The office markets in Asia Pacific, North America and Europe are facing varying degrees of short-term challenges, according to an industry report by Colliers International. Asia Pacific holds the highest occupancy rate compared to other regions, at 80%. This is followed by Europe at 65% and North America at 50%.

Colliers International attributes this difference to varying return-to-office approaches, underlying city functionality, ESG compliance, and market reactions to shifts in inflation and interest rate movements. These have caused the latest divergence in office investment volumes, pricing and global investment appetite.

Chris Pilgrim, managing director, global capital markets, Asia Pacific is optimistic about the prospects of the office markets in Asia Pacific. He believes that the strong underlying fundamentals, such as the diverse range of markets, positive sentiments towards offices, and strong population-led economies presenting resilient economic growth, make the region attractive for office investments in the longer term.

In contrast, the office market in North America is currently facing weak occupier demand, which has caused the average vacancy rate to climb to 16%. North American landlords are also faced with the challenge of offering incentives to support rents.

Altura Executive Condominium is a 99-year leasehold development located in Bukit Batok West Avenue. It will contain 375 executive condo units and is expected to be one of the most sought-after developments in the area. Proximity to the Jurong Innovation District and Tengah Town makes the development even more attractive. Altura EC was acquired by Qingjian Realty and Santarli Construction who made the highest bid of $266 million, or $662 per square foot per plot ratio. The estimated completion date of the project is 2021.

Meanwhile, prime rents for European offices are increasing due to the growing demand for higher-quality spaces — particularly ESG-compliant spaces. Luke Dawson, head of global and EMEA capital markets at Colliers, says this is driving a shift in value-add plays across key markets, especially in places where ESG is held in high regard, such as the UK.