According to the Property Council of Australia, office occupancy in the Sydney CBD in December was still only at 45%. While this is an improvement from the 35% recorded in September it is still well below the pre-COVID-19 level of 94%.
While office occupancy in the Melbourne CBD is only at 13%, reflecting the only change in lockdown measures.
To understand a wider view of office markets we note the recent comments from Jones Lang Lasalle in the US, where they expect more flexibility from corporates to expand Work From Home (WFH).
They believe WFH won’t be an overwhelming structural shift to office but do believe the office market is experiencing a cyclical recession which is leading to effective rents falling 10-20% below pre-COVID levels.