Businesses are revamping workplaces by adding sky gardens, sleeping quarters, childcare, squash courts and golf simulators to lure employees back to the office.
Research reveals city workers are increasingly choosing to be in the office, with Melbourne’s Paris end of Collins St experiencing a surge in staff returning to the CBD.
A study by JLL Commercial Real Estate reveals 17 per cent of Melbourne CBD office buildings recorded positive rental growth in the past year.
One third of that growth occurred in Melbourne’s “Eastern Core precinct”, from Russell to Spring streets, Little Collins to Flinders St and the area around state parliament.
Landlords are going to great lengths to break the work-from-home habit. Some offer physio, cafes, health studios, art spaces and even masseuses to encourage employees back.
Property Council of Victoria executive director Cath Evans said there was “real momentum”, with “employers flocking en-masse to the high quality office accommodation, premium facilities”.
“The data proves this area is one of the most desirable business addresses in the country,” she said.
“This is a place where companies can attract top people and give them a workplace experience that matches other global cities. We all know the concept of ‘earning the commute’, and that’s exactly what these office buildings are doing, from onsite child care and health hubs to sleeping pods and squash courts.”
There was also a trend towards companies downsizing from older offices to modern buildings with superb amenities and relocating to the city to make their offices more appealing.
“For many employers, moving to an office building with these amenities adds a strong incentive for their staff to work in-office rather than from home, which we know fosters a greater sense of teamwork and collaboration,” she said.
“And also is an effective tool in attracting top-tier talent during recruitment processes.
“An office is so much more than just a workplace now; it is somewhere team culture can thrive and businesses can grow.”
The top end of the market is enjoying particularly strong results, with office vacancy in the Eastern Core’s premium buildings sitting at 5.4 per cent.
Building consultant Rider Levett Bucknall will soon move from its offices of 30 years in St Kilda Rd’s Royal Domain Centre to Collins Place, at 55 Collins St.
RLB Victoria Managing Director Tony Moleta said: “Yes, we are seeing signs of an uptick, especially as people seek out more human connection.”
“I believe working in the office plays a fundamental role in fostering that connection, alongside social learning and collaboration.
“That said, the flexibility of working from home has clear benefits, too.”
Mr Moleta said the home and office mix should be based on where staff were most productive rather than on mandated days at either.
“It’s about making sure the environment genuinely supports how people want to work and how they work best,” he said.
“The overall trend still leans heavily towards flexible working, but what I am seeing is more people craving variety in how and where they work.
“It’s less about being at home or in the office full-time and more about finding spaces that support different kinds of work – whether that’s focus, collaboration or just a change of scene.”
His company would reduce its office floorplate in moving to 55 Collins but expand “the experience”, with co-working spaces, better access to transport, food and amenities.
“It’s about making the office something people want to come into because it helps them feel connected and do their best work, not because they’re being told to,” Mr Moleta said.
Originally published in the Herald Sun (Melbourne) on Monday, 30 June 2025.
By Peter Rolfe | Photo: David Caird | peter.rolfe@news.com.au
Join the conversation on LinkedIn.
FURTHER INFORMATION:
