Quiet apocalypse of office property

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Office valuations have barely budged since the pandemic despite many employees continuing to work from home.

An unexpected consequence of Covid-19 was that many of us worked from home, with almost as many wondering why we hadn’t done this before.

Why hadn’t we? We had the technology, we had the means. What we were lacking was the business buy-in. Lockdowns forced this, and in many instances it worked fine.

Going on three years later, a consequence of this is that around a quarter of Sandton office properties are now standing vacant. This is not unique to SA. It reflects all around the world, from London to New York.

In fact, if we look to Kastle’s Back to Work Barometer (a US-based weekly occupancy report from a supply of access systems to offices), it recovered steadily to around 50% and then flatlined. It is currently at 48.5%.

While a 48.5% occupancy makes Sandton look good, this is not comparing like with like.

Read the full article on Money Web here.

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