National office markets bounce back quicker than expected
National office markets have bounced back more quickly than many expected in response to the pandemic, according to valuer Herron Todd White (HTW).
This has been evidenced by continued yield compression across many regions over the past 12 months, largely on account of the low interest rate environment.
HTW said that while the recovery is slightly different in each state and location, there has been a general sense of increased optimism pervading office markets nationally.
This has been fuelled by a push for employees to return to work, if not to a five-day working week, then at least to a three-in-five-day working week.
According to HTW, successful office property investment will hinge on the ability of businesses to attract workers back to the central workplace.
Tenants are demanding quality office space and a flight-to-quality is a very real trend. Workplaces must create a workplace experience and older buildings need substantial upgrades if they are to achieve this, HTW said.