The COVID-19 crisis is very unlikely to end up being a watershed moment for the office sector, which could outperform in the medium term, according to Nick Clayton, the investment director at Astarte Capital Partners.
In Clayton’s view, there are a number of reasons why traditional offices will remain in strong demand, including the need for close and instant collaboration, ease of access to information and a requirement for greater space to accommodate social distancing rules. At the same time, most major office markets entered the crisis with low vacancy and relatively low supply pipelines. As these pipelines will now contract, the office sector may well experience a less volatile office rent market than it has historically dealt with in past recessions, giving investors a chance to make strong returns from the sector.
Office workers within certain demographic groups place a high value on being able to separate their work and home lives says Clayton, providing fur
