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An outlook on Yangon’s Office market of Q3 2020, emphasizing demand dynamics, leasing flexibility, and near-term tenant opportunities
Summary & Recommendations
HEADSTRONG DEMAND AMID PROLONGED RESTRICTIONS
With the discovery of the vaccine still unlikely in the succeeding months, Yangon may perhaps continually witness spikes in infected cases, and that, in turn, will prolong the restrictions further. The government stay-at-home measures intended to contain the pandemic has proved to be almost in vain as limiting the mobility of Yangon populace remains challenging in practice. Even with modern day technologies, the workfrom-home arrangement appears to be an unideal solution. Meanwhile, while some companies have deferred relocation plans in anticipation of settling at more favorable rates, Colliers recommends both tenants and landlords to drive towards more flexible lease agreements and payment terms, so as to re-start physical business continuity in the near future. As the return to office is fundamental to many businesses especially for a nascent market such as Yangon, the sector remaining subdued should rather be seen as a cue for tenants to strike a desirable deal with their landlords.
