The Impact that COVID-19 and working from home has had on the amount of main location office space retained and the future use of rented satellite offices

Abstract

Despite the extensive amount of research on the impact that the COVID-19 pandemic has had on significant changes in the location at which work takes place, especially working from home (WFH), there is very little systematic consideration given to the relationship between the substantial increase in WFH and the responses taken by organisations in reviewing their office (work space) capacity needs in the future, including a switch of the mix of utilising work space in the main office(s) and satellite office locations. Using data from 459 businesses for three periods for pre-COVID-19, April 2022 (25 months after the outbreak of the pandemic) and stated intentions for 2023, we develop a random effects regression model for the Greater Sydney Metropolitan Area in which we identify some of the influences on the downsizing or not of the main office(s) work space, and comment on what we see as the most likely scenario for WFH and work space in the main office and rented satellite office space under the ‘next normal’. The findings can be used to inform future commuting travel as well as changes in land use activity at specific locations, including possible reallocation of existing office space to other activity uses.