CBRE Asia Pacific Research conducted a flash survey of over 250 occupier clients, 94 of which are from Mainland China, from 23 March to 5 April 2020 to gauge the industry response to the COVID-19 outbreak.
Slightly over 70% of respondents expect business environment in China to improve or stable in 2H 2020; most optimistic compared to the rest of Apac, and 53% of respondents still expect revenue to grow or flat in 2020; real estate and tech sectors are most optimistic.
Over 82% of respondents will delay in leasing decisions, mainly on site visits and renewal plans, less occupiers in mainland China see expansion plans affected, compared to Apac counterparts.
Slightly over 50% of respondents have commenced discussions with landlords about direct rental reductions; they also discussed rental holiday, longer rent free and fit-out allowance
Over 90% of respondents have adopted remote/home working since the COVID-19 outbreak. This is likely to have a lasting impact on long-term occupier strategy, leading to more investment in technology to support remote working; more intensive adoption of flexible working; and a higher preference for buildings with environmental and wellness features.