Earn the commute: Premium offices turn mandates into magnetism

Return to office mandates are resented on the one hand. But people in the office make a company, on the other. And most people work better in a purpose-designed space, free from the distractions and competing responsibilities of domesticity and productivity. If that sounds like familiar parts of a conundrum, it is, and JLL Australia says the way this particular Gordian knot is cut comes down to providing offices that make people want to be in.

Nathan Taylor, Managing Director, Work Dynamics at JLL Australia said there is growing recognition of the value of premium office space. "The focus is being deliberate about the locations, focusing on prime, well-situated positions with strong amenities. Companies are using real estate as a tool to attract and retain people. And that means looking at the qualities that people desire, like transport, food, and wellness ecosystems."

More than that, while there may be a SaaS apocalypse out there, while AI might be coming for all our jobs, and while the lingering effects of Covid lockdowns and the subsequent work from home boom may have left city centres desolate shells of their former bustling glory, things are looking up. Getting back into the office is becoming a competitive advantage. More work gets done, better teams are built, and enduring corporate cultures are created.

JLL shared figures supporting a nascent reinvigoration of corporate office demand. It said 70% of financial service firms expect to increase headcount through 2030, and 66% of firms expect higher portfolio utilisation by 2030, and cited a focus on space design and employee experiences in prime locations as a component of their talent acquisition and retention strategies.

Whether Auckland, Sydney, Melbourne or anywhere else, traffic jams and the frustration of lost hours sitting on the motorway are a common bete noir, famously illustrated in that paean to corporate misery Office Space.

It's a factor recognised by JLL, which provides and manages premium corporate real estate, and Taylor described it rather aptly. "You need a location designed to earn the commute that gets people back into the workforce."

His colleague and Executive Director, Financial Services, Work Dynamics at JLL Australia Mo ElSayed said the company is seeing a common theme emerging from its international operations. "The space itself and the location of that space is key. The focus is on prime facilities with amenities. We've been talking about the post-Covid world for years now, we're seeing the mandates to come into the office…but we're also seeing resistance from those who feel mandating isn't right."

A mandate, ElSayed pointed out, is seen as punitive. JLL prefers offering an incentive. "That's why we call it 'earning the commute'. You want the office as a pull factor, you want a place and space that people choose to come into."

And, added ElSayed, "AI is a big part of that. It's a collaboration between people and technology that has an output to users as an experience. Bringing these elements together is better than a mandate."

While the mention of AI is intriguing, both Taylor and ElSayed noted that the office is a central component in building company culture and presence. People come to work for connection, collaboration, learning and personal interaction. "If you're not offering desirable spaces, policies and amenities in support, you're not earning the commute," ElSayed stressed. "And if that's the case you're missing out on those accidental collisions between individuals that spark ideas and enable what's next."

Taylor said there is a tradition of treating real estate as a cost item. "We prefer reframing it to a people outcome, creating those pull factors at multiple levels."

As JLL has shared insights on potentially burgeoning demand for financial services office space, it begged the question: are these spaces different from those of, say, the requirements or expectations IT workers might have?

The answer is yes, said ElSayed and Taylor. "What we find our clients want to do is create an ecosystem in one space, that helps incentivise people to enjoy their time in the office, and as a result, produce more."

That includes integrating various nuances, some of which are technological - room booking systems, automatic concierge, HVAC and power controls; anything that supports convenience, ease of access, and a conducive working environment. Added Taylor; "To be fair, there are similarities; for example, coders and brokers tend to have similar attributes they look for." Coffee is among those similarities, both gentlemen agreed.

And as for AI? For some time the advent of the internet of things and availability of sensors  have offered the ability to anonymously peek into office spaces. The resultant information flow is the raw material for optimisation, and AI analytics means the ability to design offices spaces around how people actually use them, rather than guesswork. "This enables us to use data to lead design," said Taylor. "We can see spaces that don't get used, those that do, optimise any areas, and see how individuals react within different spaces and contexts. It's a real play on recognising people's different needs, even allowing for, for example, creating spaces suitable for neurodivergent individuals."

At the centre of it, however, is a simple, very human principle, said ElSayed. "Essentially, great office space is about doing the best for your employees."

And while most of us might not like to admit it, we tend to be impressed by a great address, and intuitively know we get more done behind one of those swanky desks.