Growthpoint says almost 20% of its office space is empty
Growthpoint Properties, a bellwether of SA’s commercial real estate market, gave a cautious outlook about the office market after pandemic-induced lockdowns sent millions of workers home and left 20% of its office space empty.
Landlords are suffering one of their worst downturns in generations, upended by the pandemic-induced lockdowns that forced tenants to impose hybrid work models that may persist beyond the post-Covid-19 world. Growthpoint continues to feel the pinch of Covid-19. The commercial property giant says its office vacancies increased to 20% during its full year as the work from home trend took a firmer grip on the market. Alishia Seckam spoke to CEO Norbert Sasse about the performance.
FNB property strategist John Loos said lockdown restrictions didn’t change the direction of the longer-term trend towards an increase in remote work. “These are tough times for real-estate companies and their success is very dependent on the operating environment. The future success of Growthpoint depends on the pace of improvement in the operating environment, which is essentially about a more vaccinated world with greater freedom to move around and associate and work,” said Craig Pheiffer, chief investment strategist at Absa Stockbrokers and Portfolio Management.
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