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JLL Joins World Green Building Council’s Expanding APAC Network

12 November, 2024/in News, Sustainability /by developer

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JLL has announced that it has joined the World Green Building Council’s (WorldGBC) Asia Pacific Regional Network (APN). The APN Is led by 17 Green Building Councils (GBCs) and three regional partners, representing a region home to over 60% of the world’s population and expected to contribute to over 50 percent of global GDP growth in the coming decades.

The announcement is reinforced by the region’s position at the forefront of adopting green building practices, with several countries implementing stringent green building codes and standards. However, the region is also vulnerable to the impacts of climate change; rising sea levels, extreme weather events, and biodiversity loss are amongst the many challenges faced.

The dual drivers of high adoption of green building practices and the impact of climate change will likely ensure that the region is a critical focus for climate resilience initiatives. For JLL, the APN brings opportunities to address the climate crisis at both a local and global scale and from an economic perspective, supporting the region’s ambitions as a key hub in global manufacturing and supply chains,

“There is no bigger conversation within the built environment than sustainability actions, initiatives and strategies. Our clients are proactively working towards net zero carbon targets and demanding more from us as advisors. This platform will be boosted hugely with our closer linkage with the World GBC,” said Lili Tao, Managing Director, South East Asia, Project and Development Services (PDS), JLL (pictured above).

“We are thrilled to welcome JLL as a Regional Partner. Their collaboration further strengthens our commitment to advancing sustainable built environments across the network and beyond. The Asia Pacific region is pivotal in shaping the future of global sustainability. With JLL’s expertise and leadership in real estate, we are confident that by working together, we can drive meaningful change to ensure that our built environments support, and actively contribute to, a sustainable future, for our region and the world,” said Joy Gai, Strategic Partnership Lead and Asia Head, WorldGBC.

Asia Pacific Investment Volumes Fell 22 Percent in 2023 Third Quarter

24 November, 2023/in News /by Editor

Reading Time: 3 minutes

Commercial real estate investment activity in Asia Pacific moderated 22 percent year-on-year (YoY) in the third quarter of 2023, recording the lowest quarterly figure since Q2 2010. According to data and analysis by global real estate consulting firm JLL, investment activity in Asia Pacific fell to US$21.3 billion as investments in office and retail continued to experience sharp contractions, while industrial & logistics and living & multifamily sectors remained resilient.

“Despite a strengthening return to office narrative and low vacancy rates in many markets, investors remain generally more cautious on the office sector. The high cost of debt has also exerted repricing pressures and most markets remain in price discovery mode as investors adjust their targeted returns for acquisitions. We maintain our confidence in the longer-term attractiveness and resilience of Asia Pacific’s commercial real estate but remain realistic that investors are seeking more clarity on pricing and the macroeconomy,” said Stuart Crow, CEO, Asia Pacific Capital Markets, JLL (pictured above).

Across the third quarter, China emerged as the most active market in Asia Pacific. Investment volumes bucked the downward trend and totalled US$4.7 billion, up 43% YoY from a low base, despite limited participation from overseas investors. For domestic investors and corporate occupiers, industrial & logistics and assets equipped for R&D were the primary recipients of capital. In Hong Kong, investment activity reached US$0.8 billion, up 15% YoY with most transactions consisting of small lump sum deployments involving strata-title assets for owner occupation.

Japan recorded investment volumes of US$4.1 billion, a 3% YoY growth. Industrial & logistics remained an active sector within the market, with two notable portfolio acquisitions made by domestic investors, and listed J-REITs acquired hotel portfolios amid a rapid tourism recovery and rising hotel room prices.

South Korea garnered US$4.2 billion worth of transactions, falling 35% YoY as domestic investors exhausted a large portion of their blind funds, along with shrinking office volumes caused by subdued sentiment amongst global core investors. Meanwhile, investment volumes in Australia plunged 47% YoY to US$3.8 billion. The investment market remained slow as price discovery continued amid rapid funding cost changes. Re-allocation into industrial & logistics and student housing assets took place with conviction growing in these sectors. Singapore investment volumes declined 11% to US$2 billion, with notable acquisitions in the hotels & hospitality and retail sectors.

