The deadly and highly contagious Covid-19 disease has changed the way millions of office workers do their jobs and live their lives. Now, firms are looking to cut their real estate footprint, and investment institutions forecast that demand for office space might fall up to 35% exacerbated by rising insolvencies. The knock on effects could prove disastrous – unless the government takes action.
“Governments have intervened to support employees and businesses including allowing tenants to withhold rental payments. But so far there has been no discussion of the financial help that will be needed if a health crisis turns into a financial catastrophe for owners, investors, and lenders. Now is the time to start planning for that.”Jonathan Harris CBE, FRICS
The next financial crisis?
Covid-19’s office industrial revolution