Workers want suburban offices closer to their homes

AN overwhelming number of workers want to work in a flexible workspace near their homes – at least as much as in their primary offices – according to new research, while there appears to be a large gap in expectations and reality for agile and technologically advanced work experiences which are becoming increasingly important. A report, Next, flex – technology for the next generation Australian office, by global software and technology company Essensys, in collaboration with Flexible Workspace Australia (FWA), also shows a workplace redesign and tech-enabled real estate is an immediate priority for business leaders over the next 24 months. Property owners of traditional offices and flexible workplaces need to leverage technology for the optimal tenant experience, as landlords and investors compete to offer spaces that will attract and retain talent,” said Colliers’ head of flexible workspace Sami Schiavi.

Certain types of technology will entice nearly 70% of workers back to the office building, according to the report, with a majority of responses being portfolio-wide digital experiences. “The prize office spaces use technology to enhance convenience (e.g., ensuring tenants can use an app to book carparking spaces, work desks, meeting rooms and much more to facilitate a seamless experience from arrival at the workplace). While apps supporting convenience are prolific, not many in the market have enabled the automation of everyday processes to be fully integrated as part of one system,” Schiavi said. “No one wants to be fiddling with separate applications and systems if they don’t need to be.”

“Why is digital transformation not being made a top priority? Why is enterprise-grade internet not treated like a utility by owners and operators, when connectivity is now deemed an essential service? Why are offices not doing everything possible to meet end-user demands and remain competitive, when agile and flexible working patterns have become the norm?”

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“An office building is no longer just a physical proposition.”

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Desire for flexible workspace Meanwhile, the survey found that 44% of employees are back in the office for a full five days, while the rest have flexible work arrangements where they work remotely between one to four days. It found 85% of respondents, especially workers under 41, want to work in a flexible workspace near their homes, at least as much as their primary offices. The three top factors standing in the way between workers and their offices are COVID, high petrol prices due to inflation, and delays in public transport resulting in long commute times. Chief property officer of flexible workspace provider Hub Australia, John Preece, said we are entering into a phase of “extreme personalization”.

“The ‘traditional office’ of the past – which was a ‘one size fits all’ product – is going to be replaced by workspace ecosystems comprised of a variety of spaces to perform work tasks that are created at an individual level, and not necessarily imposed at a corporate level. Employees want choice. “The HQ venue will be an important part of that ecosystem, but it will be significantly smaller and significantly better than the traditional office of the past.” Hub is currently focused on an expansion strategy to meet the changing worker demands, recently opening new sites in city-fringe and suburban areas.

CBD office occupancy data from the Property Council of Australia showed increases in Sydney and Melbourne during October, although they remained at a relatively low 58% and 45% respectively. Perth increased to 78% while Adelaide inched downwards to 76%, Brisbane fell to 64% and Canberra lifted modestly to 57%. The report also found that 57% say that their office building has significant gaps for a flexible, seamless and agile experience, while more than 90% of Millennials and Generation Z employees experience a gap between the technology currently offered in their office and what’s needed to do their jobs effectively.