More Australian corporate businesses plan to increase or maintain their existing office space requirements over the next three years than those planning to downsize, according to the recently released Australian figures from Knight Frank’s (Y)ourSpace report.

Unsurprisingly, Australian corporate businesses were found to be more office-centric, with most respondents predicting a hybrid approach to workplace strategy going forward. By comparison, those expecting remote working to be the predominant workstyle were a notable minority.

Collaboration, wellbeing & retention

When searching for the right office space, occupiers identified increased collaboration, employee wellbeing, and talent attraction and retention as their most important objectives.

These findings are in sync with the views of demographer, Simon Kuestenmacher director of the Demographics Group, who in a presentation to API Fellows last week, noted the strongest case for people returning to the office has to do with learning and knowledge transfer.

However, Kuestenmacher also noted there’s little argument for a return to full-time in the office.

Interestingly, while only 6.1% of respondents thought their business strategy around real estate best supported diversity and inclusion, all respondents admitted that real estate was a strategic device for the business.

The top three services and amenities staff were expected to demand over the coming years were cycle storage and facilities, food and beverage offerings and facilities supporting mental wellbeing

Flight to quality

What’s evident from the biennial report, adds Knight Frank global head of occupier research Lee Elliott is that the flight to quality is upping the ante on amenities and office building expectations.

“The top three services and amenities staff were expected to demand over the coming years were cycle storage and facilities, food and beverage offerings and facilities supporting mental wellbeing,” said Elliott.

“Australian occupiers are looking for these features, and more when it comes to finding the right workspace and moving forward in order to attract and retain talent.”

Hybrid workstyles on trial

The biggest takeaway from the (Y)ourSpace report, notes Knight Frank Australia Chief Economist Ben Burston are plans by many companies to make meaningful changes, both up and down, as they navigate a more complex operating environment in the post-covid world.

While 63% expect to have hybrid workstyles in three years, 45% hinted at plans to decrease their size requirements.

While most (57%) businesses surveyed in Australia indicated they would upsize, 24% opted for an office-first approach, and only 6% expected their workstyle to be predominantly remote.

“Multiple changes to the operating environment are making it more difficult for corporate occupiers to make decisions on their office space,” Burston said.

“Uncertainty over the optimal long-term workplace strategy, the need to experiment with hybrid workstyles, adoption of new technologies, tight labour markets and volatile economic conditions are making for a challenging backdrop against which to make real estate decisions.”