“In the region, interest rate hike cycles are nearing their end – the Reserve Bank of New Zealand and Bank of Korea are likely to conclude their monetary tightening whilst the Reserve Bank of Australia may have more work to do. Thus, regional fixed rates are now closely resembling floating rates, apart from Japan as it plans to move towards policy normalisation,” said Pamela Ambler, Head of Investor Intelligence, Asia Pacific, JLL (pictured above).

“As we approach the end of 2023, investors will weigh the elevated cost of capital against an uncertain macroeconomic environment. With the Fed’s upcoming decision on adjusting interest rates, we can also expect investment activity to pick up as the cost of debt eases.”

Habitap Announces Strategic Partnership with JLL to Provide Super-app for Tenants

26 August, 2023/in News, Product /by Editor

Reading Time: 3 minutes

Habitap, an integrated and customisable smart living management system, announced recently a strategic partnership with JLL to curate a super-app – COMPASS SG, powered by Habitap, to provide a best-in-class smart building experience with a range of smart functionalities for JLL’s clients. As part of the partnership, JLL has already rolled out in one commercial building in Singapore and will progressively implement it in more buildings by the fourth quarter of 2023.

The COMPASS SG app is fully customisable based on each client’s individual needs and allows for a fully integrated, connected tenant experience programme that combines technology, tenant experience and community features. In addition, this app includes a real-time access control management portal that allows tenants to track important building information through a user-friendly, intuitive dashboard.

Various visitor access options are also available to allow tenants to manage their visitors more efficiently. For example, they can register through facial recognition, HID Mobile Access or a QR code sent to them before their visit and or via a kiosk powered by Habitap. Other features include wayfinding, electronic lockers, and car park management tools, all aiming to revolutionise how tenants manage access and security within their properties.

To further streamline building operations, the app provides access to real-time data, giving greater security and control over their facilities. With the app, tenants can also apply for building services such as permits, renovation work, air-con extension and season parking. Circulars, push notifications, and emergency broadcasts can also be sent through the app, ensuring a better reach of information. Furthermore, the smart concierge feature, facility booking, and Building Management System integration feature automate administrative tasks for the clients so they can focus on running their businesses.

Additionally, the community functions of the app enable tenants to easily offer promotions and news to their customers, as well as a more efficient way for users to sign up for upcoming events and redemption of vouchers, therefore allowing for better capability to drive promotions and to engage the community. JLL also has a series of curated activities, focusing on environment, social and wellness that will be broadcasted via this app for tenants to participate.

Commenting on the partnership, Founder and CEO of Habitap, Franklin Tang, said, “We are thrilled to partner with JLL – a trusted global name in the commercial real estate industry. Habitap’s goal has always been focused on helping organisations transform through vision and technology to ultimately enable people to experience a Smart Living lifestyle. Our partnership with JLL reflects this shared commitment and puts us at the forefront of defining the future of smart buildings. With COMPASS SG, JLL’s clients can experience an unparalleled Smart Building experience that promises to seamlessly integrate technology with our lifestyles.”

Echoing Franklin’s sentiments, Executive Director of JLL, Derek Soh said, “We are excited to be working with Habitap, whose commitment to delivering experiential real estate solutions mirrors our own. Our partnership with Habitap is a testament to our dedication to providing the best-in-class, innovative solutions that drive our clients’ experiences to the next level.”

Both Habitap and JLL aim to work together to empower their clients and tenants with technology that is of global standards and eventually roll out COMPASS SG to more properties in Singapore.

