Rents can only soften on new leases signed, any short term falls in rentals will therefore be minimal to income generated next year.
For there to be a material impact on income the rental falls from the current contracted level would have to be protracted
i.e based an a long term event (long recession) or a fundamental change to working practices.
Like you I don't buy the working from home paradigm.
4.3% of properties are currently vacant (with an insignificant amount in VIC/NSW) & 10.2% up for renewal in FY21.
Even if there was an across the board fall of 10% in rental rates, which there hasn't been, that would mean a 1.4% drop in income / distributions.
That would drop the yield from a current 8.5% to 8.3%.
IMO the market has priced in something that isn't going to happen.
News: COF Centuria Office REIT Confirms Quarterly Distribution For Dec Will Be 4.125 CPU, page-29
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