CBD offices see a rush as workers return but work from home pressure remains

Office buildings are once again filling but the scene is set for a clash between employers and workers demanding more flexibility.

Sydney’s CBD bounced back to a 45 per cent occupancy rate despite the northern beaches lockdown. Picture: NCA NewsWire / Dylan Coker

Office workers are getting back behind their desks as the normal holiday period of January was transformed into a “back to work” month because of dislocations caused by the pandemic.

The disruption from lockdowns has been met with a pick-up in office attendance, but city buildings still are confronting a structural shift towards more work from home.

CBD office workers were returning to workplaces in strong numbers last month, despite COVID-19 outbreaks in several capitals across the Christmas period, according to the Property Council of Australia.

The latest survey of CBD occupancy found that nearly all capital city CBDs were busier at the end of last month than they had been before Christmas.

Melbourne’s CBD had the strongest rebound, more than doubling occupancy across the summer from 13 per cent before Christmas to 31 per cent in the week after Australia Day, although the city has since been on alert after a second hotel quarantine worker tested positive.

Sydney’s CBD bounced back to a 45 per cent occupancy rate despite the northern beaches lockdown. Brisbane was running at 63 per cent while Canberra, which has been relatively unaffected, was at 68 per cent. Adelaide was at 69 per cent and Hobart at 80 per cent.

The only decline in occupancy was recorded in Perth with the recent five-day snap lockdown resulting in a drop from 77 per cent to 66 per cent in the final week of January.

Property Council chief executive Ken Morrison said the survey results were a positive sign for Australia’s economic recovery but more progress was needed.

“While we have a long way to go to get back to pre-COVID-19 levels, increased CBD occupancy is a godsend for the thousands of businesses that rely on bustling city centres to survive,” he said.

He said CBDs supported millions of jobs and generated hundreds of billions of dollars in economic activity, and city councils were providing some incentives to help businesses reopen.

Office workers are returning as public health restrictions are relaxed and safety concerns are addressed by employers.

But in a sign of potential clashes to come with staff unwilling to return to offices, the survey found that worker preferences for greater flexibility were the predominant reason preventing a return to pre-COVID-19 levels of occupancy.