This Cushman & Wakefield study is the first in a four-part series that provides a new perspective on COVID-19’s impact on the commercial real estate (CRE) industry and the future of the office spaces. COVID-19 is disrupting the economy, accelerating shifts and creating structural changes that will persist for years. Several forces are at play—from office-using job losses, to higher vacancy and downward pressure on rental rates, to an increase in the share of employees who will now work from home either permanently or more regularly.
Key findings include:
Global office vacancy will rise from 10.9% pre-crisis (2019 Q4) to 15.6% in 2022 Q2.
Global office vacancy returns to pre-crisis levels of approximately 11% by 2025
Rents bottom in 2022 Q1 and begin appreciating from that point forward, returning to pre-crisis peak levels in 2025.