Share of remote work key to global office performance

The wide divergence in global office market performance to-date has been driven by significant differences in the return to office and the impact that has had on occupiers’ leasing decisions. US markets have been the major losers, while those in Asia-Pacific stand out at the other end of the spectrum, owing to differences in occupation shares, average home sizes and the average age of the office stock. With those factors fixed for at least the next 5-10 years, we don’t expect any major narrowing in regional differentials. Accordingly, US offices ultimately face a much larger structural demand fall (and therefore, capital value fall) than other major office markets.