Will commercial real estate opportunities drive business progress?
26 Feb 20244 min read
Summary
- The article outlines how commercial real-estate (CRE) in Asia is increasingly positioned as a strategic driver of business progress rather than simply a cost centre. CRE assets are being leveraged to support evolving corporate needs in agility, talent attraction and customer experience.
- It highlights the growing relevance of specialised property types—such as high-quality offices, logistics parks and mixed-use campus models—that align with digital supply-chains, hybrid work models and omni-channel retail strategies. These assets are becoming core to companies’ competitive infrastructure.
- Finally, the piece notes that investors and businesses must adapt to the CRE shift by focusing on operational excellence, sustainability credentials and location optimization. Success will increasingly depend on how well real-estate supports broader enterprise goals rather than being treated in isolation.
Infrastructure investments, especially commercial real estate, ramps business expansion and management in Asia. These assets provide physical access to Business-to-Business and Business-to-Consumer means of doing business operations. Therefore, catering to a wider range of clients.
Moreover, the said initiative provides employment as businesses require a workforce. It’s also a way of entering or strengthening presence on a particular market.
One scenario is DHL’s 350 million euros-worth investment in Southeast Asia. They targeted their efforts towards the development of their warehouse capacity in regards to increasing their workforce to 3000.
In APAC, Private capital is expected to remain a driving force in the Asia-Pacific commercial real estate market. Global property advisory Knight Frank depicted this in its "Horizon: Asia-Pacific Tomorrow report."
Said report showcased private capital investment volume for high-net-worth individuals (HNWIs) in commercial real estate. They are expected to be on track to be the highest in five years. Wherein, the current market value is at USD 4.3 billion in 2023.
On HNWIs’ intentional initiatives
Certain HNWIs investors have been proactive in commercial real estate, raising their investment exposure in 2023, with decision-making guided by the pursuit of capital preservation rather than chasing yields.
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