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The pandemic and safe distancing measures also saw many occupiers progressively pivoting to remote working, with employees working from home or multiple locations.
The effects of the Covid-19 pandemic is still not that apparent in the first quarter of 2020, according to the latest report by Colliers International.
That’s because the average monthly rents for CBD Grade A offices remained flat quarter-on-quarter at $10.09 per sq ft.
However, as the global disruption continues, key effects such as depressed rents and increased vacancy could lead to slower demand.
This comes as many major corporate real estate stakeholders, which are based in Europe and the USA, have shifted their focus to dealing with challenges surrounding their employees’ health and wellness, business continuity and risk mitigation, instead of business expansion plans.
The pandemic and safe distancing measures also saw many occupiers progressively pivoting to remote working, with employees working from home or multiple locations.
“We foresee the COVID-19 outbreak will profoundly change the way people work — even as the pandemic spread slows down or in a post-COVID-19 world — and could fast-track the adoption of new technologies and Flex-and-Core™ strategies, and increase the demand for wellness-certified buildings,” said Colliers.
It noted that occupiers should continue investing in technology like cloud storage services and seamless web conferencing.
“Amid shifting market dynamics and a move into a more tenant-favourable environment, occupiers should seek advantage from the favourable conditions and analyse their portfolios, as well as review key sites transactions and projects planned within the next 18 to 36 months,” it said.
It added that occupiers should develop contingency plans, which include rationalisation of space requirements and workplace density, decentralising or adopting a split-office business continuity strategy and considering a Flex-and-Core™ strategy.
“Safe distancing will be a factor in the occupier space as a key theme going forward, as business continuity strategies evolve,” said Colliers.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg