Commercial rents have taken a beating during the outbreak. Businesses that closed their doors for good have left vacancies that there is no current demand for, and some tenants were outright refusing to pay rent. There was also a lingering question as to whether businesses would return to offices as remote work became the new norm.
But there may be a ray of hope for the office sector. The fear of further outbreaks overseas are prompting some businesses to rethink their stances on offshore operations.
Other nations may have cheaper labour prices, but companies are now concerned with those countries’ inability to effectively manage outbreaks. And that uncertainty is making offshore activities a business continuity risk.
The possibility of these activities returning back on shore is exciting for two reasons. Firstly, bringing jobs back into Australia will help combat unemployment and the recession that has been brought on by the coronavirus. And secondly, a valid reason for businesses to hold onto, or even expand, their office space. Allowing commercial landlords to breathe a sigh of relief for the first time in months.