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With artificial intelligence (AI) expected to reshape Australia’s office market over the next decade, how will landlords and occupiers stand to benefit?
A recent CBRE research report, AI’s Impact on Australian Office, explored how advances in AI technologies could impact the Australian workplace and life around it.
The report’s author, CBRE’s Australian head of office and capital markets research, Tom Broderick, relayed that “Large Language Models (LLMs) like ChatGPT are at the forefront of AI’s practical applications and will reshape how we work in the future”.
“While the long-term effects of AI over the next 20 to 30 years remain shrouded in uncertainty, the next decade offers a cleaner picture,” said Broderick.
“It will likely be characterised by the maturation and widespread adoption of current AI technologies, which will continue to evolve and integrate into every aspect of our lives.”
Broderick detailed that offices could benefit from lower outgoings, with AI expected to streamline cleaning and maintenance through enabling robots to rapidly adapt to new environments and perform tasks without human intervention.
Common area cleaning and maintenance costs currently average around 15 per cent of outgoings for prime CBD buildings in Australia, and the cleaning of a tenancy is estimated to cost a 5,000-square-metre occupier up to $160,000 per year.
It’s for these reasons that Broderick believes advances in AI will significantly benefit office landlords and tenants.
He stated that a “revolution in office design” would be another spin-off, with AI enabling companies to automate their layout planning and furniture arrangement while optimising efficiency and comfort.
“By analysing workplace data, AI can create dynamic 3D models and suggest modifications based on team interactions and space utilisation.
“This approach will enable real-time adaptation of workspaces, fostering collaboration and productivity, while also predicting future space requirements.”
The report additionally highlighted that AI could speed up the proliferation of smart office buildings through providing companies with real-time building analytics that can:
- Optimise energy consumption.
- Enhance security.
- Analyse occupancy patterns.
- Predict maintenance needs.
- Adjust lighting and HVAC systems for improved environmental impacts.
Through the increased levels of productivity gained through AI, Broderick also raised that “companies may continue to look at more employee flexibility”.
“Australian firms are increasingly exploring the idea of a four-day work week, aiming to enhance employee wellbeing, productivity and work/life balance.
“This will impact on office utilisation, although peak day utilisation, typically from Tuesday to Thursday, may not be impacted as significantly.”
With employees often citing the commute as their reason for working from home, Broderick stated that AI-based advances in driverless car technology could reduce traffic congestion and commute times, and subsequently encourage higher office attention.
To achieve these solutions, Broderick expects demand for technology infrastructure will increase.
“To harness AI’s full potential, companies must invest in top-tier technology infrastructure within their offices.
“This includes robust computing power, high-speed networks, and advanced security systems to support AI’s complex algorithms and vast data processing needs,” he concluded.
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