Insights from the forefront of future of work thought leadership

Did you know mental illness is the leading cause of sickness absence and long-term work incapacity in Australia? Given that our work plays such a significant role in our lives—we do spend most of our working weekday hours there—it’s crucial we acknowledge its impact on our mental health and wellbeing just as much as we do on the physical side. Aside from reducing absenteeism, focusing on workplace wellness helps employees to feel healthy and valued at work, enabling them to perform their best. Additionally, a healthier workspace attracts new talent and leads to greater retention.

In recent years, there has been significant talk about the benefits of workplace design, which includes activity-based working (ABW) or agile working. But in this post, we will specifically be exploring how ABW can affect employee wellbeing—both mentally and physically. Let’s start with a definition.

What is activity-based working?

Activity-based working understands that employees undertake a variety of activities in their everyday work and therefore require different work settings, supported by the appropriate technology, to perform these tasks efficiently and productively. ABW is about creating spaces to meet the needs of individuals and teams, with an emphasis on empowering employees to make decisions which allow them to work at their full potential.

The wellness benefits of activity-based working

There are many wellbeing advantages of a workplace designed with activity-based working principles:

Sense of agency = happiness

The flexibility of an ABW workspace allows individual working styles to be taken into consideration. Employees are able to choose the space best suited to both their task, their style of working and their mood. Naturally, this licence to choose is linked to a feeling of agency or control for the employee, which is essential to a workplace focused on employee wellbeing.

Work/life balance

A key pillar of ABW is flexibility for employees. They are enabled to choose where and when they work according to their individual working style, preferences, patterns and productivity cadences. As more and more employees prioritise a healthy work/life balance, this flexibility is both attractive and significant to their overall wellbeing.

Healthy eating behaviours

A feature of many ABW workplaces is a communal break out area or eating hub for employees to dine and socialise with colleagues. Paired with a policy of discouraging eating at one’s desk, studies have found ABW encourages healthier eating and increased movement.

Collaboration and networking

Businesses and individuals increasingly understand the significance of interaction and collaboration between employees, and are looking for ways to facilitate strong connections between coworkers. ABW supports employees to work collaboratively through enhanced opportunities for formal and informal knowledge transfer and networking. And while collaboration is good for business, it’s also important for employee wellbeing. Research shows teamwork makes people smarter, more creative, and more successful—and who doesn’t want that?

Aside from the business and productivity benefits of working in a team, having friends at work boosts mood and morale, providing emotional and psychological support to ensure employees are resilient and ready for the challenges of the workplace.

Work the way that works

As we’ve already mentioned, a trademark of activity-based working is the flexibility for employees to choose when and where they get their work done. Unlike traditional one-size-fits-all workplaces, an ABW approach takes into account different personalities, habits, associations, styles and patterns of working. This is especially essential for supporting mental health in what can often be a challenging and stressful space.

An attractive workplace

While salary and benefits aren’t off the radar for younger generations, it does appear that millennials prioritise things like work/life balance and a sense of purpose or meaning in their work. With this focus on workplace wellness, it’s clear that a workspace with variations and choice in the work environment is an attractive option for the next generation of workers.

The wellness downfalls of activity-based working

Installing hot desks or knocking down cubicle walls is not enough to reap the workplace wellness benefits of ABW. This approach requires careful consideration and customisation to ensure that a company’s culture and style of working is reflected. It requires the support and buy-in of all levels of the business—from the C-Suite to the student doing work experience.

Important elements to consider when creating a fluid workplace design include:

• quiet spaces where employees can work distraction-free when required;
• making employees feel connected and ‘at home’ even without a permanent desk, such as encouraging opportunities for social interactions.

The bottom line

No matter the workplace strategy, there will be impacts on workforce wellness. However, designing a workplace that meets your business’ future vision and requirements, instead of focusing on what’s cool and trendy, will always result in better outcomes. ABW is a flexible and dynamic style of working which will support your employees to do their best work and encourage a culture of workplace wellness.

