CBRE Asia Pacific Research conducted a flash survey of over 250 occupier clients from 23 March to 5 April 2020 to gauge the industry response to the COVID-19 outbreak.
Although 51% of respondents expect the business environment to deteriorate further in H2 2020, 24% of those surveyed still expect to see full-year revenue growth, with tech firms particularly upbeat.
Two-thirds of respondents have delayed leasing decisions since the outbreak, with many firms forced to postpone site visits and put expansion plans/new office set ups on hold. However, one-third of respondents stated that the outbreak had not affected their leasing decisions at all.
Slightly over 50% of respondents have commenced discussions with landlords about relief measures such as direct rent reductions, rent holidays, longer rent free periods and fit-out allowances.
Nearly 90% of respondents have adopted remote/home working since the COVID-19 outbreak. This is likely to have a lasting impact on long-term occupier strategy, leading to more investment in technology to support remote working; more intensive adoption of flexible working; and a higher preference for buildings with environmental and wellness features.