It remains to be seen whether remote working will be permanent and reduce future occupier demand. Surveys show that people want flexibility but only a small amount wish to work entirely from home. Satisfaction varies across different age groups, and factors such as length of commute and space at home impact the experience. Companies will evaluate which model works best for them and offer flexibility accordingly. Cost-saving will potentially be reduced by higher space requirements per employee and less hot desking for hygiene reasons. Given the long lease structures and that working from home is still in a 'testing' phase, it will take time to impact the market, and near-term trends might be dominated by a weaker economy. We prefer specialised office Reits with solid balance sheets and a clear focus positioned in attractive niches - for example, laboratory space or the undersupplied B-grade market in Japan.

Excerpt taken from CityWire (pg.20-21)