Key takeaways about activity-based working:

• One size does not fit all and operating as if it does will be detrimental to your employees’ wellbeing.
• One in, all in. Employees need to feel supported in their working practices, otherwise they can easily sink back into old habits.
• ABW offers flexibility and support which encourages a healthier workforce, both mentally and physically.
• ABW can offer a highly productive and healthy office environment when aligned with the overall business culture.
• ABW as a workplace strategy will only succeed if it meets your business needs.

Want more? In this deep-dive white paper, Axiom explores how workplace design influences digital transformation across the key areas of talent, diversity, innovation and technology. We look at the steps to achieving your own digital transformation and we emphasise the importance of having an ongoing workplace strategy as you move forward.

This post is the second in a series. Please read Part One first to understand what’s happening with the way Australia works.

As we learned in Part One of this series, the war for talent is very real, and the complexity and confusion around 457 skilled visas in Australia are not helping. Big international tech companies are consuming local talent and paying above odds on wages plus offering highly desirable employee benefits. And there is currently no national conversation occurring about the future of work in Australia and how to prepare for it.

However, the private sector is beginning to respond: in 2019, Telstra announced a huge $25million upskilling and reskilling program in collaboration with Sydney’s University of Technology. 

So what can your business do to attract and retain talented, productive and forward-thinking employees? And beyond this, how can you future-proof your workplace? Your workplace strategy is an excellent place to start. 

Start by getting to know your employees

Understanding the context around your current and prospective employees is crucial in developing a workplace strategy which suits their requirements and satisfies their health and wellbeing needs – so they can be the best employees possible. 

Future of Work strategist Cindy Lenferna de la Motte recommends considering how your employees are feeling:

• Anxious about whether a job exists for them in the future
• Stressed out living in a share house or overwhelmed by household debt (maybe both)
• Tense and worried about the climate crisis
• Concerned about failure/change/isolation/etc

Cindy says a workplace can act as a ‘release valve’ for employees, so consider how your workplace can alleviate the fears and anxieties your employees have, freeing them to be efficient, productive and happy at work. Some examples include:

• Supportive leadership that provides a future vision, encouraging co-creation and collaboration
• Investing in professional development
• Quiet spaces for ‘deep work’
• Flexible working arrangements 
• Coordinated Wellbeing programs including Employee Assistance programs and Financial wellbeing
• Acknowledging and addressing societal issues like the climate crisis as a company

Keeping the employee experience front of mind will ensure you build a business that is more ‘human’ and supports connection and community, one that is less brittle and more adaptable to inevitable change. 

Explore the nature of work

While it’s important to get to know your employees, it’s also crucial to genuinely understand the work that is taking place. Cindy mentions that often workplace design becomes a little too trendy – like installing ping pong tables when what’s really required is quiet space where employees can escape the hubbub of the open-plan office setting to get deep thinking tasks done. 

The nature of the work is also inextricably linked to the employee doing that work and their style of working. It is, therefore, essential to understand and consider both when designing spaces to work. For instance, some employees thrive in a loud open office environment and need the background chatter to concentrate on the task at hand, another employee, however, would find the same task impossible, the chatter disruptive and need a quiet space. Why not design space for all styles? Creating lots of different ways and areas for people to work – in collaboration or individually providing – sitting, lounging, standing or moving options – is a hallmark of smart workplace design.  

What the future of work in Australia looks like

According to the World Economic Forum, the top six skills required in 2022 will be:

1. Analytical thinking and innovation
2. Active learning and learning strategies
3. Creativity, originality and initiative
4. Technology design and programming
5. Critical thinking and analysis
6. Complex problem solving

Consider how your workplace can support this type of work. Think about both the physical space and also the technology and policy which enables this work to occur. When done well, your workplace will be an essential enabler of productivity, innovation, collaboration and community. 

Go deeper than ‘trendy’

As Cindy points out, ping pong tables, bean bags and other workplace design ‘trends’ can often be employed with good intentions, but without sound intentions. The physical design of your workplace needs to dig a little deeper, to support productivity as well as being an enticing employee value proposition and theories based on evidence which takes into consideration the actual health and wellbeing needs of your staff.

