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One British office furniture company captured attention when it predicted that, if workers don’t return to the office, we’ll all have a hunched back, dark, swollen eyes, and claw-like hands in 70 years’ time.

But while businesses such as Furniture at Work might have a vested interest in turning around the trend towards working from home, how worried are businesses in other sectors?

Infometrics chief forecaster Gareth Kiernan said much of the disruption had already happened but areas still facing upheaval included central city hospitality and retail operators, business air travel and technology firms.

Kiernan said the country’s culture of coffee and lunch-buying was underpinned by people being at a workplace, and with reduced worker numbers in towns, there has been less spending taking place.

“As a result, the number of cafes that can be sustained and remain viable is likely to be less. If people are working from home, this spending simply doesn’t take place.”

It was much the same for central city retail.

Tony Gutierrez/AP

Working from home has become more prevalent since before the pandemic – but how is this affecting businesses?

“However, this spending probably has more of a displacement effect, with people doing the shopping they might have done on their lunch break closer to home instead.”

There could also be a resulting need for more retail and cafes, he said.

Firms were now more likely to conduct video calls and virtual meetings resulting in less business air travel and people working remotely were investing more in technology and associated infrastructure to reduce any limitations that might prevent them from being as productive as they were in an office.

Greg Smith, head of retail at Devon Funds Management, said, a number of businesses now required people back in the office.

CHRISTEL YARDLEY/STUFF

Hamilton cafe struggling due to corporate employees working from home. (Video first published August 24, 2020)

He said this has had an effect on businesses in Auckland.

“We’re right next to Commercial Bay and the food court was pretty empty a year a go, but it’s pretty bustling now.”

During Covid-19 the balance of power was more tilted towards the employees but as the country had gone into a technical recession, employers were taking more charge, he said.

Ricky Wilson/Stuff

More people have returned to central city offices at least for some days of the week.

But the cost of living crisis was also likely to keep people’s focus on what could be done at home a bit more, he said.

“Rather than going to the food court and buying lunch for $12 you can make a toastie sandwich at home for free,” he said.

Colliers’ CBD office space report for the first half of 2023 showed the overall vacancy rate had hit a cyclical high of 12.9% but rents were still broadly rising.

Ian Little, associate director of research at Colliers said the company expected to see a continuation of hybrid work as organisations searched for talent in a challenging labour market.

“This has contributed to a rise in firms looking to provide their team members with premium workspaces as part of their overall offering,” he said.

The location of an office space also played a key role, he said. Public transport remained vital, while high-quality end-of-trip facilities were appealing for staff who appreciated access to retail and hospitality amenities, he said.