The 'T-shaped' layout, with desks arranged according to rank such as department head, team leader, and team member, was the standard of traditional office spaces. However, due to the COVID-19 pandemic, work styles have diversified, and horizontal relationships have become important, leading to changes in office spaces. In recent years, many corporations have eliminated assigned seating for employees and begun reflecting their corporate identity in the office layout.
Global cosmetic brand A had a large office in Korea with a total area of 4,826 square meters (about 1,460 pyeong), but the boundaries between work areas and storage areas for cosmetic samples were unclear, and despite frequent collaboration between departments, there was a lack of space for communication. Although there were global office guidelines, they did not fit well with Korea's work environment and culture. Ultimately, Company A requested assistance from the Project and Development Services (PDS) team at Cushman & Wakefield.
PDS is a comprehensive service that supports everything from office location selection to design and operational management, and has been operating in Korea since 2017. The Cushman PDS team created storage spaces considering sample storage flow in Company A's office to implement a 'clean desk' environment and added open collaboration spaces such as casual meeting rooms. Additionally, they developed a reception area that reflects the brand identity, redesigning 'the face of the company.' After the renovation, employee satisfaction with the office improved significantly from an existing score of 4.7 (out of 10) to 8.17.
Cushman & Wakefield, a global commercial real estate services firm, operates in 60 countries worldwide, providing comprehensive real estate services including sales, leasing, management, valuation, and consulting. The PDS team can be described as a team that encapsulates the know-how accumulated over Cushman's more than 100 years of experience. ChosunBiz conducted a written interview with Tom Gibson, the Asia-Pacific (APAC) head of Cushman PDS.
What exactly does the PDS team do?
The team supports office development and transfer projects comprehensively from the initial stage to completion. If a corporation is considering relocating their office, they are involved in all processes from site selection to office design, construction, post-completion relocation activities, and management after the move.
What are the strengths of Cushman PDS?
The strengths of Cushman's PDS services are so diverse that it's difficult to describe them with just one strength. When starting an office project, personnel with 'soft skills' who excel in gathering opinions from various stakeholders are engaged, and during the latter half of the construction, specialists strong in technology, such as architecture, are deployed. The harmony of teams with abilities suited to each process is a major advantage of Cushman PDS.
Moreover, since Cushman covers all aspects of commercial real estate, the PDS service can naturally connect with other services. In fact, it can provide a 'one-stop solution' by organically linking with Cushman's various services, such as capital markets, leasing advisory, and tenant representation.
What are the characteristics of the APAC PDS market?
Growth in PDS within alternative assets has been remarkable. While PDS services have primarily focused on corporate office spaces, there has been an increasing demand for PDS services in various alternative asset sectors recently in the APAC region, including hospitality, data centers, life sciences, logistics, industry, healthcare, and education.
Especially in the APAC region, a highly educated workforce from global companies is concentrated, leading technological innovations. Thanks to this environment, there has been a substantial influx of real estate investment funds, and the Cushman PDS team is reaping those benefits. Since 2016, the scale of the PDS business in this region has grown nearly threefold.
What are the most prominent areas among alternative assets?
Data centers have emerged as the fastest-growing asset class in the APAC region, with a continuous influx of funds from global investment firms. As hyperscalers such as Amazon Web Services (AWS), Google, and Microsoft require large facilities in the APAC region, the growth of the data center market is accelerating.
Cushman PDS is responsible for the entire process of data center development and operation, including land acquisition, asset leasing, project management, and facility management, thereby securing a leading position in the APAC region. Currently, it is engaged in several data center projects across mature markets such as Korea and Japan, as well as in Southeast Asia, including Indonesia, Malaysia, and Singapore.
What are the differences between data centers and general office PDS?
While managing commercial real estate projects is similar for both data centers and general offices, the approaches differ.
Data centers are spaces where servers and computers must operate continuously, thus during the design and construction process, complex technical elements such as electricity and mechanisms must be meticulously considered. It is also necessary to evaluate in advance whether such technology-centered facilities can operate reliably while using energy efficiently. This requires a high level of expertise and understanding of technology.
In contrast, general office projects are technically relatively simple, but the ability to communicate smoothly with various stakeholders is crucial. This is because office interiors must consider user experience, organizational culture, and work methods.
How do you view the growth potential of the Korean market?
The Korean market has recorded about threefold growth since the launch of services, similar to the average growth rate in the Asia-Pacific (APAC) region. Cushman has secured core clients, who are tenants, based on its strong workplace strategy consulting capabilities and continues to discover new projects in the alternative asset sector.
The Korean branch is establishing a new PDS roadmap this year and is intensifying its efforts to prepare strategies for further growth. The PDS team in Korea, which started with around six members, has grown more than fivefold in terms of staffing in just eight years. Recently, they are also actively working to secure top talent and attract new clients. Through this, they expect to see the 'flywheel effect,' a virtuous cycle that drives continuous growth and value creation.