Offices are empty – but they’re not doomed
The sudden shift to working from home has left some 75% of office buildings empty. But reports of the commercial property sector's death may be premature.


“Once-bustling European office blocks resemble ghost towns,” says Aimee Donnellan on Breakingviews: some 75% of buildings are empty. And this sudden shift to working from home that’s been forced on employers by the Covid-19 lockdowns “has created a new reality in the office rentals market”. In the UK, the “old standard of ten-year leases” – with rents that were only adjusted upwards – “has been abandoned”: new leases are for as little as three years.
Now companies such as accountants PwC, social-media network Twitter and asset manager Schroders “are suggesting that this is set to be far more than a down cycle in rents”. They predict “a new era in which working from home is standard”, meaning lower long-term demand for offices. But that may be a leap too far. “Lower rents don’t necessarily presage a property revolution”.
Quite, says Nils Pratley in The Guardian. It’s too early to conclude that productivity will be the same when everybody is working from home in more normal times. Or that stay-at-home employees will feel sure that they are being noticed for promotion if they are not under their manager’s eye. Before deciding the office is dead, “let’s see what happens when the novelty wears off”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
So it’s striking how much pessimism “is already baked into share prices” for property firms, says Bryce Elder in the Financial Times. In the UK, Land Securities and British Land are down by more than 40% this year. “Deciding whether these moves are overreactions demands considerable guesswork”, but so far demand for prime office space in London remains resilient – not least because firms need to be able to space staff out until a vaccine arrives.
With these stocks at such steep discounts, any private-equity funds that don’t share the “doomsday views” about the sector “are highly likely to be taking an interest” in them.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.
Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.
He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.
-
8 of the best properties for sale with communal gardens
The best properties for sale with access to communal gardens – from an apartment in a listed building opposite London’s Hyde Park, to a wing of a mansion with access to 180 acres of parkland in Henley-upon-Thames
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
8 of the best properties for sale with communal gardens
The best properties for sale with access to communal gardens – from an apartment in a listed building opposite London’s Hyde Park, to a wing of a mansion with access to 180 acres of parkland in Henley-upon-Thames
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
8 of the best houses for sale for around £2 million
The best houses for sale for around £2 million – from a houseboat moored at London’s Prospect Quay, Wandsworth, to a 15th-century chateau in Pas-de-Calais, France
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
How to bid for luxury property at auction
More people are buying luxury property at auction – but think carefully before you bid, says David Prosser
-
A rebound in UK's commercial property – should you invest?
UK commercial property's three-year bear market finally appears to be over, says Max King