Average weekly - 79%
Peak Day - Wednesday 89%
Low Day - Friday 55%
The ‘Articles of Interest’ section below provides examples of the continuing struggle by employers to reduce remote work and the impact of remote work on converting redundant class “C” office buildings. Repurposing outdated office structures is not new, however, The post COVID environment tends to attribute conversions on remote work. The Articles on this subject all involve buildings which were heading toward conversion before increase of remote work.
The Index, at 79% of in-office work relative to pre-COVID levels, is likely to remain at close to this number throughout the summer. Change in September, if it comes, will likely occur in companies who are substantially below this number currently. Stay tuned…
Your SRRA Team,
Links to Articles of Interest
RBC Sets Tougher Direction for Working in the Office – Minimum Four Days to be Required
Four days in the office will be the new standard for RBC employees, according to sources. Using now familiar code language to describe corporate unhappiness with not having staff visible to management, RBC is said to be changing the game post-Labour Day for employees, who have gotten comfortable working from home. “RBC is a relationship-driven bank and in person, human connection is core to our winning culture,” said a spokesperson. But it is no secret – especially for anyone who has been reading these links since the pandemic defined a new reality for the workplace – that CEO Dave McKay has been itching to make this move. Will other institutions follow RBC’s lead?
What Could Canada Learn from U.K. Experience with Office Conversions?
Just like Canada, the U.K. has a housing crisis, radical responses to which include building on the historic greenbelt around London. What is very different in the U.K., however, is the approach taken to converting redundant office buildings. A new CBRE report details plans for massive increases in the amount of square footage to be converted in London but also in university towns. The most common new uses are life sciences and educational spaces. Residential conversions are way down the list, and most of those are for student residences. Is this a pattern that Canada should pay attention to?
New Eglinton Avenue Condo Tower Replaces Aging 11-storey Office Building
Located mid-block on the north side of Eglinton between Yonge and Mt Pleasant, an area once planned as a growth centre, the building will provide 555 condos, more than half of which will be one-bedroom. Perhaps the recent Statscan finding that nearly 30 per cent of Canadian households are one-person households now was an influence on the unit mix?
U.S. Office Inventory to See More Demolition and Conversion Than New Construction
This could be one of those headlines that we will be remembering in years to come. For the first time this century, according to CBRE, the U.S. market is constructing less office space than is being lost to demolition and conversions. Think back to pre-COVID days, and you may recall that SRRA, with its unique proprietary inventory of the region’s office space, would frequently call attention to situations in Toronto where areas designated for growth were actually losing ground to the relentless move to redevelop lower-ranked office buildings for condos. The value of quality data has never been more important when it comes to spotting important trends.
New York to U.S. Government – Hands Off Funds Supporting Congestion Pricing
The latest round in the fight between New York and the White House over congestion pricing went to New York on points, with a court-ordered ban on attempts to scuttle the MTA’s approach to congestion pricing.
New Renter Survey Results Suggest “Smart” Amenities a Priority
Although the survey covers American renter perspectives, the findings could well be helpful for developers on this side of the border. Priority should be given to things that make places safer, more efficient and comfortable- A majority of prospective renters “now expect smart locks, thermostats, and security cameras as standard in a modern rental.” If amenities like pools and exercise facilities can be found in the neighbourhood, why clutter up the pro forma with things that people don’t really value? What would a comparable Canadian survey show? In Toronto, the list could include fewer parking spots or a willingness to pay more for energy efficiency.
Developers Roll the Dice for Apartments in New York’s Game of Real Estate Monopoly
For fans of the storied board game, Atlantic Avenue has a special connotation – especially for players who like stock up on mortgage-heavy real estate assets. A recent change of heart in Brooklyn zoning regulations is set to replace an entrenched but seedy commercial-industrial corridor with medium-density apartments. Could this influence thinking about replacing employment lands closer to home?
Major Office Tower at Times Square to be Converted to Residential
Taking advantage of the city’s ‘Office Conversion Accelerator’ fund, a million square foot office towner in one of the most visible locations in New York is to be converted to residential. This is seen less as an indictment of office market prospects and more as an example of the city’s real estate Monopoly games as growth shifts to other parts of Manhattan.
New York Decision to Invest a New Bus Terminal Decades in the Making
Any project with a price tag of $10B is bound to attract attention but in a city most often associated with commuter rail and subways, the role of buses is getting a fresh impetus. The current bus terminal has been called “the worst place on planet earth” but the introduction of smart new electric buses helped push support for the project over the finish line (or is that the starting line?).
Congestion solutions continue to be debated
Solutions to congestion are few and far between. John Lorinc that echoes proposals made by SRRA to take advantage of assets hiding in plain sight (like Quick Relief).
“The Occupancy Index is supported by the City of Toronto, Downtown Yonge BIA, and Downtown West BIA. It is a measure of the percentage of office employees returning to the office compared to the number of employees who would normally have come to their offices pre-COVID. For a detailed description of the calculation please contact Iain Dobson at [email protected],”