Office Attendance Mandates Expand to Four Days

Stricter office attendance rules are bringing thousands of employees back to city workplaces each week, boosting retail spending and increasing office space demand. As large corporations tighten mandates, a shift towards four in-office days is gaining momentum, particularly with requirements to work on Mondays and Fridays.

Companies like major retailers are currently asking staff to be in the office at least three days a week, but independent research suggests many organisations are moving towards a four-day model. Analysts have observed that workplaces increasingly require the work-from-home day to fall midweek, reducing the appeal of long weekends.

Research indicates that this shift will see an extra 41,000 workers return to city offices weekly, with nearly half of that figure in Melbourne alone. Office attendance variations between peak and off-peak days are significant, with up to 115,000 fewer office workers in Melbourne on Mondays and Fridays compared to midweek. Sydney sees a 65,000-worker gap.

While longer commutes may pose a challenge, higher office attendance could drive an estimated $30 million increase in annual retail spending in central business districts. However, suburban retail areas may see a corresponding decline. The trend aligns with stricter global workplace mandates, driven by corporate goals of improving productivity and workplace culture.

Office landlords are welcoming this shift, as increased attendance provides a much-needed boost to a sector struggling with falling valuations. Surveys indicate that corporate tenants are moving away from remote-first work models in favour of in-office requirements, signalling a lasting change in workplace dynamics.

Source: Australian Financial Review, Business Insider, Costar