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Business is the winner as office occupancy rates stabilise

03 April 2023

Almost three-quarters of CBD-based employees have settled into a weekly routine of working from the office two to three days per week, according to the latest office occupancy survey by the Victorian Chamber of Commerce and Industry.

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The Chamber conducted earlier benchmarking surveys in June and November 2022 to monitor employees’ working arrangements post-COVID and how they are impacting the CBD.

We canvassed small, medium, large and family CBD-based businesses across a wide range of sectors. Key findings include:

  • The number of employees working from the office three to four days per week has increased from 41 per cent in November 2022 to 46 per cent in March 2023.
  • 38 per cent of employees are working from the office one to two days per week, an increase of 5 per cent since November 2022.
  • The number of employees working five days in the office has dropped from 19 per cent in November 2022 to eight per cent in March 2023.
  • Nine per cent of respondents indicated they have not returned to the office since all COVID-related restrictions were lifted, increasing from seven per cent in November 2022.
  • Fifty-five per cent of businesses have maintained a minimum required number of days employees must work from the office, with the majority of these respondents requested employees to return a minimum of three days per week (52 per cent), followed by two days per week (24 per cent).
  • Seventy-six per cent of employers indicated they do not expect employees to return to full-time at the office, up from 69 per cent in November 2022.
  • Two-thirds of businesses have indicated they are using social incentives such as team lunches, after-work drinks or in-person meetings to encourage people back to the office.
  • Respondents identified work-life balance and home duties as the main barrier for returning to work full time at the office with 38 per cent indicating they prefer the flexibility of hybrid working for this reason. Twenty-one per cent identified commute time as an issue, and 11 per cent feel they are more productive at home.

The complete survey can be provided on request by contacting the Victorian Chamber media team.

To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:

“These survey results show that Melbourne’s CBD office workers have settled into a hybrid working routine with almost three quarters (74 per cent) attending the office two to three days a week. There’s also been a five per cent jump in people working from the office for three to four days, which is good news for city businesses.

“While respondents are clearly telling us that they are enjoying the in-person collaboration and social connection that comes from working in-person with their colleagues, we can also see that the number of people committed to working five days in the office has dropped off significantly since November.

“The trend from November until now shows consistency in numbers back into CBD offices on weekdays. It means business owners that rely on CBD foot traffic should now be able to plan accordingly. As more tourists and international students return, we can expect to feel the CBD busier during Monday to Friday.

“Ultimately, this is what a post-COVID CBD will look like and we can now turn our thoughts to innovative ways to stimulate our CBD as part of our ongoing path to the future.”

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