Occupancy Index - July 1, 2025

Average weekly - 77%

Peak Day - Wednesday 86%

Low Day - Friday 50%

Office leasing activity especially in the “AAA” class buildings has increased in the first 6 months of 2025 which will lead to greater occupancy levels in the Fall. New tenants have already factored in remote work and have adjusted occupancy accordingly. The result of more leased space in the downtown will be higher levels of actual occupancy.

Traditional institutional tenants are planning more in-office work this Fall and, in some cases, this will put pressure on their office space needs. This trend will not immediately impact the Index this summer, but the increased leasing activity will lead to more people coming downtown to work.

This is good news for transit operators, retailers servicing the core and the market for condos. More on this trend throughout the summer.

Enjoy the Articles of Interest below

Your SRRA Team,

Links to Articles of Interest

Hard Questions About Government Responsibilities to Support Ottawa’s Downtown

Governments everywhere have long had a passion for making bold decisions to relocate their employees out of central areas to achieve diversification goals. This is true in the UK, Australia, the EU as well as in Ontario. What we rarely see is government real estate policy creating economic havoc to the extent described in this article. Is Ottawa a situation where government procurement officers with an eye to their balance sheets have been allowed to rule the roost while the mandarins have been focused elsewhere? Even when economic hardship was rife in the UK during COVID, that government’s longstanding policy to “level up” the economies of cities suffering from systematic decline, the UK government never abandoned its fundamental role to the nation’s capital.

Read Article Here.

The Age of Hybrid Work Could be Over According to Fortune 100 CEOs

Just two years ago, only five per cent of CEOs had issued ‘return to work’ mandates. Today, according to the latest survey representing the Fortune 100, that percentage has swung heavily in favour of in-office work, with more than half of CEOs polled on the topic saying that hybrid and variations on the theme were as good as over. In the next six to 12 months, can we anticipate a renewed emphasis on how landlords and employers manage their office space? Underlying and perhaps undermining the views of corporate leaders, until a new equilibrium has been established, articles like these will be accompanied by complaints from workers who can’t find adequate workspace when they return to the office.

Read Article Here.

Momentum Building for More Extensive In-Office Time for “Desk Workers”

As is often the case, Canada’s banks have been slowly and then with more intensity pushing the pendulum back to more employees back in the office. “This desire to have a culture that is more cohesive, and that effectively supports what the business is trying to do strategically,” is just one of the justifications cited in this article. But as noted above, more work will be needed to make sure that workers encounter the right conditions when they do come back to the office. A continuing and a problem that can’t be overcome is that we entered the COVID years without any solid benchmarks of office productivity.

Read Article Here.

 “Research” Showing the Opposite Perspective: Canadian Workers Who Hate Being in the Office Can Always Find Supporters

A curious common denominator applicable to articles and commentary that feature proponents of hybrid and remote work is that individuals chosen to add their thoughts in brief news clips (for example) tend to focus on works for them – not their employer. These comments tend to block out a more nuanced reality, which is that views on levels of productivity depend heavily on the type of work being carried out. This article is interesting because it features employees living and working outside of large centres.

Read Article Here.

Four-Day Work Weeks: Is This the Latest Alternative in the Quest for Improved Productivity?

Four-day weeks have been shown to be effective for essential workers like nurses, emergency workers, and even the people who collect our garbage. The difference between those examples and the philosophy advocated in this article is that the former examples build their four-days around 12-hour shifts. Nevertheless, a multi-country survey with thousands of workers can’t be ignored. Let SRRA know your response to this!

Read Article Here.

 “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],”

Occupancy Index - June 15, 2025

Average weekly - 77%

Peak Day - Wednesday 87%

Low Day - Friday 49%

We have been reporting a levelling off in the last 3 months and it continues. This is not surprising and follows a pattern similar to 2023 and 2024.

Two trends are emerging. Some in-office employees are not spending the entire day in the office choosing to complete tasks at home and travelling during traditional off-peak hours. This trend is not impacting the Index, but it is shifting the flow of commuter travel from traditional hours to earlier in the afternoon and later in the morning.

