- Sustainability: More sophisticated sustainability requirements are applying upward pressure on costs. Occupiers are generally willing to absorb the higher prices in order to meet the demands of their stakeholders.
- Cost drivers: Costs have generally increased over the past year due to the inflationary environment, higher material costs and currency volatility (our guide deals with costs in USD terms). Labor shortages were also an issue for 43% of the cost management leads that we spoke to.
- Localization: Corporates are continuing to deal with unpredictable global economic conditions, a shifting geopolitical landscape and sticky inflation. The industry is adapting to offset these headwinds by localizing supply chains.
- Flight to Quality : The preference for high-quality space is market, country and region agnostic. Corporates continue to upgrade into space that helps to attract and retain the best talent, meet their sustainability objectives and maximize the employee experience.