• Just 35% of Melbourne CBD offices were occupied in March, the Property Council of Australia (PCA) says.
• Worker preferences for flexibility are keeping office occupancy suppressed nationwide, the organisation said.
• PCA chief executive Ken Morrison said remote work is “here to stay”.
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Just 35% of Melbourne’s CBD offices and half of Sydney’s white-collar work spaces were occupied in March, the Property Council of Australia (PCA) says, as the industry body concedes remote work is more than a passing trend.

In new survey results, released Tuesday, the PCA revealed Melbourne’s CBD office occupancy increased 11% since the final week of February.

That figure may change in the coming months, after the Victorian Government wound back occupancy limits on office spaces, but is likely to remain significantly suppressed in the medium-term compared to pre-pandemic levels.

Sydney’s 2% increase from February was overshadowed by a six point jump in Perth, which reported 71% CBD occupancy. Hobart and Darwin reported 4% increases, to 80% and 84% occupancy, respectively.

The figures from Australia’s other capital cities remained relatively stable.

The PCA said more than half of its survey respondents identified employees’ preference for flexible working arrangements as a primary cause of those low occupancy figures.

In a statement, PCA chief executive Ken Morrison said remote work is “here to stay”.

“Greater flexibility will be a hallmark of the post-pandemic workplace,” Morrison said, adding that increased CBD foot traffic will still be vital for inner-city businesses recently cut from the $90 billion JobKeeper wage subsidy scheme.

Referencing initiatives to corral workers back into the office, like its own proposal for Melbourne CBD workplaces to enshrine early Friday knock-offs, Morrison said negotiations between building owners and government bodies are “well advanced”.

As bodies like the PCA work to rebuild the profile of Australia’s office spaces, organisational experts say companies should consider adopting flexible working practices for the long-term.

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