The chief executive
of one of the UK’s largest property companies has warned that demand for
secondary office stock will plummet as a result of the Covid-19
Speaking to Property Week, Landsec’s
chief executive Mark Allan said that demand for prime offices with
the capacity to offer better air quality, outdoor space and more
agile workspaces would rise, leading to less demand for secondary stock, which
would see higher vacancy rates and more redevelopment activity.
older, secondary office stock will see more exposure [to the effects of
coronavirus], and obsolescence is going to be a more rapid journey
than it might have been before,” he said.
coronavirus will] really accelerate existing structural trends. What might have
taken five years could easily now play out in 12 months.”
Allan remained bullish on the prospects for the prime London office market,
predicting demand for high-quality space would continue to grow.
delivered its final year results this week, showing the value of its property
portfolio had taken a £1.2bn hit.