The second trend, the relaxation of return to the office mandates during the summer is not new either.  We have observed this trend before, however, that was when the Index was much lower and the threat of returning COVID meant that the mandated returns did not fully materialize. This time may be different. Through the summer we will dig deeper into the numbers to see where an increase may occur.

Early June data continues to see a leveling off of in-office work.

Your SRRA Team,

Links to Articles of Interest

Experiments with Remote and Hybrid Work Arrangements to Peter Out Within Three Years – Survey

A new survey of Canadian CEOs by KPMG suggests that most – 83 per cent – expect that their staff will be back in the office five days a week within three years, a massive increase over their views just two years ago, when only 55 per cent were voicing that opinion. The driver, according to the principal researcher, is “office culture” and the desire to preserve (or re-kindle).

Read Article Here.

Foot Traffic in Canada’s Urban Cores Still Below Pre-Pandemic Levels

Trusted data experts Environics have pulled together data from downtowns across Canada and conclude that although more people are coming back to the office, the level of foot traffic overall is still way lower than before the pandemic. In Toronto, where SRRA has been tracking office occupancy for the past five years, showing a steady increase in occupancy over time since March 2020, Environics reports that downtown Toronto foot traffic today is 43 per cent lower than comparable measurements in January 2020.

Read Article Here.

Did We Catch You Napping? Study Suggests We Might Have

Working remotely in the comfort of one’s home has many advantages, but without the stimulation of conversations and interaction with colleagues in the cubicle next door, perhaps taking a quick nap during the workday proves irresistible. The study by Amerisleep concludes that as many as 60 per cent of Gen Z remote workers nod off from time to time, adding up to a whapping nine full days on an annual basis!

Read Article Here.

College Park to Be Re-Imagined with Three “Skyscrapers”

In a first for a promotional article revealing redevelopment plans in downtown Toronto, this article sets out a plan for three “skyscrapers” that anticipate incorporating more than facades into the classic Art Deco College Park without bothering to say that the new towers will be condominiums. Of course they will! More than 2,000 new condos, in fact. The article also failed to say how many storeys are being sought during the approval process under way. They will be “very tall.” No office space is being replaced, according to the article.

Read Article Here.

London’s Office Market Shows Signs of Recovery

Although there is still lots of space available, the laws of supply and demand are being revealed to still be functional according to experts, who reference changing interest rates as a key factor. An important indicator of change, they say, is the revival of rents for B class space.

Read Article Here.

 Energy Targets Likely to be Missed in UK’s Office Market

Minimum Energy Efficiency Standards (MEES) established by the government to require landlords to upgrade their buildings will not be met, according to latest estimates. In addition to costs of compliance in a tough office market, much of the UK’s stock is ill-suited to accept modern standards.

Read Article Here.

 Cat Got Your Tongue? Study Suggests Having an Office Cat Keeps Workers Happier

The original reason for keeping a cat in the office was probably linked to keeping rodents and pests under control. These days the driver may be improved mental health!

Read Article Here.

 “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],”

Occupancy Index - June 1, 2025

Average weekly - 78%

Peak Day - Wednesday 87%

Low Day - Friday 52%

The index is beginning to show signs of levelling in the last 3 months. Ridership on the downtown subway line 1, is also showing signs of leveling off. While ridership elsewhere is almost back to pre-COVID use. More importantly, time spend in the office during the workday has become more irregular. People are either coming in off or leaving during nontraditional peak traffic hours. The old 9-to-5 norm is clearly changing as a result of flexible time in the office. This is leading to new peak times for auto traffic and subway use.

Hotly debated in recent articles of interest and interviews is the changing approach to remote work in highly competitive financial services sector in urban markets like New York, London, Paris, San Francisco and Toronto especially amongst new workers in the workplace. Expect this trend to heighten as CEOs demand more in-office work putting pressure on more established workers.

Early June data continues to see a leveling off of in-office work.

Your SRRA Team,

Links to Articles of Interest

Canadian Tire and Oxford/OMERS Investment Signals Support for Centrally-Located Offices

Retrofitting existing office space is worthy of a $200M investment, according to Blake Hutchison, president and CEO, OMERS. “This Canadian-led partnership includes a 550,000 square foot, 20-year office lease with CTC, demonstrates the enduring appeal of centrally located, transit-connected workplaces and representing a major investment in Toronto's urban core,” said Hutchison. The redevelopment of 2180 and 2200 Yonge Street represents a combined investment of over $200 million by Canada Square co-owners Oxford and CT REIT. “The two office towers will be retrofitted to deliver 680,000 square feet of highly functional and modernized office space, over 80% of which will be anchored by CTC. Having operated its head office at Canada Square for over 50 years, CTC is also investing to build a next-generation headquarters for thousands of employees,” said Canadian Tire’s president.

Read Article Here.

The Debate Continues: Buyer’s Remorse for Hybrid Work Conditions?

The results of an in-depth survey probing the effectiveness of hybrid work arrangements concludes that the “new normal” isn’t working for many employees and their employers. But many companies that would like to revert to a previous normal where people actually came to work in an office no longer have that option, having let their offices go in the rush to go fully remote. Readers of this space will have seen many swings of the pendulum since March 2020. If, however, you are willing to devote ten minutes to consume yet another article on the topic, we recommend that this could be time well spent. New hires suffer. Collaboration and learning levels drop. Meetings are less effective. The wrong people get promoted. Culture deteriorates. Loyalty/commitment to the firm weakens. People remain socially isolated. The list goes on: but the article also suggests short-term fixes until you can find new office space.

Read Article Here.

Scotiabank the Latest to Bring Workers Back Four Days a Week

For employees in the Greater Toronto Area, the call to return to the office for four days most likely was no surprise. “We know having our teams working together in-person has many benefits — greater collaboration, higher engagement, more career development opportunities and a stronger culture and sense of belonging,” said spokesperson Katie Raskina, in an emailed statement to Benefits Canada.

Read Article Here..

But Consultant Warns that Banks First Need to Re-Establish Quality Office Space

From the desk of someone who knows what he is talking about comes a hard-hitting memo to banker C-Suites. If you’re serious about wanting staff back in the office, ditch hoteling and start creating places people actually want to gather in. “Effective communication is crucial to execution, sustaining a positive work culture and stamping out toxic work behaviours that undercut performance,” suggests the Globe’s columnist – who also happens to be a regulatory compliance consultant and banking historian. He bolsters his own views with reference to a peer-reviewed Harvard study showing a significant drop in productivity linked to hybrid and remote work.

Read Article Here..

Toronto Still Struggling to Make Sense of Employment Lands Conflicts

Advocates for creating affordable housing are storming the procedural barricades, where planners constrained with having to defend policies designed to protect employment lands are increasingly finding their backs against the wall. The latest dispute involves a project proposed for Etobicoke but is complicated by shifting requirements imposed by the province as well as dealing with legacy issues that defined “employment lands” very broadly to include large format retail. A city statement provides an insight into the dilemma. “City Planning balances the provincial direction to protect economically vital employment areas with the City’s housing objectives,” the statement said. “Over the last few years ... staff reviewed over 150 requests for conversion on employment lands and recommended 64 conversions to allow residential uses to Council, which typically have affordable housing requirements.”

Read Article Here.

JP Morgan Confesses to Have Underestimated Its Need for Office Space by 7000 desks

Good news for Canary Wharf: After years of cutting back, the banking behemoth is set to commit to a large swath of new space in one of London’s premier locations.

Read Article Here.

We-Work – a Phoenix Among Real Estate Plays Rises from the Ashes

Two years after its latest flirtation with bankruptcy. We-Work is once again adding locations throughout North America, including Canada. Dubbed the “brand that refused to die,” We-Work is gaining traction as an alternative for companies unwilling to invest in their own real estate.

Read Article Here.

“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],”

Occupancy Index - May 15, 2025

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 to 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?

Read Article Here.

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?

Read Article Here.

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?

Read Article Here.

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.

Read Article Here.

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.

Read Article Here.

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.

Read Article Here.

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?

Read Article Here.

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.

Read Article Here.

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?).

Read Article Here.

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).

Read Article Here.

“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],”

Occupancy Index - May 1, 2025

Average weekly - 78%

Peak Day - Wednesday 89%

Low Day - Friday 50%

Policy governing where you work is maturing in most organizations. The advocates of remote work and those who believe in more in-office work are starting to reach a medium ground. Prior to COVID the estimate of work done remotely by office workers was 5%. Some new economy employers permitted significant percentage of remote work and traditional organizations permitted none.

Based on the data to date, we can see the majority of companies who rely on work done in offices now permitting some remote work on an ongoing basis with the average amount of remote work growing to at least 15% over all companies. That number could easily reach 25%. At 78% the current Index for Toronto indicates the amount of remote work done by office-based employees could become a permanent change from before COVID of over 20%.

 Your SRRA Team,

Links to Articles of Interest

Major Australian Study “Unequivocal” – Working From Home an Overall Benefit

In a study that began before the pandemic, researchers in Australia confirm that employees are happier and more productive when the have the flexibility to work from home. While for some there continues to be debate about productivity, the study found that healthier diets, and a better work-life balance contribute to improved performance and team cohesion.

Read Article Here.

Quotes from a Leading Architectural Practice Worth Considering

“The foundation of a great workplace is its ability to drive productivity. Productivity has changed radically and so the workplace is changing as well. Two of the greatest impacts on the workplace have been the rise of distributed and asynchronous working – trends fuelled by technology and accelerated by the pandemic. No longer do we need to be in the same place at the same time to be working on the same undertaking. We can collaborate on projects in different countries and in different time zones.

Read Article Here.

Politics Aside, National League of Cities Pushing for Investment in Infrastructure

The National League of Cities is already hard at work lobbying Congress for the next round of surface transportation investments to the tune of a trillion dollars.

Read Article Here.

No Substitute for Quality – “Trophy” Office Landlords Not Worried About Tariff Threats

Amid the confusion and doubt, New York’s blue-chip landlords are sending out positive vibes, declaring that their lease deals are solid – owing in large part to the long-term quality of their buildings and premium locations. One hope that similar thoughts are being thought in Toronto’s office market.

Read Article Here.

Toronto’s Future Skyline Taking Shape? New Towers Announced Adjacent to Crosstown

Years from now, keen observers will be able to pick out the route of the Crosstown from the air by spotting a pattern of tall condos built adjacent to the glass box stations. The latest announcement is a 43-storey condo at Caledonia, one of several very tall towers proposed in the neighbourhood, with several likely to top 50+ storeys. A majority of the 600+ units of the latest project will be one-bedroom, calling into question who will be in the market for more shoe boxes in the sky.

Read Article Here.

“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],”

Occupancy Index - April 15, 2025

Average weekly - 78%

Peak Day - Wednesday 87%

Low Day - Friday 51%

We continue to see a trend toward more in-office work.  The economy is suffering from uncertainty and with it more job instability, we are hearing that being present in the office is becoming a hedge against possible job loss. This trend emerged prior to the March break, and we think it is contributing to more in-office work for those who feel their job is at risk. Data through the balance of April confirms this trend.  In the institutional sectors the amount of in-office work has levelled off significantly.

 Your SRRA Team,

Links to Articles of Interest

Controversial Move By London’s Mayor on Greenbelt Could Reverberate in Toronto

Mayor Sadiq Kahn shocked a lot of people last week when he announced plans to permit housing development on London’s Greenbelt, which has been a fixture in the UK’s planning circles since 1947’s Town and Country Planning Act was put in place. Citing a continuing housing crisis, but committing to prioritize brownfield sites, Khan hopes his decision will help the capital complete much needed housing starts. Could this decision encourage similar moves in Toronto?

Read Article Here.

Sign of the Times? Deloitte to Anchor 5th Tower at Hudson Yards

Described as an “accounting and consulting behemoth” in this entertaining article, Deloitte has signed on to lease 800k sq ft of space in the first major project post-pandemic in Hudson Yards. With so much uncertainty permeating the economy, this commitment will no doubt be seen as a welcome article of faith by commercial landlords.

Read Article Here.

More “Deal Signs” on the Horizon?

