Demand for teleworking with a special emphasis on office space in Sydney CBD regional markets

Dramatic changes in conventional work practices through the implementation ofremote access working, better known as "teleworking" or "telecommuting", is justbecoming a reality in Australia. This paper aims to research the impact of advances ininformation technology on traditional office and also to investigate, examine anddetermine the impact ofteleworking on office space demand in Sydney. A total of 109questionnaires were sent out to major occupiers of space in the Sydney CentralBusiness Districts (CBD). North Sydney. Parramatta and Chatswood. Companieswere surveyed in 1996 and updated in year 2000 using a structured questionnaire,augmented with formal interviews, with a view to provide an indication of thepotential impact of teleworking on office space demand. Results of the analysisreveals that the implementation of teleworking will most significantly affect thedemand for A and B Grade office space. This is likely to lead to the majority of C andD Grade office space becoming obsolete. The paper concludes that teleworking is stillin the early stages of the adoption cycle in Australia. This situation is sure to changeas teleworking becomes more widely accepted and cost effective. However, the fullimpact of teleworking is unlikely to occur in the immediate future as rental costs arenot at a level which induces organizations to implement a teleworking programme.This is supported by the fact that lease incentives are still prevalent in current leaseagreements.