“It’s more than just offering hot-desking (or whatever the latest trend may be). It’s about tapping into the visceral nature of what your people need through intentional design,” says Cindy.

Explore more about workplace strategy, the future of work in Australia and how the COVID-19 pandemic has accelerated transformation in the workplace in our ultimate handbook: A progressive leader’s guide to the future of work in Australia.

While new business models, fresh ways of working, and an increasingly tech-enabled ecosystem have shifted the workplace needs of companies(see trend coverage in CBRE Insights & Research and JLL Insights), one thing remains crucial throughout the disruption: the commercial office lease. Global CRE conditions have evolved across investment, office and logistics, with leasing momentum and capital flows improving into 2025 per JLL’s latest global outlook (JLL Global Real Estate Perspective). For current market intelligence and landlord/tenant dynamics, see CBRE Insights & Research.

A commercial lease is a binding agreement between landlord and tenant which sets out both parties’ obligations. The lease spells out terms and clauses for both landlord and tenant, so you, as the tenant, can better understand exactly what you’re entering into. Seeking out advice from trusted partners throughout your entire lease expiry process is smart, but when it comes to commercial office lease, advice from a tenant representative or legal advisor can help to ensure your lease agreement is favourable and fair.

What’s in a commercial lease agreement?

All commercial leases include what is known as ‘essential terms‘. As the name suggests, these terms are essential to the contract and without them, it may not exist at all. Essential terms are things like payment of rent, names of the parties involved and a description of the premises to be leased.

Outside of the essential terms, there are a number of clauses that can be included when it comes to your office lease. In this post, we will unpack six commercial lease clauses you can’t afford to NOT know about.

1. Subletting

The option to sublease part of your property to a third party can be helpful if your company’s space requirements are likely to change over the course of your lease. For example, if your business is downsizing, subletting some of your space can support cash flow by making use of unused floor space.

The option to sublease will need to be written into your lease agreement from the outset. Know that your original lease remains in effect even when a new sublease has been signed.

2. Repairs and maintenance

Maintenance and repair obligations should both be set out in your commercial lease. Generally, as a tenant, you are responsible for the ‘rented premises’ like floors, walls and fixtures, and are therefore required to repair and maintain them during your lease.

On the landlord side, maintenance and repairs to the structural parts of the premises, building systems and common areas like lobbies or the lifts are usually included. Check your lease carefully though as sometimes these items can be inserted under the tenant’s obligations.

3. Ending the lease early

Including a ‘break clause’ allows you to terminate the commercial lease earlier than the specified term. Most break lease clauses include a notice period where you must let your landlord know of your intention to break the lease.

If your lease agreement doesn’t include a break lease clause, and you end up needing to leave your lease earlier than the anticipated term, you may be required to buy out the term of your lease, assign it to a third party or otherwise negotiate an early exit with your landlord.

4. ‘Make good’ clause

A ‘make good’ clause is a standard inclusion in many commercial leases. The make good provision is negotiable but basically requires the tenant to return the premises back to their original condition, regardless of any improvements that have been made during the lease period.

Before you sign on the dotted line, ensure the make good clause is clear for both parties and you understand your obligations at the end of your lease. You’ll need to consider this additional cost when you decide whether to move at the end of your lease.  Given rising re‑fit costs and reduced new‑start pipelines in many markets, make‑good budgeting warrants stress‑testing; cross‑check current cost trends and fit‑out benchmarks in JLL Insights.

Furthermore, complete a thorough condition report including photos and videos of the office at the start of your lease. This will help you to avoid nasty surprises at the end of your lease agreement by providing clear evidence of the original condition of the premises.

5. Rent review

The ‘rent review clause’ explains the process for increasing the rent as the term of the lease proceeds and is common in many commercial leases. The common methods of rent review include:

• ‘Fixed percentage increase review’ that specifies a fixed rent increase on designated dates during the lease term.
• CPI rent review which is directly correlated to movements in the CPI (Consumer Price Index).
• Market rent review that reassess your rent in relation to the state of the financial market.

