Global office demand could drop by between 10 and 20 percent in the long run as companies continue to grapple with the implications of hybrid work, Barclays analyst Lea Overby told CNBC this week.
The sector has held up so well (relatively speaking) thus far because of overwhelmingly long lease terms. But "if a tenant was deciding to downsize after COVID, really now would be probably the first time they could start thinking about getting out of these leases," Overby told CNBC.
Noting that "technology has really come a long way" over the last two years, she added that "it makes it quite feasible that companies that want to trim costs, that they may look toward more hybrid working going forward."
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