I know directly through associates of two large corporations...

I know directly through associates of two large corporations with HQ in Melbourne CBD that are planning not to return to work in the office - not just while the covid threat remains - but not ever. They are instead moving into a half and half model where employees are not required to work in the office space, but are still planning on keeping a space for face to face meetings when needed. But these meetings are the exception.

I'm also led to believe that this is the reaction of most large businesses who were consumers of office space. They have now learned how to run operations remotely, their employees are enjoying the additional flexibility, and these corporations are enjoying the reduced need for expenditure on office space.

I don't think this bodes well for VOL or any other business in the office space sector, relative to pre-covid times. This can only lead to an over-supply of office spaces with overall demand falling significantly below pre-covid levels. It can be argued that demand for rental space increases relative to permanent space in this new environment, however, if that is the case supply of these spaces will adjust accordingly and it seems likely that there will be plenty of additional empty spaces available and competing to catch this demand, with nothing to lose by offering base level prices.