New CBD office towers of the post-Covid future will reflect changing workers expectations

A wave of new office construction in Brisbane worth billions of dollars could be on its way and they will reflect new pandemic-inspired workplace expectations. See what is planned.

Construction is forecast to start this year on billions of dollars of state-of-the-art office towers in Brisbane that will reflect a new level of pandemic inspired workplace expectations.

A wave of large requirements will hit the market in 2022 kickstarting building as major businesses and organisations seek to upgrade their offices in the CBD during the pandemic era.

In the Brisbane CBD work started before Christmas on a $600m 38-storey tower at 205 North Quay in the Brisbane CBD that will house Services Australia and be completed in 2024.

Other planned projects in Brisbane that could get the green light includes the Charter Hall/Investa’s $650m 28-storey tower at 360 Queen St in the CBD. The site has been cleared and the project will deliver 45,000sq m of A-grade office space, a publicly accessible retail component within its podium, childcare centre, supermarket, and indoor sport and recreation centre.

Also, Dexus is pushing ahead with plans for a $2.1bn transformation of Eagle Street Pier and its Waterfront Place commercial precinct in Brisbane’s CBD. The plans include two office towers of 49 storeys and 43 storeys.

The new towers will reflect the shift in prime office assets. While green, wellness and high tech features have been incorporated into office design for some time, the pandemic has accelerated and intensified their adoption, increasing their desirability for companies who want to ensure staff will commute to their expensive pieces of real estate.

Hassell Brisbane studio principal Kirsti Simpson.

Leading architects Hassell Brisbane studio principal Kirsti Simpson said the most important issue for the new breed of office towers is that they must make their mark.

“The one thing is to have a distinct product in the market,” she said.

“There is no question that a big part of that is about authenticity relating to this time and place.”

Offices are no longer thought of as a bricks and mortar space where workers automatically come to everyday. Instead they will be seen as paces for collaboration, connection and inspiration.

More like an A-grade hotel in many cases, new office towers will have impeccable green credentials such as NABERS (5.5 minimum), Green Star Design and As-Built, Wellness Rating, a significant area of natural ventilation and light to the tower, and increased use of sustainable materials designed to future-proofed from potential impacts of climate change.

They will also have smart technology to monitor water, electricity and waste energy efficiency in the building.

Many of these buildings will have outside areas like so-called skygardens, while inside there will be purified air which ties in with post Covid demands for fitness, mindfulness and work-life management services. This includes gyms, swimming pools, meditation retreats and a range of eating and drinking options.

The new office towers will also feature hi-tech security and safety features.

Increasingly the design of offices is being merged with the comfort of home, meaning offices are including comfortable seating, warm lighting, curtains, indoor plants, outdoor seating, plush carpet and noise reduction or sound absorbing materials like partitions and rugs.

Artist impressions of $600m office tower being built at 205 North Quay,

Ms Simpson said her clients are becoming more involved in the design of workplaces which has ensured “new and interesting criteria” in the Covid era.

“They are buildings designed for the whole day in a life,” she said.

Ms Simpson said according to global surveys workers’ main concerns with returning to the office was getting the workplace right by ensuring offices are flexible with collaborative areas, green space, wellness and health spaces and a cafe.

Staff also wanted better amenity outside the office — cafes, bars and retail.

“I think that is something about a return to community. We all recognise the importance of supporting businesses and people that we know around us,” Ms Simpson said.

“Wellness features in an office building were once an optional extra, but now they are seen as absolutely essential.

“Not just health and wellness but those sorts of activities which allow workers in a building to have much more control over their commute.

“Commute time is a deterrent for people returning to work after gaining all this time when they worked from home.”

Surveys by the Property Council of Australia over the past two years have shown office occupancy has plunged in CBDs as companies grapple with lockdowns.

AMP Capital chief economist Shane Oliver said Australians CBDs were in the midst of a “structural” change.

“The more this goes on the more people will migrate to working from home in the suburbs,” he said.

Regardless, while CBDs have at various times more resembled apocalyptic ghost towns in 2021 there were $16.5bn worth of office assets (valued at over $5m) that transacted across Australia, compared to $8.1bn in 2020.

And with foreign buyers expected to return and super funds back in the market there are expectations of more sales in 2022 than last year.

An artist's impression of 360 Queen St, Brisbane CBD.

CBRE Pacific regional workplace strategy director Janet Martin said suggestions that there will be a mass exodus from Australia’s CBDs were “reactionary and premature”.

“There is still a role within the CBD as a major activity centre as we manage the virus better, particularly after the peak which will occur in the next month or so,” she said.

Ms Martin said the reason people go into the office will be different from the pre-Covid era when it was expected staff would just turn up.

“Increasingly now people are not going into the office every day or there is some element of choice or decision-making for them as to whether they go into the office,” she said.

“For many people they can get focused work at home — either singularly or through online conferencing.

“But what they can’t do as easily or as thoroughly is to feel part of a team, have serendipitous conversations or have that sense of team culture.

“If you want a sense of connection and a sense of love that is more likely to be created in a major work centre.”

Ms Martin said the CBD plays a vital role in terms of relationships within a workplace and beyond.

“A lot of companies want staff to have face-to-face contact with stakeholders, partners and not just in cafes but in a whole range of places that you don’t achieve by virtual connections,” she said.

``The crunch is what people can achieve together that they can’t achieve at home and coming into the CBD or major activity centre is part of that experience.”

Ms Martin said employers are seeking to create a positive experience of going into work.

“It can be positive to have these attractive extras but the bottom line is that people want to feel good about being at work and have a positive experience of working,” she said.