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OFFICE |
EXPECTED
Hybrid working is the new norm
- The year will see greater adoption of hybrid working with clearer policies and rules
- Most employees will remain office-based staff under hybrid working models
Steady rebound in leasing activity
- CBRE has revised up its office leasing forecast to 10-15% y-o-y due to stronger demand in North Asia
- H1 2021 saw the resumption of some expansionary demand, largely driven by domestic tech and financial firms
- Supply pressure will continue in H2 2021
- Higher availability will create more occupier choice for flight-to-quality and/or decentralisation
UNEXPECTED
Slow return to the office
- A second wave of COVID-19 infections has caused many markets to reintroduce lockdowns and work-from-home mandates
- The dynamic schedule of return to office plan has led to a slow and inconsistent improvement in office utilisation
- A broader recovery in leasing activity is likely to occur in 2022
Weaker than expected rental recovery
- Under half of regional office markets revised down their rents in 2021 although the full-year decline will be milder than last year
- The rental recovery will take longer than expected
- Most office markets will continue to favour tenants until 2023