Ensure you are aware of the type of rent review clause your lease includes and that it suits your business requirements. When negotiating CPI, fixed, or market reviews, anchor your positions to current cycle dynamics and transaction evidence. Macro and sector context is summarized in JLL Global Real Estate Perspective and CBRE’s market reports within CBRE Insights & Research.

6. Option clause

An ‘option clause’ gives the tenant the option to renew their lease at the end of the initial lease term. Usually, the option needs to be exercised within a certain time period (eg. six months before lease expiry), and the tenant must not have breached any terms in the contract during the lease period. An option clause isn’t mandatory, so check your lease before signing. Option value is highly market‑dependent; vacancy, pre‑leasing, and construction pipelines influence leverage, see current market snapshots and pipelines in Colliers Research.

As you can see, a commercial lease is complex and, as a legally binding document, you want to ensure you’ve got all the bases covered. But the lease terms are just one part of the lease expiry process. To negotiate the right terms for your needs, you need to consider every aspect of the process and develop a robust workplace strategy. For more commercial lease advice and to learn more about choosing the right workplace design partner for your strategy, download our free ebook today.

Understanding Commercial Lease Terms That Matter

The Importance of a Solid Commercial Lease Agreement

A commercial lease agreement outlines the terms and conditions between a landlord and a business tenant. These commercial lease agreements aren’t just formalities they define how your workplace operates and what you're responsible for. Whether you’re entering a commercial business lease agreement for the first time or reviewing an existing one, it’s essential to understand each section fully.

Working with a consultant or legal advisor can help you evaluate commercial lease agreement terms, identify risks, and ensure the lease works in your favour. It’s one of the smartest investments you can make as a business tenant.

Make Good Clauses and End-of-Lease Conditions

One of the most commonly misunderstood terms in a commercial tenant lease agreement is the make good clause. This clause outlines how the tenant must return the property at the end of lease and it can include significant costs. A clear understanding of both commercial make good obligations and end-of-lease make good expectations is vital before signing any agreement.  For context on market cost pressures, review fit‑out and cost trends within JLL Insights.

A thorough condition report with photos and documentation at the beginning of your lease is a good way to protect your business from future disputes. If you're unclear about what's included in your commercial end of lease obligations, seek advice early in the process.

Reviewing and Negotiating Commercial Lease Terms

Lease terms should never be taken at face value. Whether you're signing a new lease or going through a lease review, take time to examine clauses around maintenance, break options, subletting, and rent increases. Many commercial property lease terms can be negotiated to suit your business goals.

Standard clauses like the break clause commercial lease, commercial lease maintenance clause, or option to renew often have strict notice periods or conditions attached. Know your deadlines and understand how each clause affects your ability to expand, exit, or adapt your space.

Crafting the Right Commercial Lease for Your Business

Every lease agreement business and commercial tenant signs should support long-term strategy. The best commercial lease clauses reflect your company’s priorities whether that’s flexibility, growth, or stability. Customisation of commercial lease terms and conditions ensures your workplace setup aligns with both legal requirements and operational needs.

Even the most standard commercial lease terms can include specific wording that shifts responsibilities, costs, and control. Clarifying your rights and obligations before committing helps avoid unnecessary surprises later on.

Conclusion: Your Lease Shapes Your Workplace Strategy

A commercial lease is more than just paperwork; it's the foundation of your business location. From subletting to rent reviews and making good obligations, understanding your commercial property lease advice is essential.

By taking the time to review your lease agreement commercial in detail, and getting expert guidance when needed, you put your business in the strongest position. For tailored advice on leasing, workplace planning, and office design, reach out to Axiom Workplaces.

Conclusion

A commercial lease is more than just paperwork; it's the foundation of your business location. From subletting to rent reviews and making good obligations, understanding your commercial property lease advice is essential.

By taking the time to review your lease agreement commercial in detail, and getting expert guidance when needed, you put your business in the strongest position. The better you understand your lease terms, the more control you have over your future space.

Further reading and current market references

• CBRE Insights & Research
• JLL Insights
• Cushman & Wakefield Insights
• Colliers Research

Why Choose Axiom Workplaces?

