Key Points

• The pandemic has prompted a considerable fall in activity, which has seen office vacancy rates rise. This comes at a time of rising supply, particularly in NSW and Victoria. As such, it is unsurprising that sentiment in the office market has slumped, as reported in NAB’s commercial property survey.
• We use detailed employment data to show that nearly all job losses to date are in non-office roles. As such, the bigger hit to office work is likely to come from increased working from home, where a sixth of large firms expect more than a quarter of their staff to keep working from home in future.

Get all insights in the NAB Economic Insights – Office Demand Report.