Office Market Outlook

The onset of covid-19 catapulted sectors all over the world into new ways of working and the ‘death of the office’ has been a commonly heard phrase in discussions about the ‘future of work’. 

However, after a challenging period of uncertainty for office landlords over the past two years, organisations have now had time to analyse the impact of the pandemic on their workforce – and it has become clear that while we are redefining how we use offices, their role as the cultural heart of an organisation is more important than ever. 

“While we are redefining how we use offices, their role as the cultural heart of an organisation is more important than ever”.

Quality office assets make up over half of the Oyster portfolio, giving us deep market intelligence into the office sector. Currently, 94.6% of the Oyster office portfolio is occupied, with the majority of tenants comprising government and state-owned enterprises, listed entities and the head offices of large, household name retail brands. 

We are seeing enduring demand for well-located, efficiently operating buildings, particularly those in proximity to public transport links and with quality on-site amenities like food and beverage offerings, end-of-trip facilities and on-site gyms. 

The performance of our quality office portfolio remains consistent with pre-pandemic times and gives us strong conviction on the future of this asset class. At the same time, it also demands innovation to maximise the opportunities that this ‘new normal’ presents. 

From SME’s through to large multinationals, organisations are continuing to seek and sign long term office leases in Oyster properties; however, the way they use this space is changing as they maximise technology gains made during lockdown periods and embrace flexible working formats. 

As a landlord and a fund manager, our focus is on being responsive to this environment by supporting our tenants to create healthy, modern workspaces that suit new organisational and operation structures, foster connectivity and attract great talent.