Nine in 10 corporate real estate leaders confident in recovery post-pandemic: JLL

By Valerie Kor / EdgeProp Singapore | September 8, 2020 11:24 AM SGT
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Singapore's central business district (Photo: Pixabay)
SINGAPORE (EDGEPROP) - At least nine in 10 corporate real estate (CRE) leaders in the Asia Pacific are confident that plans to mitigate the impact of Covid-19 will be successful, according to a JLL’s report Optimism in the Face of Crisis. The report is based on the findings of a survey conducted among 200 corporate real estate leaders from the Asia Pacific region.
In their view, working from home will not replace offices. A majority of CRE leaders believe they will maintain or increase total footprint and number of sites in the medium to long term. 76% of them expect moderate or steady rationalisation of real estate portfolios, with those in Australia and Hong Kong focused on steady rationalisation while those in India anticipating massive and accelerated rationalisation.
JLL foresees four implications for commercial real estate in the post-pandemic era. First, health and wellness will be prioritised and will transform the real estate portfolio mix. This will require safe-distancing and the increase of smaller offices or co-working spaces.
Second, there will also be a mix of real estate strategies to achieve the de-densification of office space, which involves a reconfiguration of spaces. Third, technology will be critical in enabling the success of new working models.
Lastly, the increased prevalence of remote working will impact future CRE investments. Leaders will consider active investment in technologies that optimises productivity and collaboration among onsite and remote workforces.
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