Office occupancy numbers have held their ground as the country dealt with the final phase of the latest wave of Omicron and flu infections, the Property Council of Australia’s latest Office Occupancy Survey shows.
Adelaide enjoyed the largest rise, with occupancy climbing from 64 to 71 per cent, while Brisbane occupancy increased from 53 to 57 per cent and Canberra from 61 to 64 per cent.
Occupancy held firm in Melbourne and Sydney, rising from 38 to 39 per cent and 52 to 53 per cent, respectively. Perth was the only market to witness a slight drop from 71 to 69 per cent. According to the survey, office occupancy rates vary between peak and low days.
For example, on a peak day in Adelaide, the occupancy rate reached a high of 83 per cent, but on a low day, it fell to 59 per cent.
Property Council Chief Executive Ken Morrison said despite only small increases in occupancy, the data reveals a resilient office market, with peak days remaining high across most of the nation.
“Despite the challenging environment, it’s very pleasing to see plenty of people returning to their workplaces, with occupancy on peak days reaching 83 per cent in Adelaide, 78 per cent in Canberra and Perth and 75 per cent in Brisbane, with Sydney peaks at 67 per cent and Melbourne at 51 per cent,” Mr Morrison said.
“In the previous survey for July we saw occupancy levels go backwards for the first time in six months, so to see the August figures hold steady or nudge slightly higher in most capitals, despite COVID and flu cases as well as industrial action in Sydney, is a solid outcome.
“While the results are still a way off the previous recovery high points seen around May 2021, they show the resilience of CBD office markets, with occupancy levels remaining stable throughout a challenging period.
“It’s fair to say Melbourne’s occupancy at 39 per cent remains a concern, but you would hope that starts to lift again as the months get warmer and the omicron wave recedes,” he said.
Despite the impacts of the pandemic and a stalling in occupancy, the Property Council’s latest Office Market Report which tracks leased space (released last month) indicates that companies leased more space in the country’s CBDs over the first six months of the year, with demand growing by a healthy 0.5 per cent. The latest Office Occupancy Survey found the preference for greater flexibility including working from home was a major driver of occupancy levels, increasing from 48 to 64 per cent.
Health concerns surrounding the latest wave also proved to be a major influence on the data, but fell from 30 to 15 per cent, while public transport concerns fell from 13 to 12 per cent.
“People are the lifeblood of CBDs, and we don’t yet have enough of them back in our city centres to support our ecosystems of small businesses that call our CBDs home,” Mr Morrison said.
“With spring approaching and the Omicron wave having peaked, the recovery momentum towards a new normal should resume.” The survey was conducted in the field between 25 and 31 August 2022.
ENDS
Media contacts:
Property Council: Rhys Prka | 0425 113 273 | [email protected]
Property Council: Ellie Laing | 0416 007 830 | [email protected]
Office Occupancy rates:
Market | Melbourne CBD | Canberra | Sydney CBD | Brisbane CBD | Perth CBD | Adelaide CBD |
Jul-20 | 20% | 49% | 36% | 48% | 67% | 62% |
Aug-20 | 8% | 53% | 33% | % | 61% | 68% |
Sep-20 | 11% | 51% | 39% | 58% | 70% | 74% |
Oct-20 | 8% | 70% | 44% | 68% | 85% | 81% |
Nov-20 | 14% | 72% | % | 68% | 85% | 76% |
Jan-21 | 34% | 76% | % | 70% | 74% | 77% |
Feb-21 | 27% | 72% | 54% | 72% | 72% | 77% |
Mar-21 | 39% | 72% | 56% | 69% | 79% | 79% |
Apr-21 | 45% | 70% | 65% | 70% | 78% | 78% |
May-21 | 45% | 71% | 68% | 71% | 77% | 78% |
Jun-21 | 26% | 72% | 67% | 71% | 76% | 80% |
Jul-21 | 12% | 73% | 7% | 67% | 78% | 15% |
Aug-21 | 7% | 8% | 4% | 60% | 77% | 65% |
Sep-21 | 6% | 8% | 4% | 51% | 76% | 64% |
Oct-21 | 4% | 7% | 8% | 57% | 79% | 64% |
Nov-21 | 12% | 17% | 23% | 63% | 77% | 73% |
Jan-22 | 4% | 7% | 7% | 13% | 66% | 11% |
Feb-22 | 15% | 21% | 18% | 41% | 55% | 47% |
Mar-22 | 32% | 45% | 41% | 48% | 45% | 61% |
Apr-22 | 36% | 39% | 42% | 51% | % | 59% |
May-22 | 48% | 60% | 55% | 64% | 63% | 71% |
Jun-22 | 49% | 53% | 55% | 64% | 65% | 71% |
Jul-22 | 38% | 61% | 52% | 53% | 71% | 64% |
Aug-22 | 39% | 64% | 53% | 57% | 69% | 71% |