Here’s how companies are getting people back to the office

Monday, 25 December 2023

Vacancies in prime office buildings are at record lows as workers have returned to work this year, but office space has changed to attract them back, experts say.

Covid lockdowns forced companies to allow more office workers to work from home, and the trend soon became the new norm.

Predictions that it spelt the “end of the office” have been widespread in the years since, but they have proved premature.

A lift usage survey by Precinct Properties earlier this year showed worker numbers were not quite back to pre-Covid levels, but they were not far off.

In September, a JLL Office Sentiment Survey found over two thirds of office workers were keen to get back into the office for most of the working week.

And market data from commercial real estate firms shows occupancy up, and vacancy rates down in prime office buildings in metropolitan Auckland, Wellington and Christchurch.

But the office space of today is very different to the office space of the past.

JLL Australasia project and development services managing director Scott McCrossin says Covid changed the environment, and everyone is still working through what that means for the way people work.

While a degree of flexibility around workers’ location is necessary, companies are turning to productivity, and starting to put in place expectations or even mandates around office attendance, he says.

“There are metrics around good engagement, the visuals of leadership, and innovation. People coming together, and brainstorming, exchanging ideas and inspiration works well.

“So to encourage that, and create better employee engagement and lower attrition, companies are reinventing office space to attract people back to the office.”

Here’s how they are doing it.

Individual offices out, collaborative space in

JLL’s sentiment survey shows workers and occupiers agree the two most important aspects of a workplace are location for ease of travel, and quality of space, including fitout and ambience.

McCrossin says that following Covid the focus has been on making offices into places that people want to be in.

That can include everything from hot desks and different uses of space, to end of work facilities, to in-house cafes, bars, gyms and creches, to sleeping pods.

JLL’s new people-centric Sydney office is an example of a flexible work environment, and is a version of the co-working space offered to its tenants, he says.

“It offers space for different work styles, so there are traditional work stations, phone booth space, elevator desks, shared spaces and leisure zones.

“This allows people to find the spaces they like to work in, and move between them. Overall, there is an emphasis on shared space, and collaboration.”

The company has also teamed up with a hospitality firm, and the new office has a cafe with a barista, and holds events in that cafe/bar space.

Another change that is evident is the increasing democratisation of space, with senior managers on the floor with staff rather than in big corner offices with views.

McCrossin says offices based on hierarchy are a thing of the past, as “good leadership does not involve shutting yourself up in an ivory tower”.

“If management all have offices around the side, and everyone else is closed into the middle of the office, people won’t want to come in, or engage. That’s not what you want if you are trying to attract and retain good staff.”

For PMG chief executive Scott McKenzie, the ways humans interact with the office environment has changed, with the focus now on environments that foster worker wellbeing, collaboration and creativity.

The traffic workflow around offices is different, there are technology spaces and hot desks, and the goal is to create an environment where workers rate the space, he says.

“People want to be in great environments. Location and being close to good amenities is important, but the features of the office are also important. It is critical to think about how good design can play a part in that.”

There is a lot of research around why creating better working environments is good for people’s wellbeing, he says. “In New Zealand, we are in the early stages of that. But we will see more and more of it as occupiers realise the benefits of it.”

Green features in demand

Increasing awareness of environmental issues and sustainability has impacted on what people want from office buildings, and what companies are offering.

Argosy Property head of sustainability Saatyesh Bhana says many workes, particularly those from younger generations, want to know how “green” a building is, and how it performs.

They are concerned about carbon emissions, water capacity and air flow in buildings, and they want good air conditioning, natural light and a low glare environment, he says.

“These things contribute to well-being, but many employees may have taken them for granted before Covid, and only noticed their lack when working from home.

“New, refurbished office space, which meets green building standards and ticks these boxes, is a great way to attract employees back into the office.”

High quality end of trip facilities, such as shower and changing rooms, lockers, secure cycle parking, and chargers, are another draw-card for staff, he says.

“The key goal is to make the office environment better than at home to bring people back into the office, lift productivity and improve workplace culture, but it’s also about setting new standards for buildings.”

International and local companies are increasingly motivated to lease buildings with a low carbon footprint, and designed to incorporate climate resilience, he says.

“Existing buildings can be repurposed to include “green” features, and repurposing is more sustainable, and makes for lower carbon emissions, and less waste. Demand for this is only growing.”

Bhana points to the recent retrofit of the five-storey building at 105 Carlton Gore Road in Auckland’s Newmarket as a good example of a project which meets world-leading sustainability standards.

The low-carbon building is designed to withstand extreme climate change, and had over 300 tonnes of waste diverted from landfill during its construction.

It has solar power generation, a building management system that responds to the presence of people at the time of day and climatic conditions, and hot water heating technology that uses CO² rather than traditional gas boilers.

Other features include a biophilic living wall made from Scandinavian moss that filters toxins and dust out of the air, a green “oasis” around the building that connects office and landscaping, 5% of car parks dedicated to EV charging, and high-quality end-of-trip facilities with 50 bike parks.

Life enhancing technology

There have been big advances in the technology now used in offices, whether it is smart technology for the building and its systems, or for faster and improved digital connectivity.

Bhana says the technology available, and being deployed, helps to create environments which are often preferable to the home, and are inviting to workers.

“Let’s look at air conditioning and air quality for an example. Employees want good air quality, and getting fresh air into an office is an important part of that.

“Carbon dioxide sensors can be used to monitor levels, and maintain a good fresh air rate. This keeps people more alert, and there’s also a link between fresh air and productivity rates, according to a Harvard Business School study.”

Chilled Beam systems, which radiate fresh air rather than blow it, are used in offices in Europe a lot, and are catching on here, he says.

“They cut out draughts, but mimic the natural environment, and people like how that feels because it is a more stable atmosphere.”

EV chargers, which are practical, useful infrastructure, are another good example, he says. “They make getting to work easier, and people are attracted to that.”