In a July 27 report, Morgan Stanley says office rentals across Asia declined 2–13% in 1H2020 owing to weaker demand due to negative GDP and higher unemployment but excluding the impact of working from home (WFH).

With WFH panning out relatively well across Asia, Morgan Stanley expects big tenants such as financial institutions and tech players with well-established infrastructure to return 10% of their existing office space to landlords over the next three years.

Most office leases are for 3–5 years so the impact of WFH is likely to be felt over time rather than this year or next. Companies may augment their smaller offices with flexible space provided by companies such as WeWork, the report suggests.

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