Rising Demand Future Ready Workspaces Apac Cushman Wakefield
Cushman & Wakefield reports that the Asia-Pacific (Apac) office sector is at a turning point, as it enters a new era of strategic maturity. The fast-paced growth of the past decade has given way to a fundamental shift in how occupiers approach office space.
Anshul Jain, the firm’s CEO for India, Southeast Asia, Middle East and Africa, and Apac head for offices and retail, states, “It’s no longer just about expansion. The office has become a platform for brand expression, cultural alignment, and performance.”
According to the report, Apac’s Grade A office stock, referring to top-quality office buildings, has doubled from 1.2 billion sq ft in 2015 to 2.33 billion sq ft as of 2Q2025. During the same period, 900 million sq ft of Grade A office space was absorbed, with the majority located in cities across India, Southeast Asia, and mainland China.
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While the increased supply has caused vacancy rates to rise from 13% to 18% across the region, it also reflects a shift in occupiers’ mindset. Companies are now prioritizing spaces that foster talent, support ESG commitments, and enable long-term resilience.
The growing demand for future-proof workspaces in Apac is primarily driven by office markets in mainland China, India, and Southeast Asia, notes Cushman & Wakefield. In China, the technology, media, and telecommunications, professional services, and finance sectors have maintained steady demand, resulting in a doubling of occupied Grade A office stock to 640 million sq ft. These industries, along with emerging ones such as artificial intelligence, biomanufacturing, and quantum computing, are expected to continue driving demand and fuel the current trend of flight to quality among occupiers.
In India, cities that have become hubs for global capability centers, such as Bengaluru, Mumbai, and Hyderabad, are the main drivers of office leasing activity. India saw an annual net absorption of 40 million sq ft across its top cities from 2023 to 2024, with demand increasingly focused on Grade A+ buildings as the country positions itself as a leading destination for digital transformation and R&D.
In Southeast Asia (SEA), occupied Grade A stock has grown by 10% over the last five years, reaching 235 million sq ft in 2024. Despite higher vacancy rates, prime developments in cities like Manila, Bangkok, and Ho Chi Minh City are commanding record-high rents, with prime Grade A offices achieving rents 20% above overall market benchmarks, according to Cushman & Wakefield.
While demand in key SEA markets continues to be driven by the banking and finance industry, tech companies, information technology, business process management providers, and healthcare firms are also expanding across the region. This has resulted in a growing sophistication in tenant requirements, highlighting the need for higher-quality spaces.
Among the markets studied in the report, Singapore stands out for having the lowest office vacancy rate at 5%. This is despite having the highest office rental cost at US$103.1 ($132.3) per sq ft per year. While neighboring markets face higher vacancy rates (such as Kuala Lumpur at 28% and Bangkok at 27%), Singapore maintains strong demand, reflecting its role as a regional financial and tech hub.
As the Apac office market reaches maturity, Cushman & Wakefield predicts we will see more strategic reinvention of office spaces. According to Dominic Brown, the firm’s head of international research, “We’re seeing a shift from volume to value – where the quality of space, its alignment with ESG goals, and its ability to support innovation are becoming the new benchmarks.”