JLL Cautions CBDs in Asia Pacific Must Reinvent Themselves to Stay Relevant Post-pandemic

24 June, 2023/in News /by Editor

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Asia Pacific’s central business districts (CBDs) will increasingly need to be reinvented as multi-purpose destinations that cater to shifting demands for office space, greater variables in commuting and travel patterns, and a desire for “experience-based” spaces. This is according to new research on the future of CBDs by global real estate advisor JLL.

Return to office rates are over 70% in Asia Pacific – higher than many parts of Europe and the US – with re-entry rates at pre-pandemic levels in Shanghai, Beijing and Seoul, says JLL. However, a longer-than-expected return to pre-pandemic levels of transit usage and footfall will push CBDs and support real estate and infrastructure to go beyond acting primarily as places of work.

JLL analysis points to value-creation opportunities in Asia Pacific CBDs. They hold immense capacity for change due to their infrastructure, accessibility and stock of underused real estate – all of which underscore their resilience. However, with office vacancy at 14.7% in Asia Pacific, as well as the emergence of vibrant mixed-use neighbourhoods in the region’s largest cities which are attracting a growing share of businesses, residents and investment, there is further impetus for CBDs to reinvent themselves to remain relevant.

“How people perceive and use CBDs has shifted dramatically in the past three years due to the pandemic. To be future-proof, cities in Asia Pacific will need to find ways to reimagine the traditional core area to attract visitors, businesses and investment. For the future CBD to thrive as a mixed-use destination, investors and occupiers will need data-based advice and insights to collaborate strategically and make smart decisions,” said Anthony Couse, Chief Executive Officer, JLL Asia Pacific.

To take advantage of long-term real-estate opportunities, CBDs in Asia Pacific will need a balanced mix of uses, with improved amenities and investment in sustainable design. According to JLL analysis, refurbishing existing buildings is more sustainable than developing new buildings, as renovations can come with carbon impacts of less than 500kg of CO2 per square metre – well below that of new developments, which can be up to three times greater.

According to the JLL report, reinventing CBDs requires partnerships between the private sector and governments. Investors can employ a strategic, long-term mindset toward repositioning and diversifying their portfolios to cater to shifting preferences and reduce exposure to external shocks. Developers should proactively consider locations based on the potential for future growth and proximity to demand, the quality and age of buildings, and the ability to meet regulatory requirements regarding energy efficiency and sustainability.

Finally, governments must anticipate demand changes and provide greater flexibility to developers and investors, including through expanding tax credits to offset the cost of conversion and streamlining the planning process to reduce the lead time for delivery of new products. Notable examples of the private sector and governmental partnerships helping to reinvent CBDs include Singapore’s CBD Incentive Scheme, which provides developers with 25% to 30% increases in developable areas on assets at least 20 years old when converted from office to mixed-use. Likewise, Melbourne’s West Side Place district, which includes pedestrian areas lined with retail and green spaces to break up office-dominated “superblocks” of core business districts, has been successful in attracting footfall and investment.

“Any reinvention of Asia Pacific’s CBDs requires a long-term commitment of investors and developers, plus consistent governmental support. The office will remain core, but for a CBD to genuinely thrive, greater support of leisure and green spaces is a necessity to ensure continued relevance,” said Roddy Allan, Chief Research Officer, JLL Asia Pacific.

Cloud Adoption and AI to Power APAC’s Future Data Centre Market

25 May, 2023/in News, Technology & Softwares /by Editor

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The mass adoption of cloud computing and artificial intelligence (AI) is driving exponential growth for the data centre sector, according to JLL’s new Global Data Centre Outlook. Accounting for 79% of overall demand, hyperscalers (predominantly the global cloud service providers) and edge data centres (smaller facilities located close to the populations and infrastructure they serve) are leading as the fastest-growing segments of the market.

According to JLL, the hyperscale market is expected to grow 20% from 2021 to 2026, as more tech companies look to meet surging demand for data processing and storage requirements. With more than 300 new hyperscale sites in development globally today, that number is expected to surpass 1,000 by the end of 2024 – up from around 500 sites just five years ago.

