New accounting rules that took effect in January are predicted to increase demand for flexible offices worldwide . IFRS 16 requires companies to include leases longer than 12 months and worth $ 5,000 or more as liabilities on their balance sheet . That will result in fewer firms committing to longer leases , Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai . The changes will also have repercussions on commercial lease valuations and sale - and - leaseback deals , which have become more prominent with the growth of real estate investment trusts , Albert said .
New accounting rules that take effect in January are predicted to increase demand for flexible offices space. IFRS 16 requires companies to include leases longer than 12 months and worth $5,000 or more as liabilities on their balance sheets. That will result in fewer firms committing to longer leases, Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai. The changes will also have repercussions on commercial property valuations and sale-and-leaseback deals, which have become more prominent with the growth of real estate investment trusts, Albert said.