Post-pandemic, connectivity and compact homes ensure quality offices and malls maintain relevance

OFFICE buildings in many cities are struggling. As remote working gets entrenched, demand for office space has shrunk.

Singapore-listed Manulife US Reit , which owns office buildings in the United States, recorded a drop in portfolio valuation of about 10.9 per cent at end-2022 versus end-2021. The valuation of the trust’s Figueroa in Los Angeles, which is affected by high vacancy, fell by 33.1 per cent.

There are fears that rising vacancy rates in office buildings in the US, coupled with high interest rates, could lead to some office landlords collapsing, thereby potentially sparking a financial crisis.