Key Highlights
Unchecked older buildings face existential rental declines. A looming oversupply of high-quality office space and the accelerating flight-to-quality trend will render older buildings obsolete without urgent action.
Rent discounts alone cannot compete in the amenity arms race. Tenants now prioritise modern, ESG-aligned, and well-amenitised spaces on top of rent incentives. Offices are no longer just workplaces but critical tools for talent attraction and employee retention.
Strategic retrofits to safeguard asset value. Thoughtful interventions can increase tenant satisfaction, drive leasing demand, improve operational efficiency and property performance, and preserve property value.
Energy efficiency initiatives are easy wins. There are numerous opportunities to enhance cash flow and operational efficiency through cost-effective interventions and light retrofits, providing quick payback and high returns.
The time to act is now. Strategic investments could reverse underperformance and protect asset value through improved operational efficiency, occupancy, and financial performance, and position assets to capitalise on market upswings and avoid obsolescence.