Consulting company Cushman & Wakefield Georgia published a report. According to the publication, the office market will likely see greater shifts in 2021 than was apparent in 2020. “First consideration is the extent to which COVID-19 has affected business center tenants. How many of these will be back to resume operations once the crisis is over?
Another consideration has to do with space uptake. Many tenants have started to realize that having 100% of the staff in the office at all times is not necessarily a recipe for heightened performance. A number of companies on the market have already raised the issue of reducing the rented space. Others have shifted completely to the coworking options. It is expected that market-wide vacancy in office buildings will rise further while demand on coworking spaces will increase”, the research reads.
Moreover, Cushman & Wakefield Georgia considers that Market-wide rents will continue to drop, given the lack of demand. In the last couple of years, B+ office spaces have been providing a robust competition to A class spaces. With similar amenities, good locations, and about 2/3 of the asking rent compared to the A-class offices, B+ offices have been gradually retaking a higher share of the tenant market. This has put downward pressure on the A-Class rents; a further downward pressure on these is expected”, the report reads.
Moreover, Cushman & Wakefield Georgia considers that Market-wide rents will continue to drop, given the lack of demand. In the last couple of years, B+ office spaces have been providing a robust competition to A class spaces. With similar amenities, good locations, and about 2/3 of the asking rent compared to the A-class offices, B+ offices have been gradually retaking a higher share of the tenant market. This has put downward pressure on the A-Class rents; a further downward pressure on these is expected”, the report reads.
