Accelerating flight to quality in the office market and risk of slower demand growth
First written in FY2023. 1 of 2 entries say "Materialised", first in FY2024-Q1. Latest entry: FY2024-Q1.
Realgate moved to the "Worse" side of this theme in 2024.
0 other companies' latest entry also says "Materialised".
- FY2024-Q1MaterialisedAnnual report
「Although office demand, which had temporarily stagnated, is recovering, large-scale redevelopment projects are generating new office relocations. Older buildings in surrounding areas are struggling with leasing, affecting office market conditions in some areas.」
The Company states that the impact of office selection and demand conditions is already evident, with older buildings surrounding large-scale redevelopment projects struggling with leasing because of relocation activity. - FY2023First statedAnnual report
「In view not only of progress in work-style reform but also of the declining working population, it is clear that sustained growth in office demand cannot be expected going forward. In 2025, large-scale redevelopment projects are expected to be completed one after another, bringing new supply to historically high levels. Vacancy rates are therefore forecast to rise, while rents are expected to decline partly as a result of the increase in vacancy rates.」
The Company describes the outlook for rising vacancy rates and falling rents due to the declining working population, slower demand growth, and increased new supply from 2025 onward.