Data centre uptake in Asia will continue despite economic headwinds, supported by factors including sustained social media usage in China (938 million users) and India (467 million users). According to JLL, the regional hub status of Tokyo, Hong Kong, Singapore, and Sydney remain sound, with a combined 3000MW of total inventory and 765MW under construction. However, enterprises are increasingly considering other hubs and edge markets, including Jakarta and Mumbai, due to growing mobile phone usage.

Christopher Street, Managing Director, Head of Data Centres, Asia Pacific, JLL said: “Just five years ago, campus build sizes were commonly around 50MW. Today, it is not uncommon to see builds of 100MW or more. Asia Pacific currently makes up 26% share of global hyperscale data centre capacity in 2022. In mature markets like Singapore, Hong Kong, Tokyo, Shanghai and Sydney, we are witnessing a huge gap in capacity, and they are being bridged quickly with large new builds. Furthermore, emerging edge markets are receiving strong interest from cloud providers and hyperscalers. Given the region’s influence in the global economy, significant opportunity now exists in this market.”

However, the growth comes with its challenges. Globally, 53% of data centre operators struggle with finding qualified candidates, and 42% face challenges in retaining staff. Along with talent, sustainability is now a top priority for data centre developers, operators and investors, including addressing energy use and emissions. Legislation and self-regulatory initiatives, such as Singapore’s Data Centre Moratorium, are setting standards to mitigate the climate impact of the industry.

Glen Duncan, Data Centre Research Director, Asia Pacific, JLL added: “Sustainability has been a standout theme since the pandemic. Encouragingly, many Asia Pacific businesses have embarked on purpose-driven sustainability programmes to deliver impact on climate action for sustainable real estate. With more operators looking to use innovative solutions for energy efficiency, we are confident that the sector’s green ambitions would further advance. For data centre users, outsourcing all their operations or hiring a third-party specialist can help mitigate labour challenges. Those who react the fastest to respond to the twin challenges of talent and sustainability stand to benefit from cost and operational efficiencies perspectives.”

New JLL Formula Reveals the Secret of High-Performing Workplaces in Asia Pacific

18 March, 2021/in News /by Editorial Staff

Reading Time: 3 minutes

JLL has unveiled the Human Performance Indicator (HPI), a new formula that gives a comprehensive view of how different aspects of the workplace such as spaces, technology and culture combine to elevate human performance. The Asia Pacific HPI results, based on a study of 1,500 employees in five countries across the region, found that ‘high performers’ – meaning those that have access to high impact work environment – thrive in a hybrid work model enabled by a wide range of sophisticated spaces, technology tools and work practices.

Seven in 10 high performers practise flexible work, including flexible hours and work-from-home, in comparison to only 34% of low performers. Low performers are those who felt that they did not have access to a work environment with collaborative spaces, sophisticated technology or an inclusive culture. Technology workers (53%) and young professionals aged 25 to 34 (37%) make up the majority of high performers. As much as high performers were champions of flexible work, they felt that the office was a critical factor to performance. At least eight in 10 (84%) of them said they missed the office during lockdown, as it allowed them access to a range of spaces and technologies for productivity and collaboration.

“The expectations of work today have changed because of the pandemic. Work is no longer where you go, but what you do,” says James Taylor, Head of Corporate Solutions Research, JLL Asia Pacific. “It is becoming clearer that organisations must find ways to enable employees to conduct work effectively and maximise their performance for business success. There is no single way to do so, and our research shows that the new formula for performance is one that incorporates the pivotal role of physical offices, combined with corporate culture and workplace technologies.”

Surveyed employees provided scores on the availability and impact of their workspaces, technology tools and cultural aspects. Using the scores, a final HPI was calculated. The HPI score can vary between 0 and 100 and helps identify working environment and conditions that improve the performance of employees. The research found that only one-third of Asia Pacific workplaces have an environment that elevates employee performance.

