COVID-19 and UK Office Income: What Could Lie Ahead? 25 November 2020
- The COVID-19 pandemic and the ensuing lockdowns’ economic ramifications have caused significant uncertainty over the future of work and rental income from office properties.
- Nearly 60% of the UK Quarterly Property Index’s office rental income comes from leases that expire or contain a break-clause date over the next five years.
- A review of lease events showed that in 2019 47% of offices were vacant for one quarter or more after a break clause and 72% were vacant after lease expiry.1 These numbers could rise amid COVID-19, leaving more rent at risk.