Two major U.S. commercial brokerages are merging and will take new space in Bethesda MD and Philly while retaining multiple regional offices. Considering that their core business is built around facilitating commercial real estate projects, does this move signal that new office buildings are beginning to be seen as feasible investments?

Read Article Here.

The Other Side of the Office Market Coin…Firm to Focus on Selling Office Assets

This story offers a less optimistic perspective that underscores the growing divide between trophy-quality offices and ‘the also rans.’

Read Article Here.

The Pendulum Swingeth…New Offices in the Pipeline Face Delivery Crunch

Cushman Wakefield is suggesting that demand for grade A office space is greater than supply in Britain’s capital city.

Read Article Here.

CreateTO to Redevelop Body Shop Site with Candy Floss-Inspired Condos

The City of Toronto’s development arm has its sights on building a transit-oriented condo development on city-owned property on Eglinton East, choosing a Vancouver firm to design a colourful differentiator in the condo market. The actual developers selected include Civic Developments, Windmill and Co-Op Housing Federation of Toronto.

Read Article Here.

Oxford Properties to Build One of Canada’s Largest Current Projects

With building heights ranging from 50 to 71 storeys, Oxford is proving to be no shrinking violet as bids to construct a more than 3M sq ft project! The first three towers will be condo – and as of now – a fourth building to follow is purported to be an office tower (although the typical pattern is for promised commercial buildings to be re-zoned years down the road when surprise surprise the market for office fails to materialize.

Read Article Here.

And Now For Something Completely Different…

The late Don Shoup’s classic “The High Cost of Free Parking” managed to elevate the science of parking strategies into our heads. This entertaining review of parking culture in Manhattan confirms many of Shoup’s evidence-based findings but the best is a tale of a company paying someone $10 an hour to reserve parking spots 24-7!

Read Article Here.

“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],”

Occupancy Index - April 1, 2025

Average weekly - 77%

Peak Day - Wednesday 85%

Low Day - Friday 52%

The Index has resumed its upward climb, albeit slowly. Data from the early part of April indicates the trend to returning to the office will continue especially in sectors where a competitive job market exists. In the institutional sectors the amount of in-office work has levelled off significantly. The uncertainty around the economy and the future stability of employment may be having an impact on the amount of in-office work for those at risk. It is too early to tell if this is a lasting trend.

As we stated in the last Index congestion on roads will not abate on its own or as a result of an economic downturn. The City of Toronto has taken well placed steps to mitigate traffic delays, but more work is needed and continues to be a priority. As was stated in our Forum in January significant relief from congestion only comes with more efficient, convenient and reliable transit.

Your SRRA Team,

Links to Articles of Interest

Understanding Post-Pandemic Working Norms – The Results Are In

An international design firm serving the needs of landlords and companies on multiple continents, Gensler’s Global Workplace Survey of more than 16,000 office workers “to better understand the future of work” identifies three key insights: 1) Despite best efforts, little progress has been made to improve the quality of post-pandemic workspaces. “A workplace that doesn’t work is not really a workplace,” the authors conclude. 2) “Only 14% of the global workforce desires a traditional corporate workplace experience. There has been a shift to experiences that feel connected to nature, inspiring, and experimental” – a finding that applies to workers of all ages. 3) A majority of respondents are keen to foster more in-person work. “More than two-thirds (68%) of respondents say that working in the office positively impacts their connection to a shared mission or purpose, a key reason to work together.”

Read Article Here.

Well-Designed High-Density Cities and Public Health Show Solid Links

A new publication focusing on the quality of urban design solutions, “ArchDaily” argues that a money spent on improving quality of life in a well-designed built environment delivers a positive ROI. “In the context of planning for urban living, health extends beyond physical well-being; it includes mental resilience, social connections, and environmental factors, all of which influence daily life. Health issues can be amplified in high-density cities through poor air quality, high stress levels, social isolation, or limited access to green space,” the authors suggest.

Read Article Here.

Big Box Retail Developed Less Than a Decade Ago To Be Replaced By Condos

A big box project developed by Build Toronto only a decade ago, close to the soon to-be-redeveloped Downsview airport site, is to be replaced by a massive cluster of tall condos, with more than 2,000 units (60% of which are one bedroom). Five towers, the tallest of which is said to be 49-storeys, are backed by Insurance giant Manulife as the major investor. Future residents will be able to choose between using the Wilson subway stop or driving on the 401. Less than one third of units suitable for families.

