Penrith’s growing commercial office supply on the fringe of metropolitan Sydney, and on the doorstep of the future Western Sydney International Airport, could be the solution to the challenge of hybrid work arrangements.
Western Sydney is home to a large and growing workforce, but up until now office-based businesses have tended to concentrate in the city’s east.
This has led to a high commuter workforce, with over 300,000 workers leaving Western Sydney to attend their place of employment. In Penrith alone, close to 60 per cent of its workforce leave the area to work.
With many workers now accustomed to remote working thanks to Covid, the age of long commutes is over.
In a recent study conducted by the Property Council of Australia, 70 per cent of respondents wanted to continue to work flexibly.
The same study also highlighted workers missed aspects of the in-person environment, including collaboration opportunities and greater separation between work and home life.
Penrith mayor Karen McKeown sees the shifting sentiment as an opportunity for businesses to think more creatively about where they base their operations.
“Local offices in strategic centres like Penrith could be the solution to attract employees back to their desks,” she said.
“It offers the collaborative benefits of an office environment, while holding onto many of the work-life balance gains of remote work.”
The work near home model has benefits to businesses too. According to a 2019 study by the Melbourne Institute, workers who spend less than an hour per day travelling to their place of work report higher job satisfaction and greater loyalty than those with commutes longer than an hour.
Average net face rent for commercial properties in Penrith is $400 per sq m per annum, compared to $1200 in the Sydney CBD and $600 in Parramatta, according to Knight Frank.
With hybrid work leaving offices largely empty two days a week, there is an obvious financial incentive to move away from expensive CBD addresses.
While it may come with a smaller price tag, Penrith’s CBD still has a lot to offer. Penrith is undergoing significant transformation, including brand new A-Grade commercial developments such as Soper Place and 131 Henry Street, both located in the heart of Penrith. There’s also a host of other projects that collectively will deliver over 20,000 sq m of commercial floorspace to Penrith during the next seven to 10 years.
The increased supply comes at a time of major investment into the city, all of which will improve the city’s already-enviable amenity and connectivity.
Penrith’s City Park will provide 7000 sq m green space in the heart of the Penrith CBD, and work is progressing on the new Sydney Metro—Western Sydney Airport line.
This will see Penrith become the only city connected by rail to the new Western Sydney Airport from day one of operations in 2026.
While the return to the office seems like a distant prospect for many in Sydney, the future growth in Penrith will see many offices become less geographically distant.
The Urban Developer is proud to partner with Penrith City Council to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.
