Industry Update: Property Council Survey Findings Hight the Need for Flexibility and Foresight

By Jamie Vine, CEO and Founder, Liberty Executive Offices

Jamie Vine

Jamie Vine

The Property Council of Australia recently surveyed office tenants across a broad range of businesses to understand the sentiments of tenants regarding their current office spaces.

The findings produced some startling results suggesting flexibility is crucial in times of uncertainty.

It is worth looking at the implications for any business that is reviewing leasing arrangements.

Some of the key findings of the survey confirmed that the Perth CBD is the location of choice for business and the importance of providing a quality-working environment in order to attract and retain staff.

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But beyond these findings, the survey findings highlight a massive disconnect between current circumstances and planning for the future.

Frankly, the survey results are astonishing.

We see that around a quarter of respondents are currently subleasing space; which demonstrates that they got it wrong last time they acquired office space, only a third said their office space is the right size and the same proportion say their usage of space has changed considerably since they signed their lease.

86 percent of respondents can’t predict their office space requirements beyond 24 months – and almost half said they can’t predict beyond 12 months.

Yet we also see that almost 70 percent say they’d still lock in a conventional lease for three or more years. It makes no sense.

Maybe it’s because decision makers aren’t aware of short to medium term options like serviced and managed offices – where the cost is comparable and the terms are flexible.

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