym on the same floor of the building with 1,570 sq ft. Lab Studios debuted a pilates, barre and yoga studio on the second floor of a shophouse on Stanley Street in February, joining Sphere Gym, a 4,800 sq ft training and recovery gym which had opened at Cecil Building last year, and Revolution spin studio, which opened at Frasers Tower in 2021.

Lumina Grand Bukit Batok provides a safe, convenient and pocket-friendly option to reach any destination with ease. The nearby JRL station and shopping malls, Johnston Mall and IMM, offer residents with additional transportation options and a wide range of entertainment, dining and shopping options. With the location’s proximity to these amenities, Lumina Grand EC is the ideal place to call home.

Luke Moffat, regional managing director and head of CBRE advisory and transaction services, Asia Pacific, commented that “features like gyms, end-of-trip facilities, nursery rooms, massage rooms, good F&B or good-quality air filters are the sort of things you need to have for the well-being of the staff”. According to CBRE’s 2023 Asia Pacific Office Occupier Sentiment Survey, which was launched in June, office occupiers prioritise accessibility to public transport, carpark, sustainable building features and operations, shared meeting space, flexible office space, F&B options on site and fitness facilities.

The survey revealed that 69% of office workers place greater importance on their work environment than they did pre-pandemic – a trend driving demand for higher-quality office space and future-proofed office buildings. Asia Pacific continues to lead the US and Europe in the return to the office, with an average office utilisation rate of 65% as of March 2023, while the US and Europe had just 50%.

However, when it comes to green building adoption, few occupiers are willing to pay a rental premium. Fewer than 25% of survey respondents stated they would be willing to pay higher rents to lease green space, with only 10% willing to pay a premium of 10% or higher. This is despite the fact that a building with a high rating in terms of wellness and sustainability is much more saleable, according to Moffat.

In Singapore, tight market conditions have continued to hold up the office market. URA office rental index increased by 2.3% q-o-q in 2Q2023, slightly slower than the 5.1% q-o-q increase in 1Q2023. Prices in Category 1 (a proxy for prime CBD) office space accelerated by 6.7% q-o-q in 2Q2023, due to the prevailing tight vacancy levels. However, when IOI Central Boulevard Towers opens in 1Q2024, the vacancy rate could slightly increase.

Flight to new-build and flight to green will remain prominent trends, as Asia Pacific regional vacancy rises to a 20-year high of 18% in 1H2023 and set to remain elevated for the remainder of the year. Expansionary sentiment, however, is subdued, with occupiers focusing on space optimisation and retaining a prudent attitude towards portfolio planning. Ultimately, although flight to quality and a focus on green buildings remain key trends, new buildings will take longer to fill up due to the challenging macroeconomic environment.