Next-Generation Telecom, Media and Technology Companies Expanding Footprint in Asia

December 13, 20163:55 am1561 views

The Technology, Media, and Telecom (TMT) sector continues to experience rapid growth in Asia Pacific, as measured by office leasing activities across the region. According to CBRE’s Asia Pacific TMT Sector Trends 2016 report, expansionary strategies are driving leasing activities across major gateway cities in the region.

Significantly, CBRE Research shows that newer international TMT firms remain active in acquiring office space, but domestic technology companies are becoming prominent occupiers in Asia Pacific as measured by transaction value and volume.

TMT Leasing Activity in Q2 2016 and Q3 2016


Note: Based on 112 leasing deals completed in the major cities in Asia Pacific under study. Source: CBRE Research, December 2016.

Sustained demand for office space corresponds with both the strong financial performances and the increased headcount by the newer subsectors of the TMT industry in Asia Pacific. CBRE Research estimates that between 2008 and 2015, revenues at new TMT companies—founded after 1996—increased by 116%, compared with 30% at established firms.

During the same time period, TMT headcount in Asia Pacific rose by 30%; 65% of this total increase is attributable to TMT firms operating in the social media, cloud computing, big data and ecommerce subsectors.

The addressable market for TMT solutions and services in Asia Pacific continues to fuel demand for both office space and skilled headcount. The growth of Internet users and mobile devices continues to provide diverse opportunities for both global and domestic TMT firms.

“For many TMT firms operating in Asia Pacific, favourable demographic factors are driving both robust business performance and serving as a catalyst for aggressive expansion strategies,’ says Manish Kashyap, Regional Managing Director, Head of Advisory and Transaction Services, CBRE Asia Pacific.

“This backdrop is translating into strong office leasing demand across major gateway cities regionally, such as Beijing, Singapore and Sydney, with increased attention focused on locations and workspaces that foster the collaboration necessary for the TMT sector.”

For companies operating in the TMT sector regionally, innovation and creativity remain the core competitive advantage. According to TMT firms surveyed for the report, workplace strategies are increasingly being deployed across Asia Pacific as a talent attraction and retention strategy.

Consistent with global recruitment trends, attracting talent remains challenging for TMT firms in Asia Pacific. To combat recruitment and retention challenges, TMT firms in Asia Pacific are increasingly viewing modern workplaces and amenities as a differentiator and creative catalyst, and are designing spaces that promote collaboration.

“An awareness that talent and recruitment plays a core role in a company’s ability to innovate is reflected in growth of workplace strategies,” says Dr Henry Chin, Head of Research, CBRE Asia Pacific.

“More recently, Asia Pacific-based TMT firms are embracing workplace innovation to compete with international companies. Strategies including activity-based working and co-working spaces are transitioning from niche to mainstream. This trend clearly illustrates the currency placed on the office environment by TMT firms and illustrative of the fact, that Asia Pacific corporations are catching up to global tech peers on workplace strategy and design.”

Amenities and wellness services are also an important consideration for TMT occupiers in Asia Pacific. Gyms, game rooms and cafeterias with free food and beverage services are seen as more common human capital strategies in a competitive talent market.

Start-ups and smaller TMT firms regionally, many of which do not have the capital and capacity to undertake sizable workplace projects, are opting to lease space in areas served by public transport and in proximity to public services. Capital constraints and the desire for collaborative working environment are also driving the rapid growth of co-working spaces amongst the Asia Pacific TMT sector.

According to CBRE Research, co-working spaces for TMT start-ups are now more frequently located in core locations in gateway cities, demonstrating that landlords are increasingly catering to the sector when designing and fitting out offices.


Read more HR news & articles on HR in Asia


(Visited 1 times, 1 visits today)