I mean, at least housing properties have this ever present cultural pressure to keep fueling it for some time. Bussiness however are more realistic. If the location got too expensive they will simply close or move. Maybe even just do their bussines 100% online.
But all these are just my guess. Outsiders like me have no chance to see what’s behind the shop front, and bussiness, especially one in crisis, will always keep up a business as usual everything is fine façade.
It’s really office space that is making a bit of a crunch. Since telework has become a thing, why pay for more office space than you really need? This is leaving a lot of skyscrapers needing to hang way too many “for rent” signs up, for properties that are very expensive and valuable.
They can’t really be converted easily either, as the needs of office space and the needs of any other kind of useable building are very different, we’re talking more than even a major remodel here if we wanted them to be residential or something.
I imagine the market will find some kind of use for them eventually, the locations are extremely valuable, but it’s difficult to foresee what that might be. Until then the problem will be inflicting some pain on the banking and real estate sectors.
Donno leh, I mean, WFH isn’t that big here yet. But I guess there are other factors like operation downsizing and back office outsourcing might also be killing office spaces.
WFH isn’t even a thing in Malaysia everyone has been asked to go back. Even in countries like Aus and US it went from being the norm to being a perk ie. a privilege, predominantly used to attract younger talent
And occasionally some big corporation run by boomer old boys club would also take away that privilege because apparently Gen Y and Gen Z are “lazy”