Nearly 20% of Asia-Pacific Firms Expect AI to Cut Office Space, CBRE Finds
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Nearly one-fifth of surveyed companies in the Asia-Pacific region believe wider adoption of artificial intelligence will reduce their real estate needs, a study by property consultancy CBRE has found.
More than half, 56 per cent, held a neutral view, believing either that AI had no impact on office space demand or that it was too early to determine its effect, while 25 per cent said AI adoption would require them to expand their office footprint.
The survey of 651 corporate real estate executives, conducted between May 26 and July 10 across nine regional markets, showed that AI currently has a more significant impact on office operations than on physical space requirements, according to Ada Choi, head of research for Asia-Pacific at CBRE.
Operational Shift Outpaces Desk Reductions
Corporate deployment of machine learning in property management expanded sharply over the past two years. The survey, conducted between May 26 and July 10 across nine markets including Hong Kong, mainland China, Singapore, Japan, Australia and India, found that 46 percent of occupiers now classify themselves as active AI adopters in corporate real estate functions. That represents a steep increase from 9 percent recorded in 2024.
Automation currently assists facility monitoring, leasing analytics, space planning and workplace energy management rather than eliminating core real estate demand. Property teams use algorithmic tools to streamline building maintenance schedules and track daily badge swipes, turning automation into an administrative efficiency tool rather than a headcount guillotine.
Regional leasing patterns show that companies rebalance rather than abandon their commercial leases. Fifty percent of surveyed occupiers project portfolio expansions through 2029, with 60 percent citing organic corporate growth as the primary catalyst.
The Flight to Prime CBD Assets
Commercial tenants are executing a deliberate flight to quality across major Asian financial centres. Eighty-five percent of surveyed occupiers specify Grade A buildings or higher for future commitments, and 48 percent demand space inside central business districts.
“Fifty percent of surveyed occupiers project portfolio expansions through 2029, with 60 percent citing organic corporate growth as the primary catalyst.”
This consolidation into top-tier commercial towers squeezes secondary and decentralised office parks. Landlords holding modern assets with green credentials and flexible floorplates capture leasing activity, while older secondary stock faces structural vacancy as corporate tenants offload low-grade square footage to fund premium addresses.
The bifurcation penalises owners of dated suburban business parks who banked on decentralisation during earlier cost-cutting cycles. Institutional capital in Asia is now forced to either invest heavily in asset enhancement programmes or accept prolonged rent discounts to retain secondary tenants.
Stabilised Attendance Anchors Space Requirements
Physical workplace presence has normalised across the region at levels far higher than in North America or Western Europe. Eighty-eight percent of respondents confirmed their employees work in the office at least three days per week, marking the highest rate recorded since the start of the pandemic. An additional 85 percent stated that desk attendance has reached a permanent equilibrium.
“With attendance and utilisation largely stabilised at higher levels, companies are no longer focused only on bringing employees back to the office,” said Tom Gaffney, head of leasing for Asia-Pacific at CBRE.
Space shortages are most acute in Tokyo and major Indian tech hubs, where tight supply limits available Grade A options. In mainland China, corporate expansion continues at a measured pace, led by domestic technology, software development and clean energy enterprises taking advantage of softened prime rental rates in top-tier cities.
Labour Market Realities and Future Leases
The resilience of physical leasing contrasts with broader corporate polling on long-term workforce headcounts. A World Economic Forum survey conducted last year across 55 economies found that 41 percent of employers planned to reduce headcount as software automated standard white-collar tasks, raising questions about future desk utilisation.
Asia-Pacific commercial occupiers have sidestepped immediate floorplate cuts by redirecting automated productivity gains into higher transaction volumes and new service lines. Corporate real estate directors are structuring three- to five-year leases around steady headcounts while monitoring whether generative workplace tools eventually alter administrative staffing models.
Commercial landlords now watch the final quarter of 2026, when a heavy schedule of prime Hong Kong and Tokyo lease renewals will test whether tenant expansion pledges turn into binding long-term contracts.