A new study by global real estate services firm, Cushman & Wakefield, says that the world's office sector will start to recover by 2022.
In its first Global Office Impact Study, the real estate firm said it projected that the world’s office leasing fundamentals will be significantly impacted by the COVID-19 recession and the work-from-home trend for the next few years but would fully recover in 2-3 years.
The full recovery timeline is consistent with what was observed during the Great Recession, according to the study. But it will be at a slight lag due to the work-from-home trend.
The report was developed by the firm’s newly organised Global Think Tank, a team of senior researchers and economists from around the world.
The study analysed the cyclical and structural changes impacting the global office market and the implications for recovery.
Key findings from the 2020 Global Office Impact Study are concentrated on the full economic and employment recovery anticipated for Q1, 2022, and the corresponding demand for office space as vacancies begin trending downwards and rental rates begin appreciating.
By 2025, global office vacancy is anticipated to return to pre-crisis levels of approximately 11 per cent, with rents returning to pre-crisis peak levels.
The 2020 Global Office Impact Study is the first of a four-part series, which will provide a look into the future of the office, and the role it will play in a post-pandemic environment.