Read Article Here.

Six Massive Towers Proposed for a Small Field in Vaughan

City Park Homes has launched a bid to build six tall towers in a field and ravine site in Vaughan. Originally to be redeveloped through a controversial MZO, the project has since been “scaled back” and will only be “29, 28, 28, 26, 22, and 22 storeys,” though this is considerably taller than the single-family houses that are the nearest neighbours.

Read Article Here.

Questions Raised About Therme’s True Track Record

A recent article in the New York Times puzzles activists seeking information about the future of Ontario Place. The article claims that Therme misrepresented itself to everyone as a successful player in the luxury spa industry, with one not six successful operations. With a Ponzi-like skill, Therme’s reputation appears to be based on sand, not concrete, raising questions about the value and future of long-term leases signed with the province.

Read Article Here.

Foot Traffic Higher for AAA Offices in Manhattan, Lower for the Also-Rans

A new study suggests that there continues to be a great division between the trophy office buildings and older less attractive tenancies in Manhattan. The adage “location location location” is still holding true the study finds, but the qualities that define location are changing.

Read Article Here.

Oops! U.S. Government Accidentally Publishes Secret Plans to Undermine New York’s Congestion Pricing

Although only online briefly, the snafu – a secret memo critiquing strategy to block Manhattan congestion pricing – suggests that the Trump administration is working behind the scenes to kill the scheme.

Read Article Here. 

“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],”

Occupancy Index - March 15, 2025

Average weekly - 76%

Peak Day - Wednesday 85%

Low Day - Friday 51%

The March break is often a time when people take time off with kids and grand kids. The Index clearly reflects that trend in in-office work. Early numbers for April suggests that this will be temporary. The April 15th Index to be published at the beginning of May, will likely show a significant increase in in-office work.

There is little question that job uncertainty is behind more in-office work as we suggested it might be in the last Index. That trend will find its way into the Index late in March or early April. 

Regardless of how the economy fares over the next few months we believe that congestion will not abate and that solutions to moving people and goods and services around the Region continues to be a priority. Look for more on this in the next Forum scheduled for late May.

Your SRRA Team,

Links to Articles of Interest

Derry Road Transit Corridor Proposed in Northern Mississauga

Citing continued demand for better transit on the busy streets of Mississauga, city staff are targeting an east-west higher order transit corridor on Derry Road. Transit supporters are hoping that key projects like this one can be completed far more quickly than the Hurontario LRT project, which like its cousin the Eglington Crosstown, has been plagued by delays. The idea was first broached in 2006, and announced by Metrolinx two years later.
Read Article Here.

TTC Awards $1B (yes, billion) Contract for Capacity Upgrades at Yonge & Bloor

The ambitious project will expand platforms, improve circulation and generally prepare the city to accommodate growth in the TTC network. “KMJV will enter a two-year development phase, during which time the team will develop a design, schedule, methodology and target price proposal for the construction of the project.” The goal is to complete this phase in two years.  

Read Article Here.

Demand for Hydro As Economy Electrifies Leading to Conflicts in Boston

Acknowledging the need to boost hydro capacity in U.S. cities such as Boston may come into conflict with municipal goals for sustainability, local politicians are facing pushback from residents against proposals to create large battery plants in mature neighbourhoods. Residents cite safety concerns after one such plant caught fire earlier this year, not once but twice. Well-publicized fires in electric vehicles that prove challenging to extinguish fuel these worries.

Read Article Here.

U.S. Investors Set to Double Down on Office Conversions

As vacancy rates in anything but Triple AAA territory continues to trouble landlords, Bloomberg is reporting that major U.S. investment funds are building a war chest for the purpose of accelerating the rate of office conversions. The funds would be targeted to larger markets like D.C., New York and Chicago, where the supply of older office buildings is often concentrated in areas that have fallen out of favour.

Read Article Here.

Is Retail Banking Destined for ‘Dodo’ Status?

