Most Australians are confident their CBDs will bounce back, according to EY Sweeney research, but our opportunity is to “lean into disruption” and make them better than before, says EY’s Selina Short.
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Three key takeaways:
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EY Sweeney, EY’s market research arm, surveyed 600 Australians from across the country at the end of 2020 to understand their views of returning to their CBD for work and play.
Fifty-one per cent of respondents believed their CBD would not be as busy as it once was and 62 per cent expected to spend more time in their local neighborhoods.
But the research also confirms that Australians maintain a strong affinity with their CBDs.
Respondents identified several characteristics that they expect will endure, with the CBD remaining the best place for: bars and restaurants (67%); shopping for fashion (65%); memorable experiences (65%); and events and entertainment (63%).
The EY Sweeney research is part of a larger investigation, commissioned by the Property Council, which will unpack strategies to revitalise Australia’s CBDs post-pandemic.
Flattening the work week curve
According to EY Sweeney, surveyed CBD workers expect to work onsite an average of 3.3 days each week, with Monday and Friday the least preferred days and Thursday the most popular.
Selina Short, EY Oceania real estate and construction managing partner, says responding to the research findings will require “tactical intervention” to “flatten the curve of the working week”.
“It’s not practical to have the office heaving on Thursdays, and for Mondays and Fridays to be dead – whether that’s the traffic congestion, managing the flow through buildings or considering the impact on weekday retailers and cafés.”
Landlords, tenants, CBD businesses and city-level governments have an opportunity to work together to “make it attractive to be in the city on Mondays and Fridays,” Short says. She suggests a range of ideas, from festivals and markets, to social networking drinks and “regular, intimate lunches where the first 20 employees who register get to connect with company leaders”.
The top five strategies to encourage people to spend more time in the CBD, according to EY Sweeney’s survey, were to:
- Reduce car parking fees
- Address social issues
- Deliver cleaner streets
- Provide frequent, less crowded public transport
- Host free community activities.
Return to office obstacles and opportunities
EY Sweeney’s research also uncovered the office aspects missed most by those working remotely: social interaction, collaboration opportunities and greater separation of work and home life.
The Property Council’s most recent figures for office occupancy – which tracks the number of people sitting at their desks, rather than leases in place – found CBD office workers bounced back to their workplaces in January in strong numbers.
Melbourne’s CBD more than doubled its occupancy from 13 per cent before Christmas to 31 per cent in the week after Australia Day, Property Council data found. Sydney’s CBD returned to a 45 per cent occupancy rate despite the Northern Beaches lockdown over the Christmas period.
But EY Sweeney’s research also found 82 per cent of respondents want more flexibility in working hours to smooth out commuting peaks and ease pressure on transport infrastructure.
The property industry’s leaders are already looking for solutions. In her conversations with building owners and asset managers, Short says “people are talking more consistently about digital, data and analytics, and about how that can help them solve challenges for customers”.
Workplaces are also being re-designed to accommodate the shift to ‘hybrid’ working styles, Short says, pointing to EY’s recent configuration of one floor at its 200 George Street headquarters in Sydney.
“There are quiet zones for concentrated work and social areas for people who don’t mind a bit of interruption. There is a learning space with large screens, and cocoon couches for small meetings… the design allows people to customise the place to their task.”
This is an acceleration of the existing trend towards agile workplaces, Short adds. “But home will become a much bigger component of the workplace than it was in the past. Don’t fight this, make flexibility integral to the new world of work.”
“Let’s lean into this disruption and make our CBDs even better than they were before – more vibrant, more productive and more exciting places to be. We want people to choose to come to the CBD for the excitement and opportunity it offers,” Short concludes.