It states that, as a result of the pandemic, occupiers are reassessing their needs for office space as working from home has been implemented.
As a result, it forecasts rents to come down by nearly 10% this year.
It claimed that Q2 2020 take-up was down by over 20% and vacancy had ticked up by 20 basis points from a low of 5.4% in Q1 2020.
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The report highlights that JLL has estimated a decline of 9% in 2020-22 supply across 15 markets since the start of the year, mostly due to delays in construction because of the health and sanitary measures and material shortages.
Furthermore, development-focused land and redevelopment acquisitions as a share of total office acquisitions, have continued their long-term downward trend.
AEW expects that many office developments will be postponed, downscaled of cancelled over time as investors, developers and lenders come to grips with lower occupational demand.