Research - DECEMBER 30, 2021

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Race for quality office assets in major cities spurred by ESG and limited supply

by Released

Office assets in major metropolitan markets, such as London, New York, Tokyo and Sydney, have retained their allure and will be in high demand next year, according to Colliers in its 2022 Global Investor Outlook.

Core and core-plus office spaces are the top global strategy picks, with 60 percent of investors stating these as their investment preference for 2022, a 50 percent increase from last year.

Their appeal not only stems from the realization that office demand is here to stay, particularly in cities supported by strong transport infrastructure and high amenity values, but also the ease of large-scale capital deployment that office assets represent. The rising cost of construction, viewed by four in five (81 percent) investors as a pain point, limiting new builds, renovations, and retrofit projects amplify the race to core. Investors expect core office values to increase by up to or more than 10 percent over the next 12 months due to the stark imbalance b

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