40 Per Cent of Office Occupiers Concerned Over Quality Space By 2028
Leasing activity already reflects this shift, with 41 per cent of office leasing during 2025 and the first half of 2026 taking place in investment grade assets. In core micro markets 46 per cent of leasing transactions were concentrated in investment grade buildings, while such assets accounted for 57 per cent of new completions in the period. The report said that almost half of respondents prefer core or established micro markets for new offices, and that a further 25 per cent prefer a combination of core and non core locations.
CBRE noted that location decisions continue to favour established micro markets because mature infrastructure, deep talent catchments and strong multimodal connectivity exert greater influence than pure cost advantages. The survey also indicated that occupiers should plan office moves and expansion well ahead of time as availability of high quality space in core markets remains constrained. The firm recommended that companies should plan relocation and expansion requirements in advance to ensure workplace strategies align with growth plans.
The definition of a preferred workplace is widening beyond the physical quality of an office to include flexible workspace options, commute access and AI enabled infrastructure as elements of future strategies. For landlords and developers the report recommended prioritising high quality assets and improving connectivity, while investors could focus on upgrading ageing buildings to meet growing preference for better quality workplaces. It also suggested developing quality office space in select Tier two cities to capture emerging occupier demand.