The reckoning for office property appears to be coming, with valuations potentially set to fall more than 20 per cent. But a worse outcome is priced into some REITs.
The office sector is under pressure as rates rise, business expansion slows and staff stay home. It all points one way. The big reset is office values is finally underway.
Charter Hall boss David Harrison, who oversees Australia’s largest office portfolio, sees a big gap looming between Australia’s gleaming new city office towers and a generation of tired, older buildings.