Office evolving in a post-COVID world

Investors should embrace a new way of thinking about the asset class, particularly given the turbocharged work-from-home evolution prompted by COVID-19. To make sense of these current themes around city exodus and softer demand for office space, it is important to consider the segment in terms of the pre- versus the post-vaccine world.

In the immediate term, we believe many of the companies in central business districts across Australia are unlikely to require staff back in the office full-time until a vaccine is available. Post-vaccine we expect to see a shift out of the cities and offices, driven by the use of available technology, increased productivity and efficiency gains, resulting in some office space hand back.

But we don’t think it will be the start of a long-term downward trend, and there are a couple of key reasons for this. In short, the office market is far from dead and we have a similar view on the residential property market.

In the following video, I discuss these reasons and further explain why we still see opportunity in both office and residential property in 2021 and beyond.

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