The Economist Intelligence Unit (EIU) has suggested that the COVID-19 pandemic may reshape and even reverse decades of globalisation. The EIU suggests that global supply chains may be replaced with regional supply chains that would be less disrupted by events across the globe (geo-political crises, pandemics, etc.). Furthermore, they suggest that more local warehousing could also be a future result of the interrupted global supply chains experienced during the COVID-19 pandemic, particularly as China shut down its great manufacturing production. The EIU also says that the digitisation of business and new perspective of risk will further affect how multinational corporations make supply chain
CBRE has provided some insights, showing that the commercial office sector will be hit the hardest, followed by retail property and then industrial/logistics property. Across Australia CBRE expects commercial office rents to fall by between 5% and 10%, depending on the specific market. At the same time, retail rents are expected to fall between 4% and 7%, while industrial rents will fall between 0% and 1%. As every has shifted to purchasing goods online, the logistics and freight industry is booming. More interesting is some of the shifts that CBRE has picked up in a survey of tenants across the Asia-Pacific region. Over 80% of commercial office respondents said they were increasing investme
