Office Space Market is expected to grow at a CAGR of 4.8% through 2030F
The global Office Space Market is
expected to be led by North America, driven by Globalization and Outsourcing and
Corporate Culture and Talent Retention during the forecast period 2026-2030F
According to TechSci Research
report, “Office Space Market
- Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2030F, The Global Office Space Market was valued at USD 3.9
trillion in 2024 and is expected to reach USD 5.2 trillion by 2030 with a CAGR
of 4.8% through 2030. As cities around
the world continue to expand, particularly in emerging economies, there is a
heightened need for office spaces to accommodate the increasing number of
businesses and employees. Urban centers are becoming key business hubs,
attracting both local and international companies seeking prime office
locations. The influx of talent and businesses into cities fosters demand for
office space across commercial districts.
Additionally,
the increasing reliance on technology is another driving factor. As companies
prioritize digital transformation and technological infrastructure, the demand
for smart office spaces equipped with high-speed internet, advanced
communication systems, and cloud-based solutions continues to rise. These
tech-enabled office environments are becoming essential for businesses aiming
to enhance productivity and stay competitive in a digital-first world.
Furthermore,
the rise in foreign direct investment (FDI) in emerging markets has
significantly boosted the office space market. Companies from developed
economies are increasingly establishing regional offices in high-growth
markets, creating substantial demand for office spaces. As these markets grow
and mature, their need for modern, flexible, and well-located office spaces
will continue to drive the market forward. Thus, urbanization, technological
advancements, and FDI are key additional drivers shaping the global office
space market's growth.
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Based on Type, Sell segment dominated
the Office Space Market in 2024 and maintain its leadership throughout the
forecast period, due to the increasing preference for ownership over leasing,
particularly among large corporations, investors, and developers. As the global
economy continues to recover and businesses seek stability, owning office
spaces provides long-term financial benefits and security. Companies,
especially those with significant operational needs, are increasingly inclined
toward purchasing office buildings, allowing them to have greater control over
their properties and avoid rising lease costs associated with rented spaces.
This trend has been particularly evident in key business hubs where real estate
prices remain high and long-term leasing costs are becoming less attractive
compared to the stability provided by ownership.
In addition to corporate demand, real
estate investors have increasingly favored the "Sell" segment as
commercial office spaces become more valuable over time, especially in
high-demand urban areas. Investment in office properties offers steady income
through rental yields, and in many cases, properties appreciate in value,
providing capital gains on eventual sales. Furthermore, buying office spaces
allows for flexibility in terms of renovation, expansion, and long-term
strategic planning, which leased spaces might not provide.
Another key factor driving the dominance
of the "Sell" segment is the growing interest in real estate as an
asset class. Institutional investors, pension funds, and private equity firms
are increasingly looking to acquire office spaces as a way to diversify their
portfolios and hedge against inflation. The rise in demand for premium office
spaces, particularly those with sustainability features, also contributes to
the prominence of the "Sell" segment. These assets, being more resilient
in terms of value retention, are highly sought after by investors who
prioritize sustainability and long-term performance.
Additionally, the surge in demand for
high-quality, flexible office spaces that cater to the hybrid work model has
fueled the "Sell" segment. Companies are now focusing on owning
office properties that can be easily adapted for modern work styles, providing
shared workspaces, collaboration areas, and high-tech features to meet the
needs of a diverse workforce. The flexibility to renovate and adapt spaces for
evolving business needs makes owning office space a more attractive option for
businesses aiming to future-proof their operations. In conclusion, the
"Sell" segment continues to dominate the office space market, driven
by the increasing desire for control, stability, investment returns, and
adaptability. As businesses and investors continue to prioritize ownership, the
demand for purchased office spaces is expected to remain strong, shaping the
market for the foreseeable future.
Asia Pacific is emerging as the
fastest-growing region for the Office Space Market, driven by robust economic
growth, urbanization, and the expansion of multinational companies. Cities like
Beijing, Mumbai, Singapore, and Tokyo are witnessing an increasing demand for
office spaces, spurred by their growing importance as business hubs. As
economies in the region continue to expand, businesses are investing more in
high-quality office environments to support their operations, collaborate
effectively, and enhance productivity.
Urbanization is a significant factor,
with more people moving to major cities for work opportunities, leading to a
higher demand for office spaces. Additionally, the rise of technology-driven
industries, such as fintech, IT, and e-commerce, has fueled the need for modern
office environments that can accommodate large teams and foster innovation.
Furthermore, the shift towards flexible
and hybrid work models is gaining momentum across Asia Pacific, prompting an
increased interest in coworking spaces and flexible lease terms. Companies are
seeking office spaces that can easily adapt to evolving business needs and
provide collaborative environments for a hybrid workforce. The growth in the
real estate sector, coupled with increasing foreign investment, is also
contributing to the rise of office space demand in the region. As a result,
Asia Pacific is poised to remain a dominant player in the global office space
market, with consistent growth projected in the coming years.
Key market players in the Office Space
Market are: -
- WeWork Companies Inc.
- Regus Group (International Workplace
Group plc - IWG)
- CBRE Group, Inc.
- Jones Lang Lasalle Incorporated (JLL)
- Keller Williams Realty, Inc.
- Cushman & Wakefield plc
- Colliers International Group Inc.
- Savills plc
- Tishman Realty & Construction LLC
- The Office Group Ltd.
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“The global office space market presents
several promising opportunities, primarily driven by evolving work patterns,
technological advancements, and increased demand for flexibility. As businesses
transition to hybrid and remote work models, the demand for flexible office
spaces, such as coworking environments, is rapidly growing. This shift opens
opportunities for companies to cater to businesses seeking adaptable office
solutions that support both in-person and remote collaboration. Additionally,
sustainability is becoming a critical focus, with companies increasingly
prioritizing eco-friendly office spaces that align with their environmental
goals. This presents opportunities for developers and property managers to
design and build green buildings with energy-efficient features and sustainable
practices, which are becoming highly sought after by tenants and investors.” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“Office Space Market –
Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By
Type (Rent, Sell), By Application (Finance Sector, Retail & Consumer Goods,
IT and Telecommunication, Co-Working Space, Manufacturing Industry, Others), By
Region, By Competition, 2020-2030F” has
evaluated the future growth potential of Office Space 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 Space Market.
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