As Melburnians are gradually eased out of restrictions in line with the other States, what will the future hold with regard to people returning to work…and more importantly the implications for CBD office space requirements going forward? As experts in ReShaping, ReDesigning and ReImagining workspaces, TOPIC Interiors are well placed to face the new challenges that have come to the fore with the Coronavirus pandemic and the subsequent concerns over employee health and safety with regards to social distancing, high touch/use areas, common spaces etc. within the office environment. Below we look at the office space market and ponder what the future may hold…
A welcome sight – construction given a boost in Victoria.
The Victorian Government has recently shown great faith in the building and development sector by fast-tracking approvals for projects worth over $625 million all across Victoria, with the majority of these projects being office space developments.
Dexus are a long-standing project partner of TOPIC Interiors and were recently featured in a report on www.realcommercial.com.au (reposted from an article written by Ben Wilmot ‘Dexus Defies Bearish Outlook’ published on www.theaustralian.com.au on 22nd October, 2020). Office tower landlord and funds manager Dexus believes that corporate Australia will accelerate its shift back to work and is holding its distribution steady in the face of gloomy predictions.Landlords have been sold down on fears that tenants will take less space permanently due to a rise in working from home, which has been forecast to hit the amount of space they require.But Dexus chief executive Darren Steinberg rejected the notion that offices will see lasting changes and argues that staff also prefer working in offices as concerns about the pandemic fade.Mr Steinberg said major companies were mindful of the impact of Covid-19 and “continually reviewing” their plans but insisted on the centrality of office-based work in driving economic recovery.
“There is going to be more flexibility but at this point we don’t envisage wholesale changes,” he said. “The office will remain a very relevant part of the modern workplace.”
“The economy will see a recovery and business people are looking through the cycle and preparing their businesses for recovery,” he added.
But the Dexus chief acknowledged that in recessions there was weaker demand for office space and expects a clearer picture to emerge over the next 12-18 months.
The office giant has struck a series of fresh leasing deals and signalled it is looking to shrug off the bearish outlook for city towers and the company already well advanced on selling about $2bn worth of towers, with prices mainly near book value.
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The company issued guidance as a result of the strength of rent collections and further clarity regarding the extensions related to Morrison government’s leasing code. But it is subject to there being no reinstatement of any major lockdowns or unforeseen circumstances.
Dexus said it had maintained high occupancy by leasing a total of 141,388sqm across its office and industrial portfolios. It leased 53,600sqm of office space across 63 transactions in the core portfolio and at development projects.
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The company also maintained high rent collections of 94% for the September quarter and completed 180 Flinders Street and 80 Collins Street developments in Melbourne.
According to the global commercial interior company Unispace “The office isn’t dead, but will be 20% smaller” going forward. They have recently designed a predictive tool that models expected office re-occupancy levels post-COVID-19. Employee’s roles within their physical workspace is evolving and is best explained by the Unispace team… “Propeller is an evolution of the workplace continuum that captures the new skills and behaviours adopted in the past 6 months and adds these to the lessons we have learnt from the past 60 years of working in the modern office”.
For more information on this innovative modelling tool, please refer to this article:
TOPIC Interiors have recently finished an interior office space fitout project for Dexus at 189 Flinders Lane, in Melbourne’s CBD. Our Lead Interior Designer Lina Hosni shares her design intent for these two tenancies located on separate floors of this historic building…
“Located in the central business district of Melbourne, Flinders Lane, once home to the city’s rag trade and boutique designers is now full of loft apartments, cafés and high-end bars/restaurants.
Known for its Soho atmosphere and chic buildings, the laneway forms the inspiration behind the design concepts for the boutique whole floor office interiors at the Flinders Lane project.
The primary focus is to provide an exciting, lively and unique office space, one that overshadows the minimal supply of natural lighting and city views. This is achieved by drawing upon the existing industrial-like ceilings alongside materiality, bold finishes, eclectic joinery and lots of greenery.
Providing two completely different internal atmospheres and design flair, Levels 4 and 5 are anything but conventional. Offering flexibility, large kitchen/breakout spaces, private and collaborative zones, ample storage options and inviting entrances, these office spaces are not only inviting but definitely help encourage a better working environment.”
Level 4 draws inspiration from the concrete jungle itself…New York, referring to the muted tones, deep and rich colour palette, and loft style apartments. The use of walnut timbers paired with aggregate exposed concrete, recycled brick and hues of plum calls for a sleek yet industrial internal office space.
Level 5 is the complete contrast of Level 4. Taking inspiration from the city of Tokyo, this space calls for a playful, bright and lively office environment, one that helps diminish the lack of natural light. The play on colour, texture and pattern which is further enhanced through the lighting design was the main driver behind the internal scheme.
The themes of these whole floor tenancies are a great reminder of cities we look forward to visiting again one day! With careful consideration given to COVID-safe workplace guidelines regarding social distancing and common area use, these workspaces are not only functional, but would also be an inspiring environment to work in.
For further information on the two tenancies TOPIC Interiors completed at 189 Flinders Lane as part of the Dexus 180 Flinders Street project, please visit…