At Axiom Workplaces, we do more than design offices. We support your business at every step of your leasing journey. Whether you’re negotiating a new commercial lease, reviewing your current agreement, or preparing for the end of lease, we’ll help you make smart, informed decisions.

Our team combines leasing insight with workplace design expertise to create spaces that support how your people work now and how they’ll work in the future. We’ll guide you through the process, from lease clauses to layout, ensuring your new space works for your people, your budget, and your business goals.

With Axiom, you don’t just get a fitout, you get a partner who understands the big picture.

Frequently Asked Questions (FAQs)

 

 

“ELMO HQ has realised more connectivity and community engagement than I had ever hoped for.”
Monica Watt, General Manager HR and Admin, ELMO

As one of the fastest-growing HR tech companies in the region, providing innovative cloud HR and payroll technology to more than 1000 organisations across Asia-Pacific, ELMO were quickly outgrowing their space. As well as moving to a more centralised location in the Sydney CBD, ELMO wanted a fit-for-purpose space that would re-energise their employees (or “ELMOnians”, as they’re affectionately called), and help keep the company on its path to growth.

Before Axiom…

Having experienced exponential growth over the past few years, ELMO were fast outgrowing their original headquarters in Bondi Junction. But ELMO didn’t simply want a bigger space – they wanted a space that would truly reflect their personality, culture and values. They wanted a space that would foster connection and collaboration, increase engagement, and also be highly adaptive to each ELMOnian’s preferred way of working.

There was also the added challenge of a relatively short lead time – with ELMO growing so quickly, they only had a timeframe of 12 weeks in which to bring their vision to reality.

Axiom worked closely with ELMO, conducting in-depth workflow and organisational studies to fully understand ELMO’s needs and help them achieve their objectives.

“The Axiom team was great to work with from the commencement,” says Monica Watt, General Manager HR and Admin of ELMO. “They were engaging and responsive to our needs … [and] honest about what they had and had not done. Once they captured our thoughts and concepts … we then worked together to continuously evolve the design. The space is a combination of our ideas and their design magic coming together.”

After Axiom…

One of the most important traits ELMO wanted to cultivate in their new space was connectedness and collaboration. With this in mind, the Axiom team designed a central town hall at the very heart of ELMO’s new home, with tiered seating where employees can gather. This space is connected to a breakout zone on another floor by a staircase, further emphasising the idea of connectedness.

Annelie Xenofontos, Axiom’s Senior Workplace Strategist, explains the team’s approach: “We wanted to connect the Elmonians by creating a vertical village through the two floors. The continuous louvred finish across the two floors achieved that visual connection and was accentuated with the larger cutout in the concrete slab.”

Employee wellbeing was also highly important to ELMO, with the attraction and retention of top talent being a key objective of the new office. To that end, the design included a café and community space where staff can relax and socialise, and a wellness room where they can practise yoga and meditation. As per ELMO’s request, the meeting rooms were also placed at the core of the design, to ensure that employees could be seated close to natural light.

“I love that every day from morning through to afternoon, I see our people enjoying a cuppa, working, talking, and sharing the space. There is a spot for everyone and everything,” says Watt.

To reflect ELMO’s growth and maturation, a new colour scheme was devised, keeping true to the company’s history and evolution while showing the company’s progressiveness and innovation. The use of green and greenery throughout makes the space feel calm and inviting.

Axiom also future-proofed the new HQ, ensuring it is flexible enough to incorporate more employees as the company continues to go from strength to strength.

“The greatest success was hearing the oohs and ahs from our people. I will be honest, I was overwhelmed with various emotions on day one – I sat on the tiered seats and just watched the people enjoying their new space,” says Watt. “I am in awe of what we have created and the opportunity it presents.”

At a glance…

• Increased connectedness and collaboration achieved
• Emphasis on employee wellbeing
• Flexibility to adapt to continuing growth
• Design successfully developed and implemented in just 12 weeks

Ready for Axiom to work some design magic on your current or new office space? Book a free consultation to see what we can do for you.