Significant lift in office occupancy levels expected shortly
Office building owners and managers expect a significant increase in occupancy levels over the next month or two, as capital city CBDs post increasing activity.
From December 2020 to January 2021, more office workers have returned to their workplaces on the back of reduced government public health restrictions and shrinking safety concerns, according to the Property Council of Australia’s latest survey of CBD occupancy.
While office occupancy rates are still far from pre-COVID levels, Property Council’s chief executive, Ken Morrison, characterised the uplift as “a godsend for the thousands of businesses that rely on bustling city centres to survive”.
“Our CBDs support millions of jobs and generate hundreds of billions of dollars in economic activity,” Mr Morrison continued.
With more people coming back to the office, building owners and managers are keen to support tenant businesses and their employees by ensuring workplaces are COVID-safe.
“The mission for policymakers, employers and the property industry over the coming months will be to maintain momentum and ensure our CBDs return to full activity as quickly as possible,” the chief executive commented.
Over the past month, Melbourne saw the highest rise in occupancy, doubling from 13 per cent before Christmas to 31 per cent in the week after Australia Day.
Sydney, meanwhile, maintained a 45 per cent occupancy rate from December to January despite the recent lockdown in the Northern Beaches.
Of all capital cities, only Perth and Darwin saw a decline in their occupancy rates over the same period.
Perth went from 77 per cent in December to 66 per cent in January following the recent five-day snap lockdown, while Darwin saw a slight drop from 82 per cent to 80 per cent.
Despite the drop, Darwin does currently hold the record for highest office occupancy at 80 per cent, alongside Hobart.
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