Australia’s capital cities face a $1.6 billion annual spending shortfall if workplace trends persist and 440,000 fewer people visit the office each day, an independent property research collective estimates.
“The structural shift in the role of the city office and the 9-to-5 working model has created challenges for all capital cities across the globe. This shift has taken place despite numerous incentives and, in Australia at least, the return to the office appears to have stalled,” PAR Group researchers, Damian Stone of Y Research and Rob Ellis from the Data App, said.
The impact of fewer office workers on annual spending ranges from $1.58 billion in lost revenue to a $2.67 billion drop under a scenario that averages the past two years of office occupancy across the country.Either scenario will have a major impact on city retailers, particularly in food and beverage sectors, they said.
“The structural shift in the role of the city office and the 9-to-5 working model has created challenges for all capital cities across the globe.”Prime and A-grade city towers, most of which are owned by real estate trusts or superannuation funds, will be shielded from the impact of the changed workplace culture, analysts believe.
Is that 4.4 million or 440,000?
What about the loss in time by workers going to the cbd?
Bubble burst
...but the local cafes and retailers seem to be enjoying supplying the work from home crowd closer to their residences.
The Age continuing to go in hard against WFH. How’s Domain going for you? Struggling on the commercial real estate listings front?
Not just Melbourne then. Who'd have guessed?
I thought it was just Melbourne where Dan Andrews has destroyed the CBD. How did he manage to destroy the other capital cities as well?
So 440,000 people are happier having a more flexible workplace, and spending $1.6 billion in their local suburb, as opposed to the CBD. My local cafes etc are packed during the week with workers now
So move out of the CBD? It's an outdated concept for a different time when the Internet didn't exist. Adapt and move on. Don't complain if your business is dying, it's not like you weren't warned.
So let me get this right: the real estate industry wants office workers to spend their own money on pointless transport to/from CBD every weekday, waste upwards of 1hr personal time travelling each way every weekday, just to prop up their unfortunate investment choices? Nope.
440k fewer workers go to the office each day. In a month all offices will be empty. Proof you don’t need maths to be a journalist.
Because workers were a CAPTIVE market. If businesses were producing innovative, desired services people would/ will still attend. If your business model is “well people have no choice BUT to buy from us” then you’re not a long term survivable business anyway.
Why didn’t The Age write: Workplace trends will boost mental health, family life, productivity and suburban retailers will experience a $1.6bn boom?
Make all the high rise offices into long term rental apartments at reasonable cost.
Poor little Aussie battlers like Justin Hemmes need another bailout.
How will the property barons get by?
Wonder what the impact of increased interest rates, power costs, food and soon petrol prices have on discretionary CBD spend and the keeness of folk to trek in?
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