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A survey found that 60 percent of chief executives and chief financial officers believe the rise of AI has made it impossible to know how much office space they will need in two years’ time, prompting them to opt for flexible, capital-light models.
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The research was conducted by International Workplace Group, the world’s largest platform for work with brands including Regus and Spaces.
The research revealed that 88 percent of chief executives say that the rise of AI means organisations need flexibility when it comes to their workspace or real estate solutions, as rapid technological change makes it difficult to anticipate future space needs.
Moreover, 42 percent said it enables remote working and reduces the need for a central office, 39 percent said it encourages decentralised or flexible office models, and 37 percent said it expands access to global and distributed talent.
In Hong Kong, this shift is further accelerated by cost pressures and strong employee demand for flexible working. With Central Grade A rents projected to rise 10 to 15 percent in 2026, local firms are growing far more selective with their core footprint, and decentralising to outer submarkets to maintain cost control.
Nearly all (99.8 percent) of chief executives and chief financial officers say their organization is actively moving real estate costs from fixed to more variable spend, with 99 percent citing cost reduction as a key location driver.
“AI is accelerating the pace of change for every business, and companies that want to succeed need workplace strategies that allow them to scale up or down quickly, reduce unnecessary fixed costs and give their people access to high-quality workspace wherever they need it,” said Christian Schmitz, chief executive of International Workplace.
