It’s been the question on everyone’s lips for the past few years, will the global pandemic result in the “death” of the Central Business District as we know it?
Whilst no-one has a crystal ball and we cannot predict the future, it probably is not all doom and gloom as many may think.
As a business ourselves based in the Brisbane CBD and having been through the latest Government guidelines surrounding capacity limits in the office, it is a question that is relevant now more than ever. For those also located in the CBD, I am sure you will agree that whilst there is a ‘buzz’ to the district with workers returning to the office – numbers are not the same as before the pandemic and it is visible that this may never be the case.
It is clear that remote working is here to stay in some capacity, whether employees choose to work permanently from home, or they split their time between home and the office. Over the last two and a half years, we have continuously seen that employees can be trusted to work remotely and to do so without issue, and that the benefits of doing so, have also helped with productivity and building a positive work/life balance.
Recent data from CoreLogic’s ‘Quarterly Regional Market Update’ released earlier this month suggests that from a residential point of view, more people are moving to regional areas given flexible working conditions, the potential for more family space, and affordability. Again, signs that many workers will consider WFH as an important part of their employment compared to being in the office. It seems more and more people are looking to align their housing with their desired lifestyle.
However, the report also suggests that a return to ‘normality’ in the future will refocus attention back to the capital cities and the priority of a return to the office.
The BBC UK recently discussed the matter of location-based working and remuneration given a similar situation that London businesses face. Many are considering the option of offering ‘geographic pay’ to remote-workers reflecting such things as time spent in the office vs. the cost-of-living for employee’s whose home base is outside London (even the United Kingdom).
Of course, the cost-of-living in London is significantly higher than that of Brisbane, but the idea is something that may be of consideration to employers as we look to bring staff back into the office on a more permanent basis in the future.
The good news is that the above CoreLogic update is not the only report that suggests the traditional office environment still has a part to play for both employers and employees and it will not so easily be forgotten.
The Financial Review has reported that two global Professional Services firms have agreed major office leases in the Brisbane CBD – committing to Waterfront Brisbane projects in the famed “Golden Triangle”.
This could be evidence that the CBD is not as ‘dead and buried’ as we think and that there is anticipation that majority of workers are keen to return to the office in some form.
For many organisations across industry, the office space is the heartbeat for building culture, on-boarding and employee contribution. Therefore, importance will still be placed on the office – it may well be the fit-out, size, and subleasing options (a shift to ‘pay-per-seat’) that may change.
Back in April 2021, the NAB Group Economics division released a discussion paper on getting people back into the CBD. Their research suggested that the top reasons Australians have stopped visiting/or visiting less often: 1 in 2 have no reason to do so (particularly the over 50s); 1 in 3 due to social distancing/fear of COVID, prefer to shop/eat locally; 1 in 4 expensive parking, not wanting to use public transport; and 1 in 5 too many closed shops/cafes/restaurants, working from home, lack of life/vibrancy.
Now in 2022 have the above concerns been addressed or people’s mindset now more fixed and therefore the habit changing messaging will need to be louder. This conversion is still ongoing.
Earlier this month, we sat down with Robert Dunne, Director – Commercial Sales at Savills Australia as part of our Building Your Business podcast and naturally the question of the “Death of the CBD” and remote work was posed to him. Across the discussion, Robert reaffirmed the importance of the traditional office space and suggested that a rise in ‘hot-desking’ and more common area workspace, will bring employees closer together – fostering culture and continued collaboration.
He believed that young professionals would continue to be attracted to the CBD given its appeal to easy access to activities outside of work, but also the ability to further relationships with colleagues and peers by grabbing a coffee or lunch outside of the office or attending networking and development opportunities (typically hosted at a CBD location).
In a similar sentiment to the BBC article, Robert also commented on the forming link between staff location and remuneration. Throughout, he believed that allowing employees to choose between lifestyle/flexibility vs. reward would further the bond between staff and employer, and the option of greater flexibility would make a business doing so, more attractive throughout any recruitment process.
The discussion was especially timely given the situation and for those who may have missed it – I encourage you to listen to his thoughts on the subject (available Building Your Business Podcast).
Again, none of us have a crystal ball, but there is evidence to suggest that the CBD office space still plays a crucial part in business.
For More Information
For more information or assistance in forming your business strategy for 2022, please contact Ian Walker (Executive Chairman) on (07) 3002 2699 | ianw@agredshaw.com.au
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