As we have argued in our Global Property Focus, we think that some of the increase in remote working seen this year will become a permanent feature of working practices in office-based sectors in the coming years. In Europe, we estimate that this will have a larger impact on demand for space in the German and Italian markets than in Spain or France, where the outlook for office-based employment is stronger. Even so, across all these markets our estimates suggest that, beyond the immediate hit from COVID, prime office rents will continue to fall in the coming years. This poses a significant risk to our current forecast that rents will start to recover in 2021.
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