One way to improve performance is by increasing access to a wider range of sophisticated workplaces and technologies – the HPI found that the more varied and innovative the spaces and technologies provided, the higher the workplace satisfaction of employees. Acting and thriving as a social hub will be key to the success of the office in the future: 96% of high performers highlighted that they have access to spaces that promote informal interactions among colleagues such as outdoor terraces, game rooms and on-site coffee shops and baristas.

Working remotely can feel very isolating and technology has not been able to fully compensate for the lack of personal contact. This need for a cohesive community is where the physical office can make all the difference. Availability of social spaces creates stronger social bonds among colleagues, which positively influence their collective performance.

“As organisations embrace the future of work, employers should be looking to bring out the best performance in employees. This could be allowing them the flexibility to work in the way that suits them best, designing the ideal setting for creativity and innovation, creating a human work environment that promotes open and caring relationships, and cultivating a sense of community with common purpose and vision. The workplace of the future will need to be employee-centric and offer fulfilment, freedom and choice,” adds Kamya Miglani, Director, Corporate Solutions Research, JLL Asia Pacific.

Other key insights on high performers in Asia Pacific include:

95% of high performers said they were tech ready to work remotely when the world went into lockdown, thanks to flexible work made available to them
98% of high performers agreed that their leadership enabled them to achieve their full potential professionally
At least seven in 10 (70%) high performers have found a confidential space to have a difficult conversation and 61% have a mentor at work

The HPI Asia Pacific results are based on an online study covering Australia, China, India, Japan and Singapore. You can download the ‘Decoding Human Performance’ report here.

A Glimpse Into the Workplace of the Future

6 February, 2016/in Design /by Editorial Staff

Reading Time: 2 minutes

Millward Brown’s Singapore office.

Real estate consultancy JLL recently released a report that revealed a growing number of companies are using the design of their workspaces to express their company culture and values to employees. Rather than the faceless cubicles of the past, today’s offices are being designed to engage workers, drive financial benefits and grow business performance.

“Companies have spent a significant amount of time refining strategies to increase engagement through the efficiency of their workplace and effectiveness of their employees,” says Grant Morrison, Director of Workplace Strategy, Asia Pacific, JLL. “But many are realising they may have been undervaluing the only resource with unlimited potential – their workforce. In response, we’re seeing a trend toward looking at organisational culture and creating workplaces with a personality and expression to match, thus making employees more likely to be engaged when they spend time in the office.

JLL’s report, Fully Engaged, introduces the concept of “workplace expression” as being the final piece of the “3 E’s” of employee engagement. Significant gains have been made over the last two decades in the first two “E’s” – efficiency and effectiveness. Adding the final piece – expression – to the mix can create a dynamic and compelling environment that reconnects employees to their purpose, directs renewed energy and engagement, while driving innovation and productivity to new levels.

The benefits of an engaged workforce and the problems associated with disengagement are well documented. Recent studies peg the cost of disengagement in the U.S. at $450 to 500 billion a year. Conversely, research shows organisations with engaged employees experience almost 150 percent higher earnings per share compared to their competition. Companies that have taken the next step, however, are reaping even more benefits. Those who have actively developed their culture returned more than 500 percent higher revenue and 750 percent higher income.

Research shows organisations with engaged employees experience almost 150 percent higher earnings per share compared to their competition.

Said Morrison, “Culture is intangible and hard to actively measure, yet it’s easy to sense when you walk into an office. Workplace expression shifts the office from being a passive background to an active cultural lever used to shape employee perceptions, motivations and behaviours. Allowing it to become a location where a company’s vision and mission manifest itself can easily transform a place to work into a best place to work.”

Morrison continued, “This is particularly relevant to companies in Asia given that many countries in the region are battling with high attrition rates among staff and a highly competitive environment to recruit the best candidates. Workplace is increasingly a key differentiator.”

For more information, download the ‘Fully Engaged’ report here.