Profimex Market Review Update – February 11, 2021
EXCLUSIVE: Distress Comes To Student Sector As 2 Schemes Go Into Administration
The Student Living sector has not been immune to the pandemic. With England now being in another lockdown and universities moving back to online learning, the sector is taken another hit. In some cases, operators had to even return rent to students, as they could not participate in the academic year. According to Bisnow, two student accommodation schemes, totally 600 rooms and once value at £35M, have now been put into administration.
Why US Office Demand Is Likely to Slump 15% Post-Pandemic
According to a recent analysis, conducted by Green Street, aggregate office demand will likely decrease by 15% because of the pandemic. COVID-19 has on the one side, stabilized the densification of workers in an office, which has been a strong trend in the last decade, and on other side, increased work-from-home policies. [As a result], “less office space would be needed for the same amount of employees who will be showing up less often to the office,” the report states. “The net result is an increase in ‘effective density’, which should be the yardstick for measuring density and its impact on office demand. An increase in effective density means less space per total employees and thus, lower office demand.”