In this episode of the JLL Perspectives podcast, Alana Hannaford, JLL’s Head of PDS Advisory moderates a fascinating discussion live from JLL’s Signature event, with Doug Hall, Property, Fleet, Assets and Transaction Management Principal, Telstra, Catherine Sullivan, Head of Workplace, Westpac, and Michael Green, Head of Tenant Representation, JLL on how organisations are reimagining corporate real estate strategy.
The flight to quality phenomenon
Organisations are reducing office footprint while increasing investment in space quality. JLL's recent cost guide shows 72% of Australian organisations plan to increase fitout investment over five years - exceeding global averages.
Hall exemplifies this shift: "We're really reducing space significantly at Telstra... but we are choosing to then reinvest some of that savings in much better amenity for the people that do come in." This reflects workplace becoming an anchor for collaboration in an increasingly digital world.
Generational dynamics in hybrid work
Contrary to assumptions, Gen Z employees actively seek in-person connection. Sullivan observed: "The younger generations are desiring to be on site... it's around the collaboration, but more so the connection they're getting." They want access to senior colleagues for learning through osmosis - something video calls cannot replicate. Hall noted that digital natives feel more organisationally connected through collaboration tools, breaking down traditional hierarchies while creating new needs for physical gathering spaces.
AI's emerging impact
AI is beginning to reshape workspace planning. Hall sees potential for better space utilisation insights: "AI might actually be able to really suggest quite different settings... we will learn things that aren't intuitive."
Green highlighted AI's broader workforce implications: " You need creative people, people who can do the stuff that AI can't, people who are very intuitive, people who are in touch with other people and creative, which then means they want a totally different work environment. They don't want a sea of white melamine desks to sit at.”
Data-driven space management
Organisations are moving beyond traditional metrics. Sullivan emphasised investing in real-time utilisation technology to calibrate actual usage versus space banking behaviours.
Strategic imperatives
Looking ahead, there are some key factors organisations should be considering:
- Market positioning: Understanding rental cycles and quality space availability
- Experimentation: Piloting new concepts before long-term commitments
- Quality investment: Choosing high-quality, durable solutions over tactical decisions
- Talent focus: Designing for the people you want to attract and retain
The transformation represents more than square footage reduction - it's reimagining how physical space supports business objectives. Organisations treating workplace as strategic assets rather than cost centres will have significant advantages in attracting talent needed for an AI-augmented future.
Watch the full episode of JLL Perspectives to hear the complete conversation for deeper insights on neuroscience in design, coffee culture's role in workplace connection, and practical advice for your organisation's workplace strategy.