State government encouraged to follow NSW's recent office-return order
The South Australian government is being urged to follow New South Wales in ordering public servants back to workplaces to boost the local economy.
The Property Council of Australia told SA Premier Peter Malinauskas to follow NSW Premier Chris Minns and "prioritise the health and sustainability of our small business economy."
"If the Malinauskas Government can push harder for more people working in the CBD as the Minns Government has done in NSW, they absolutely should," said Property Council SA deputy executive director Richard Fowler in a statement.
Fowler said given the relatively high proportion of state government workers in Adelaide CBD offices, the city economy can "thrive or dive" based on foot traffic and discretionary spend.
"If the CBD does well economically, the benefits flow beyond the four terraces of the city," he said.
Public sector employees of South Australia have the right to request flexibility, which can be applied to work patterns, work hours, or work location.
According to the SA government's Determination, enhancing flexibility supports work-life balance, as well as boosts retention and recruitment for the best talent.
But Fowley underscored the economic benefits of bringing more employees back to offices.
"The reality is that flexible work existed before COVID, and it will exist into the future," he said.
"However, as revealed by the Property Council's Office Market Report, the private sector is now investing into office space at record levels because it offers employers a place to nurture talent, innovation, and productivity growth. In other words, it's good for business."
The July 2024 Office Market Report revealed that the office vacancy rate in Adelaide decreased from 19.3% to 17.5% and is one of the two capitals to record higher prime vacancy than secondary vacancy.
The call to encourage office return in SA comes as the NSW government ordered its public servants back to workplaces, a move lauded by the Property Council of Australia.
"This is a game-changer for our CBDs and local centres. More workers mean more life, more investment, and more business for our cities," said Katie Stevenson, NSW Executive Director of Property Council of Australia, in a statement.
"Our CBDs are the heartbeat of the economy, powering jobs, investment, and thousands of businesses that rely on bustling commercial centres. It's great to see the NSW Government stepping up and leading the way by getting public servants back to their desks."
Sydney's office vacancy dropped to 11.6% as per Property Council data, but Stevenson said this remains "historically high."
"This directive is the shot in the arm we need to kickstart a vibrant, thriving city, ready for fresh investment and growth," she said.
