New Zealand office workers are spending more time in the office than their counterparts in Australia and the Americas, according to a new survey of office occupiers nationwide.
CBRE’s 2025 Office Occupier Sentiment Survey, which analyses the evolution of office workplaces in Auckland, Wellington and Christchurch, reveals that while hybrid working is still very popular in New Zealand, staff here are spending more days per week in the office than their overseas counterparts.
New Zealand’s average office utilisation rate (the percentage of office space occupied during a typical work week) is at 64%, notably higher than the averages in Australia (52%) and the Americas (51%).
Campbell Pritchard, national director of office leasing at CBRE, said this trend is positive for the future of our CBDs and the office property market.
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“New Zealand’s comparatively higher rate of working in the office versus at home is driving demand for good quality office space in our three main centres, keeping pressure on well‑located prime offices and resulting in low vacancy rates when compared with Australian cities.”
The office utilisation differential is also positive for New Zealand’s office investment case. With more people at their desks more often, this underpins cash flows in prime assets and boosts the health of our CBD office markets, he said.
Despite New Zealand’s comparatively high rates of office-based working, the survey highlights a gap between how much time employers want their staff to spend in the office and how often staff want to be there.
Kirstin Cooper, associate director of workplace consulting at CBRE, said the report shows employers’ aspirations are leaning towards employees spending four days in the office per week. However, our 64% utilisation rate equates to about three days - similar to 2024 and only slightly higher than 2023.
“Staff like hybrid working and three days a week in the office has become the norm. Meanwhile senior leadership teams are asking for higher office attendance to support mentoring, workplace culture and collaboration, yet it’s crucial to maintain employee satisfaction and talent attraction, which is why they backed hybrid working in the first place.”
This presents a real challenge for organisations, as hybrid working becomes more entrenched.
There is a growing desire nationally among organisations to lift office attendance, with senior leadership taking a more active role in setting expectations. When it comes to who sets the guidelines within the organisation for time spent in the office, the centre of gravity has moved from team‑by‑team discretion to organisation‑led expectations. However most employers still stop short of hard mandates, Cooper said.
“Simply asking for more days in the office hasn’t resulted in increased attendance. So employers will either need to accept the current hybrid pattern, or move to clearer policies and incentives to achieve their desired outcomes.”
Only 11% of respondents reported having formal incentives or consequences tied to time spent in the office. This illustrates the challenge that organisations are facing, with any mandated rules likely to be met with reduced employee satisfaction.
As a result, hybrid working remains the preferred model, with 93% of organisations supporting it - a slight increase on last year’s 91%.
“These results underline a ‘nudge’ rather than a mandated approach to days spent in the office, as businesses navigate the delicate balance between achieving higher levels of office-based working and the need to attract and retain talent.”
Better traction is likely to be achieved when policy and place work together. Organisations that refresh their fit‑outs or relocate to better-quality space have a better chance of ‘earning the commute’ and can credibly ask for more in-office time.
This is reflected in the survey responses. 31% of respondents are planning a relocation and a combined 65% have either already adjusted their workplace for hybrid or intend to do so.
The strategies most often pursued are relocations to better quality, high-amenity premises and consolidation of under‑used space.
“Premium grade, well-located office space with excellent amenity is recognised as the key factor in attracting staff into the office more often. Efficient floor configuration, a great location and access to transport, supported by end‑of‑trip facilities are the main considerations for tenants,” said Pritchard.
- Supplied by CBRE
