The Knight Frank Corporate Real Estate Sentiment Index Q2 2024 report shows a continued decline in sentiment among corporate real estate leaders, reaching a level similar to that at the end of 2022. The outlook for growth over the next six months is the weakest on record, due to global economic concerns and fiscal restraint. Companies are taking a more defensive approach, limiting physical expansion and capital investment.
Although office density has increased slightly, enthusiasm for a return to pre-pandemic occupancy levels is waning, reflecting a growing acceptance of flexible working and an adaptation to a new post-pandemic normality.
Here are some interesting points to note:
- Growth Prospects over the next 6 months are weak, with the Growth Dynamic sub-index recording its lowest ever score
- Sentiment is strongest around increasing office density, which is a clear focus for CRE leaders
- There has been a significant reduction in sentiment around a return to pre-pandemic levels of occupancy – as more flexible workstyles take hold
To find out more, click here.