A fifth of Melbourne’s offices are empty as home working endures
Some 18% of office space is empty in Melbourne, which was one of the world’s most locked down cities during the pandemic
ALMOST a fifth of Melbourne’s offices are empty after work-from home trends pushed vacancies to the highest in Australia, according to data from the Property Council of Australia.
Some 18 per cent of office space is empty in Melbourne, which was one of the world’s most locked down cities during the pandemic, data released on Thursday (Feb 6) show. The vacancy rate was 4.3 per cent above the national average as at January, with Sydney at 12.8 per cent and Brisbane at 10.2 per cent.
Melbourne also recorded its highest period of negative demand since 2022, more than any other central business district in the country.
Work-from-home arrangements have curbed the need for office space since the pandemic, especially in Melbourne where remote work habits have become an enduring legacy of the lockdowns. However, the Property Council warned of further economic fallout for the city’s state of Victoria if vacancies remain so elevated.
“The thousands of small businesses that call our CBD home are struggling without the regular foot traffic of office workers to support them,” Victorian Executive Director Cath Evans said in the statement. “While flexible working is a feature of many top organisations, nothing beats regular in-office contact for team building, mentoring, skills growth and productivity.”
Melbourne vacancies remain at 18 per cent despite a small decrease in office supply, due to space being removed from the market for refurbishment or re-purposing, the Council said. BLOOMBERG
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