Global office leasing fundamentals will receive significant impact from the aftermath of COvid-19 recession and work from home trends with full recovery projected to 2022.
According to the latest Global Office Impact Study released by real estate services firm Cushman & Wakefield, the full recovery timeline is consistent with that which followed the Great Recession.
Researchers and economists analyzed the cyclical and structural changes impacting office markets across the globe with a view of answering the foundational question of- ‘what will become of the office’. The study shows that the office will continue to play an important role in the economy.
Kevin Thorpe, Cushman & Wakefield’s Chief Economist and Global Head of Research said that the research ultimately projects full global office market recovery with every local market following a different path to recovery.
The report shows that global office vacancy will rise from 10.9% pre-crisis (2019 Q4) to 15.6% in 2022 Q2.
However, global office vacancy is expected to return to pre-crisis levels of approximately 11% by 2025 with rents also reaching pre-Covid levels the same year. Full economic and employment recovery is anticipated for Q1, 2022 as demand for office space begins to build up again.
“With this study, we’re looking into an uncertain environment through the lens of evidence, data, and science,” said Rebecca Rockey, Global Head of Forecasting at Cushman & Wakefield.