Asia Pacific’s office sector offers compelling opportunities for value-added investments, according to Knight Frank’s latest outlook report for the region, Charting New Horizons: 25 Trends Shaping 2025. The report identifies 25 key developments across sectors trends and trends across sectors and markets.

The report shows office sector investment volume rose 16 percent to reach US$59.5 billion in 2024, driving the region’s real estate market in 2024. In addition, 45 percent of all office transactions earmarked for redevelopment or renovation in 2024 are intended for office or mixed-use development. The issue of building obsolescence gained prevalence this past year, as grade B and lower-tier buildings face increasing challenges in leasing due to a growing “flight-to-quality” trend among corporate occupiers. A major draw of office assets in Asia Pacific is the high occupancy rate compared with western counterparts. Utilisation rates average 80 percent in Asia