How Lack of Adequate Tech is Impacting Office Occupancy

Australian office workers reveal that a lack of adequate office technology is impacting office occupancy

At a time when commercial occupancy rates across the country remain stubbornly low, the latest national report launched by essensys, a leading global provider of software and technology for the commercial real estate industry, in partnership with Flexible Workspace Australia, may provide an explanation.

How Lack of Adequate Tech is Impacting Office Occupancy- report
▲ The report cover.

Surveying 1000 office workers across the country, Next Flex | Technology for the next generation Australian office delves into how office worker expectations are changing in a digital-first, hybrid work environment and how this impacts their office attendance.

A critical finding highlights a lack of adequate tech as a key factor in people deciding to work from home or an alternative third space, with more than four in five respondents (86 per cent) reporting a disparity between the existing technology in their office and what they need to enable them to do their jobs efficiently.

“An office building is no longer just a physical proposition, but a service offering that includes portfolio-wide digital experiences,” essensys APAC chief executive Eric Schaffer said.

“This report highlights that there is a gap between what office workers expect and need to maximise productivity, and what commercial offices are currently offering.

“Creating technology-enabled, future-focused spaces will play a pivotal role in attracting workers back to the office amidst the current hybrid working norm,” Schaffer said.

Key findings also show that enhancing technology in the workplace is integral to supporting Australia’s modern workers, especially when it comes to Millennials and Generation Z:

  • 85 per cent of survey respondents, especially workers under 41, want to work in a flexible workspace near their homes, at least as much as their primary offices
  • 57 per cent of Australian office workers say that their office is not equipped for a flexible, seamless, agile work experience
  • More than 2 in 5 (41 per cent) feel simple tasks take too long in the office due to the standard of their in-office technology
  • More than 90 per cent of Millennials and Generation Z employees experience a gap between the technology offered in their office and what’s needed to do their jobs effectively.

The report also found that certain types of technology will entice nearly 70 per cent of workers back to the office. Portfolio-wide digital experiences, such as building-wide Wi-Fi, ability to access space and services across a network of locations and a mobile app to interact with amenities are among the tech tools that would enhance workers’ in-office experience.

Flexible Workspace Australia co-chairperson Brad Krauskopf said the Australian office market was undergoing a transformation.

“Flexible real estate is becoming a core part of workplace strategy as leasing velocity comes under pressure following the pandemic,” Krauskopf said.

“This report shows workplace redesign and tech-enabled real estate is an immediate priority for business leaders in the next 24 months.

“With this seismic shift in how occupiers consume real estate, it’s fair to say flex is here to stay—and technology is central to its success,” he said.

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