The European office market could still emerge from the coronavirus crisis in a relatively strong position compared to other real estate markets, according to UBS-AM Real Estate and Private Markets.
In its latest research paper, which looks at the impact of COVID-19 on the office sector, the manager has said that it remains hopeful that we are witnessing a V-shaped downturn that will allow most office occupiers to “weather the storm and keep the majority of their staff on the payroll”.
If this turns out to be the case, UBS says that that there are a number of reasons why this economic downturn should not be as damaging as the dot com crash or the GFC. “Previous downturns were actually triggered by endemic issues within sectors which were prominent office occupiers (finance and technology companies),” says the report. “This [slowdown] however is an external challenge, and European governments have already taken more aggressive action to combat and protect jobs
