Office Real Estate Market is expected to grow at a CAGR of 5.1% through 2030F
The global Office Real Estate Market is
expected to be led by North America, driven by Flight to Quality (Premium
Spaces) and ESG and Green Building Trends during the forecast period 2026-2030F
According to TechSci Research
report, “Office Real Estate
Market - Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2030F, The Global Office Real Estate Market was valued at
USD 2.5 trillion in 2024 and is expected to reach USD 3.4 trillion by 2030 with
a CAGR of 5.1% through 2030. As global economies rebound from the pandemic,
businesses are expanding their operations, which directly increases demand for
office space. The rise in business activities, particularly in sectors such as
finance, technology, and professional services, has led companies to invest in
high-quality office spaces to support collaboration and growth.
Another
driver is technological innovation in the real estate sector. The integration
of smart technologies into office buildings, such as advanced HVAC systems,
IoT-enabled devices, and automated management tools, is transforming office
spaces into more efficient, sustainable, and user-friendly environments. These
technological enhancements attract businesses that prioritize operational
efficiency and modern amenities.
Additionally,
changing workforce dynamics are influencing the office real estate market.
Companies are focusing on creating workspaces that foster collaboration,
creativity, and employee well-being, especially as the demand for
employee-centric offices increases. The shift towards hybrid work models
requires businesses to rethink traditional office layouts and offer flexible,
collaborative environments that support both in-person and remote work. Lastly,
urban regeneration projects and investments in infrastructure are revitalizing
old districts, creating new opportunities for office real estate developments
in previously underdeveloped areas. These factors are driving demand for office
spaces globally.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the "Global Office Real Estate Market"
Based on Property Type, Non-Corporate
Office segment dominated the Office Real Estate Market in 2024 and maintain its
leadership throughout the forecast period, driven by the increasing demand for
flexible workspaces, co-working spaces, and decentralized business models. This
shift is a direct result of the growing number of small and medium enterprises
(SMEs), startups, and freelance professionals seeking adaptable office
solutions that do not require long-term commitments or extensive investments.
The flexibility offered by non-corporate office spaces, including shared
workspaces and short-term leasing options, has made it an attractive
alternative to traditional corporate offices for businesses across various
sectors.
In recent years, the rise of remote and
hybrid work models has significantly accelerated the demand for non-corporate
office spaces. Many organizations, particularly in technology, consulting, and
creative industries, are moving away from large, centralized office locations
in favor of smaller, more flexible spaces closer to their employees’ homes.
This trend reflects the growing importance of work-life balance, with companies
offering their teams the flexibility to work from multiple locations, such as
co-working spaces, at-home offices, and corporate hubs.
Non-corporate office spaces also provide
the advantage of being cost-effective. Unlike corporate offices, which require
businesses to invest in expensive real estate and long-term leases,
non-corporate offices allow companies to scale their operations as needed,
without committing to fixed costs. Shared office facilities, for instance,
provide amenities like high-speed internet, meeting rooms, and administrative
support, all included in the lease, reducing operational expenses.
Additionally, co-working spaces allow businesses to grow at their own pace,
adjusting the size of their office space according to demand and project needs.
This segment also appeals to
freelancers, remote workers, and entrepreneurs who do not require full-time
office space but still need a professional environment to collaborate with
others and host meetings. Non-corporate offices offer the necessary infrastructure,
such as hot desks and dedicated offices, as well as networking opportunities,
which are crucial for businesses aiming to expand their professional
connections and resources.
Furthermore, the increasing focus on
sustainability and the environment has contributed to the popularity of
non-corporate office spaces, as many co-working spaces and flexible office
providers are incorporating eco-friendly features like energy-efficient
lighting, waste reduction programs, and green building certifications into
their offerings.
Asia Pacific is emerging as the
fastest-growing region for the Office Real Estate Market, driven by robust
economic growth, urbanization, and evolving workplace dynamics. The region,
home to some of the world’s largest and most dynamic economies, including
China, India, Japan, and Southeast Asia, is seeing a significant increase in
demand for office spaces, particularly in major cities like Tokyo, Shanghai,
Sydney, Singapore, and Mumbai. The growing number of multinational corporations
and expanding local businesses is fueling the need for modern office spaces
that support both traditional and flexible work models.
Urbanization is a key driver of this
growth, with large populations moving to urban centers in search of better job
opportunities and living conditions. This has led to a boom in office space
demand, especially in cities that are becoming key economic hubs. As business
districts expand, there is a heightened need for grade-A office buildings with
advanced facilities, sustainable designs, and strategic locations. This urban
growth is not limited to tier-one cities; tier-two and tier-three cities are
also seeing an uptick in office real estate activity as businesses look to
diversify operations and capitalize on lower costs compared to larger, more
saturated urban centers.
The shift towards hybrid and flexible
work models is another significant factor driving the growth of office real
estate in the Asia Pacific region. Many companies in the region, particularly
in sectors like technology, finance, and professional services, are adopting
flexible workspace solutions. The demand for co-working spaces and flexible
office arrangements has surged, as businesses look for cost-effective ways to
accommodate their workforce. This shift aligns with global trends toward remote
and hybrid work but is particularly relevant in Asia Pacific, where
entrepreneurial spirit, rapid digitalization, and a young, tech-savvy workforce
are reshaping business practices.
Additionally, the region is seeing a
growing focus on sustainability in office space development. As environmental
concerns gain traction across Asia Pacific, developers are increasingly
incorporating green building certifications, energy-efficient systems, and
eco-friendly designs into their projects. This shift not only aligns with
global sustainability trends but also responds to the growing demand from
tenants who are prioritizing ESG (Environmental, Social, and Governance)
factors in their office space decisions.
Furthermore, significant investments in
infrastructure and government support for business growth are contributing to
the expansion of the office real estate market in the region. The development
of transportation networks, smart city initiatives, and digital infrastructure
is making office spaces more accessible and connected, further boosting the
market’s growth prospects.
Key market players in the Office Real
Estate Market are: -
- Savills
- Cushman & Wakefield
- CBRE Group
- JLL
- Panchshil Realty
- Indiabulls Real Estate
- DLF Limited
- Prestige Estate Projects Ltd
Download Free Sample Report
Customers can
also request for 10% free customization on this report.
“The global office real estate market
presents several key opportunities driven by evolving work trends, urban
growth, and technological advancements. One of the most significant
opportunities lies in the demand for flexible workspaces. With the rise of hybrid
and remote work models, businesses increasingly seek adaptable office solutions
such as co-working spaces and short-term leases. This shift offers real estate
developers and investors the chance to create and expand flexible office
environments that cater to the growing needs of small businesses, startups, and
freelancers. Additionally, the focus on sustainability opens doors for
developers to invest in green building projects, incorporating energy-efficient
designs and eco-friendly materials to meet rising demand for sustainable office
spaces.” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
“Office Real Estate
Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Property Type (Corporate Office, Non-Corporate Office), By Rental
model (Traditional long-term leases, Flexible lease arrangements), By Region,
By Competition, 2020-2030F” has
evaluated the future growth potential of Office Real Estate Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Office Real Estate Market.
Contact
TechSci Research LLC
420 Lexington Avenue,
Suite 300, New York,
United States- 10170
M: +13322586602
Email: [email protected]
Website: https://www.techsciresearch.com