Around 61% of respondents have not been offered relief by landlords, a flash survey of the impacts of COVID-19 done by CBRE has found.

Around 61% of respondents have not been offered relief by landlords
(Source: CBRE)

The consultancy said the survey polled its 180 occupier clients in early April to gauge the industry response to the COVID-19 outbreak.

The pandemic has caused concern about the business environment and prospects for many businesses and industries, it said.

Survey participants said the economic impact of the outbreak has weighed heavily on business sentiment, with 79% expecting the business environment to deteriorate in the second half of this year.

Around 43% anticipated a revenue contraction of 10-30%.

Some 27% expected landlords to be more accommodative since their businesses have been severely disrupted. 

A broader survey, which reviewed occupiers’ opinions in the Asia-Pacific region, found that the retail industry was significantly impacted by the disease, with many stores suspending expansion plans.

Such delays in rental decision are expected to have a lasting impact on the following months. 

However, 24% in the region still expected revenue growth in 2020, with the information technology industry being the most optimistic.

Thanh Pham, associate director of CBRE Vietnam, said, “There will be many new trends on business continuity planning that occupiers will focus on in the coming time. Companies are now more aware of the importance of evaluating and developing effective office use/allocation strategies.

“The application of technology will be a leading factor in various industries, including the technology industry. More than half of occupiers in finance and banking sector are considering splitting up their teams across multiple buildings.”