CBRE's latest Flash Survey of occupiers across EMEA has shown some interesting trends. While the survey covered multiple jurisdictions, the vast majority of respondents came from the UK (37%) and Spain (33%).
2020 is going to be tough
This should come as no surprise to anyone. 67% of respondents expected the second half of 2020 to have a more challenging business environment than the first half. However, this number fell to only 40% in Germany, with respondents showing greater confidence in economy recovery.
71% of respondents expect their revenues to contract in 2020, but this was not reflected in the healthcare and life sciences sectors, bucking the trend with only 45% expecting a downturn.
Cans kicked, belts tightened - but not as much as you might think
Respondents indicated that 41% of expansions, 33% of relocation and 31% of renewals had been put on hold, with 35% reporting cutting their capex spend on fit outs.
What is notable about these figures is that while they are significant, they are minorities. This means that the majority of occupiers are still going ahead with planned moves.
The Future Office
93% of respondents saw remote or home working as a likely long-term shift, with 88% expecting to invest more in technology to support this. However it was not all doom and gloom for the traditional office, with a notable 46% expecting floor plate densities to decrease, which may go some way to mitigate any softening in demand.
Co-working may not be the long-term winner it was once expected to be, with 24% expecting to see an increase in use and 24% expecting to see a decrease. Perhaps the biggest losers are green and WELL buildings, with only 1% showing a preference for these.