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The demise of the office may be premature

December 8, 2021

The future of the office and the subsequent impact on real estate investments
Investments
Risque de pandémie

The events of the last 18 months have inevitably focused minds on the future of the office as a working environment of choice. But it’s important to remember that whilst COVID-19 has had an undeniable impact on how we think about using our workspaces, this is neither nothing new nor is it confined to the office.

Real estate can offer attractive returns, good diversification and sometimes cashflow liability matching benefits. It can also help with the journey to net zero carbon.”

Douglas Crawshaw
Global Head of Real Estate Manager Research

Offices, like every other property sector, are continually evolving. Those buildings that best serve occupier needs, whether office, retail or industrial, are those that will continue to be in demand whilst those that don’t either have to adapt or become obsolete.

Location remains fundamental to an investment’s future performance outcomes and its importance should be re-emphasised, especially in the context of climate risks, alongside re-lettability and income quality.

Real estate investors should now take a fresh look at:

  1. The place real estate (especially offices) has within a broader real asset portfolio
  2. Environmental considerations (e.g., in terms of emissions)
  3. How investment managers evaluate the risks and opportunities of buildings being underwritten and acquired, and the approach to active asset management.

The below paper addresses the environmental impact, the occupier and employee needs for the office, how to future proof our workplace and the investor considerations.

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The demise of the office may be premature PDF .3 MB
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