Australia’s capital cities face a $1.6 billion annual spending shortfall if workplace trends persist and 440,000 fewer people visit the office each day, an independent property research collective estimates.
“The structural shift in the role of the city office and the 9-to-5 working model has created challenges for all capital cities across the globe. This shift has taken place despite numerous incentives and, in Australia at least, the return to the office appears to have stalled,” PAR Group researchers, Damian Stone of Y Research and Rob Ellis from the Data App, said.
The impact of fewer office workers on annual spending ranges from $1.58 billion in lost revenue to a $2.67 billion drop under a scenario that averages the past two years of office occupancy across the country.Either scenario will have a major impact on city retailers, particularly in food and beverage sectors, they said.
“The structural shift in the role of the city office and the 9-to-5 working model has created challenges for all capital cities across the globe.”Prime and A-grade city towers, most of which are owned by real estate trusts or superannuation funds, will be shielded from the impact of the changed workplace culture, analysts believe.
simonjohanson Business is getting really desperate. You can’t unscramble the egg. People don’t need to sit in traffic jams and pay money to greedy toll road operators or spend hours on packed unreliable public transport 😉
simonjohanson Got a feeling inflation might do that anyway.
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