CMBS: European Office Sector and the Impact of Flexible Working

This commentary looks at the European office sector and the impact on offices in CMBS following the challenges of the Coronavirus Disease (COVID-19) pandemic and evolving trends for flexible working patterns.

“Although the reported fall in office take-up figures and the increase in vacancy rates suggest a downward trend in the market, the reported numbers are largely explained by the absence of any occupier movement during the lockdown period, causing delays to occupier take-up and a slight increase in supply. We believe that infrastructure, the surrounding amenities, and the focus on buildings with green or social credentials will play a much larger role in getting people back into the offices”, said Dinesh Thapar, Vice President of European CMBS at DBRS Morningstar.