Half of APAC companies eye office space expansion over the next three years

The expansion will be driven by organic business growth.

Half of companies across Asia Pacific expect their office space to expand over the next three years, with business growth and demand for higher-quality workplaces supporting selective expansion, according to CBRE's 2026 Asia Pacific Office Occupier Survey.

Among respondents expecting to expand, 60 per cent identified organic business growth as the main driver. CBRE said expansion is increasingly focused on quality rather than broad-based growth, with companies consolidating or exiting lower-quality space while investing in premium facilities.

The trend is creating renewed demand for additional capacity in some markets as occupiers face increasingly space-constrained workplaces. Expansion sentiment is particularly strong in India and Japan, where limited availability is constraining demand, according to CBRE.

In mainland China, technology and new energy companies are continuing to pursue growth, although at a more measured pace than elsewhere in the region.

Location and building quality remain important considerations for occupiers. Nearly half of respondents, or 48 per cent, expect their offices to be located in central business districts, while 85 per cent prefer Grade A buildings or above.

Ada Choi, Head of Research, Asia Pacific at CBRE, said companies are balancing the need to improve portfolio efficiency with the continued focus on employee experience.

While there has been speculation that AI could reduce office demand, Choi said most organisations remain at an early stage of assessing its impact, with minimal short-term effects on real estate requirements identified in the survey.

As companies rebalance their portfolios, CBRE expects future office growth to be concentrated in higher-quality workplaces, while lower-value space is rationalised.