Government agencies reduce office footprint as workforce stays at home

Over the past 12 months, the department has “further consolidated our real estate portfolio in the Melbourne central business district” with most employees now working at 35 Collins Street.

A spokesman said the government “manages properties to maximise the efficient use of space”.

The Auditor-General has reduced its office space at 35 Collins Street.Credit:Getty

The public sector is the CBD’s biggest employer. Workers are generally expected to go to the office three days a week but have the option to negotiate, with similar arrangements in place at most private companies.

Mask mandates for public transport and taxis were lifted last week, leaving almost none of the COVID-19 restrictions that have deterred workers from returning to their offices in the past.

Some departments, including the Department of Health and the Suburban Rail Loop Authority, are looking to upsize, according to a commercial agent who did not want to be identified.

The Department of Environment, Land, Water and Planning (DELWP) has increased its office footprint in the past two years, with more than 55,000 square metres tenanted across Victoria, up from about 51,000.

Deputy opposition leader David Southwick said the CBD’s recovery had stalled and accused Premier Daniel Andrews of “flying the white flag”.

“Instead of adding to already record ‘for lease’ signs across the CBD, we need innovative solutions to return workers, visitors and vibrancy to our city centre,” Southwick said.

Loading

Weekend foot traffic has recovered to about pre-pandemic levels in the CBD, while last Wednesday was the busiest workday for commuters in the month of September, and Lord Mayor Sally Cap said productivity was surging.

Cath Evans, Victorian executive director of the Property Council, said activity in the CBD was starting to bounce back and demand for office space had remained steady.

“Considering that the majority of commercial leases are longer term, organisations in both the public and private sectors typically take a longer view when reviewing their space requirements,” Evans said. “Flexible working arrangements don’t necessarily translate to a reduction in floor space, as economic growth must be factored into long-term space requirements.”

To encourage Victorians to dine out, attend events or visit galleries, the Andrews government has reintroduced its dining and entertainment stimulus package. Under the program, 25 per cent of a bill worth more than $40 can be claimed back as a refund.

“We have invested $300 million jointly with the City of Melbourne to boost the CBD through the Melbourne City Recovery Fund and the Melbourne City Revitalisation Fund,” the government spokesman said.

With Simon Johanson

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.

Source link

Originally published at Sydney News HQ