Workwhere?
Last year I wrote about the office space dilemma which I summarised as “why pay rent for 7 days and only use it for 3 days a week?” This heading captured the dilemma and the loss of value to the user, the tenant who pays the rent. This year the debate still rages over office space driven by office building property owners who need demand for vacant space and cities who need office building revenue. So rather than vilifying the property owners, who are doing a magnificent job holding up commercial real estate values in Australia I thought I’d take a different approach. Let’s ask another question. How many days can you work from home? When you think about it people live in their home 7 days a week, but can they do 5 days’ work on top from the same location?
From those I have interviewed the answer is No, people want to go to a place to work. In fact, they miss the office, the colleagues and work friends. This demonstrates the tug of war between the home and the office. It’s now up to the industry to provide the answers which will not be going back to the future but ahead with curiosity and invention. Let’s re-imagine our cities, change the zonings and get all stakeholders on board with a new future.
The reality check
It’s five years post-COVID, the return-to-office debate is heating up—but it's missing the point. Productivity has been flat for 20 years, long before remote work existed. The real productivity gains are coming from AI and automation, not office attendance.
The political push
Commercial landlords are driving the return-to-office agenda. Half-empty buildings mean bad investments. Politicians in Australia and the US initially backed mandatory returns, but many reversed course after public backlash—especially when they realized the impact on working families.
In the US, there's another financial driver: remote workers living in different states create costly complications—multi-state taxes, higher insurance premiums, and duplicated business expenses. Many 5-day mandates are designed to force a choice: relocate back to the company's home state or resign.
In cities with 5-day mandates, an unintended consequence emerged: workers began leaving from 2pm onwards, stretching rush hour from the traditional 5-6pm peak into a 4.5-hour congestion period lasting until 7pm.
Why people want to stay home
Four key drivers:
• Commute elimination - Time, cost, and transport reliability
• Childcare flexibility - Essential for dual-income families
• Health and wellbeing - Natural light, fresh air, and trusted flexible environments
• Pet companionship - COVID bonds are real family relationships
Why offices still matter
Everyone interviewed agreed on the main drivers for office attendance: environments built around best work practices, social connection, and meaningful collaboration. Not every home is suited to being an optimal workplace, and even when it is superior to the office, who wants to work and live in the same space seven days a week? People miss the separation and social aspects the office provides.
What leaders are saying
• Customer-facing roles: Need office presence
• Support roles: Can work remotely effectively
• Hybrid sweet spot: 2-4 days office, flexible home days
• Trust-based approach: Focus on output, not hours logged
The bottom line
The future isn't binary. Smart companies are focusing on performance over presence, building trust over tracking time, and recognizing that flexibility isn't just a perk—it's essential for modern families.
Unfortunately, our cities are full of empty people spaces and because they are still valued at pre COVID prices and now doesn’t represent value we haven’t figured out who wants to use them. Maybe things will change when the owners realise what they are worth and insist on alternative solutions.
My thanks to the valuable input from my interviews with colleagues and clients especially Benjamin Osgood of Recreate RE in Los Angeles, Andrea Arata and her research team at Newmark in San Francisco, Tony Boldt at NFM in Omaha, Nebraska and Rebecca Hook, Alana Maria Jewellery, Brookvale NSW.