The impact of COVID-19 and working from home on the workspace retained at the main location office space and the future use of satellite offices.

ABSTRACT

There exists a substantial 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 has been, however, very little systematic consideration given to the relationship between the substantial increase in WFH and the responses taken by organisations in reviewing their office (workspace) capacity needs in the future, including a switch of the mix of utilising workspace in the main office(s) and satellite office locations. The main aim of this paper is to explore the extent to which levels of working from home and increased use of rented satellite office space will be linked to changes in the amount of workspace required at the main office that was used pre-COVID-19. 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.