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PETALING JAYA: As the world conducts the largest work-from-home experiment, the disappearance of the office may still be an unlikely result.
Office activity for April has slowed in the Asia-Pacific with international business occupants postponing lease agreements as the pandemic disrupts the supply chain and corporate cash flow, real estate consultancy Knight Frank said.
Decision-making delays highlight the global uncertainty unleashed by Covid-19 and the sheer number of regional real estate, its April 2020 Asia-Pacific Market Bulletin: Covid-19 and its impact on real estate , said.
The report says 11 of the 15 tracked office markets recorded a drop in leasing activity. Manila, Guangzhou, Shenzhen and Hong Kong were the only four markets that registered stable leasing activity.
In Malaysia, director of corporate services Teh Young Khean said the Movement Control Order (MCO) has accelerated the use of technology.
“We hope that companies will take this opportunity to evaluate and analyze what kind of work or function can be done remotely,” he said.
This also depends on the business and corporate culture, as certain functions require a “highly secure environment” to be carried out. Other organizations offer flexible hours as an incentive, but rarely adopt a 100% work-from-home agreement, Teh said.
Asia Pacific Head of Commercial Services and Business Agency Tim Armstrong said: “The need to conserve cash and reduce capital spending is inevitably holding back corporate real estate decisions, such as strategic relocations or equipment projects that require disbursement. significant capital. “
Armstrong expects the occupants to “pause rather than cancel” such activities.
We are witnessing “constant demand” from food retail, telecommunications, online education and some manufacturing companies in some markets.
He said that South Korea and China are seeing an increase in activity in the past two weeks. The e-commerce logistics sector remains active in southern China. Demand for offices in Taiwan continues to outpace supply, and a trend towards quality flight indicates that rents can be expected to continue to grow.
In certain markets, what office workers will return may not be the same as what they left behind. Put it in social distancing. Neil McLocklin, Head of Strategic Consulting, said employees would need to make sure it is “a safe environment.”
“This will mean that we will return to a very different office, with perhaps any other desk vacant to allow for social estrangement and very different behaviors,” he said.
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