Although the Dodo, a flightless, peaceful bird once found off the coast of Africa, is now extinct, its name lives on as a shorthand for anything destined to disappear. According to a new survey from the U.S. Federal Deposit Insurance Corporation, the retail bank could soon follow the Dodo into extinction as developers cash in on a wholesale shift to on-line banking. If Canada follows the U.S. trend, look for a shake-up in commercial rents on Main Street, where banks have traditionally provided easy income for developers looking to lease ground floor retail space.

Read Article Here.

Strangest Link Ever? – Ontario Throne Speech Revives Tunnel Under 401

The same government winning plaudits for going to bat for Ontario’s economy included the proposal to construct a 60km road and transit tunnel under Highway 401 in April’s Throne Speech as a solution to Toronto’s chronic congestion. Note that the speech was delivered fully two weeks after April 1.

Read Article Here.

 “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],”

Occupancy Index - February 15th, 2025

Average weekly - 75%

Peak Day - Wednesday 87%

Low Day - Friday 48%

2025 started out being the year when we established a new normal for where people worked and that is starting to unfold. Recently though, serious questions about the immediate future of the economy have trumped that discussion. As one reader of this report pointed out last week, ‘at least we can see the Index showing signs of reaching a plateau’ as it seems to hover around the mid-70s’.

In further interviews, uncertainty in the job market and the economy at large, may drive a higher level of in-office work. The evidence isn’t there yet and we may not see it as we head into the March Break, but the data in April is likely to be very important. Don’t expect much change from the mid to high 70s until then.

The “Articles of Interest” is back. We have included articles about congestion and transit-oriented development (TOD) as a result of your suggestions.

Your SRRA Team,

Links to Articles of Interest

Money Talks. So Does Status. Why Desire to Get Promoted is Driving a Return to the Office

“People missed out on promotions because they weren’t seen,” insists a high-profile Canadian CEO. The bottom line, he suggests is that “workers need to be visible in the office to advance their careers.” He also believes that employers “are becoming more forceful about requiring staff to work in-person.” The CEO in question is in “constant communication with employers such as banks and other financial-services firms. He is hearing that CEOs “want their employees back in-person.”

Read Article Here.

Return to the Office Gaining Momentum Surveys of Canadian CEOs Suggest

Although the headlines usually focus on dramatic statements by high profile companies like Amazon, the reality is that the day-to-day chore of rebuilding company culture by persuading employees that the best results come from in-person collaboration. Surveys of Canadian CEOs suggests that progress is quietly is taking place in many small and medium companies.

Read Article Here.

New York’s Journey With Congestion Pricing Begins…

Much has been said about the pros and cons of congestion pricing as a solution in Toronto. But after years of on again off again decisions on whether to proceed with congestion price in New York the big day has arrived. In anticipation of the launch of congestion pricing in New York City, this article presents a well-balanced outline of what it will mean for commuters and travellers alike in that city. The assumption of course is that there are options for most commuters that are better than paying the charge – underscoring the need for Toronto to keep adding to its transit network.

Read Article Here.

One Manhattan Resident Who Supports a Congestion Charge

Focusing on the post-pandemic impact of increased car traffic – and higher pedestrian casualties – a local says he is willing to pay his share to help deter car trips to one of the world’s busiest core areas. Despite continuing threats to its implementation and the strong likelihood that the incoming president will remove the congestion charge, it was implemented as planned on January 5, 2025.

Read Article Here.

Thinking On Top of the Box to Address Congestion

Swiss engineers have invented a novel way to avoid highway congestion during routine maintenance. With the help of two large trucks, a mobile bridge is put in place to allow traffic to drive up then down while repairs are made below the bridge. So simple but it works!

Read Article Here.

Is Remote Work Being Used to Reward Higher Paid Staff?

A recent study in the U.S. concludes that higher paid workers aspire to and receive a better range of work from home privileges from employers. According to a Stanford economist, days devoted to remote work by lower paid staff have dropped by 16 per cent over the past year while their higher paid colleagues continue to work from home on a more regular basis, with a drop in remote days of only five per cent.

Read Article Here.

Toronto Housing Starts Can’t Match Those in Other Cities

Despite lots of hot air blowing out of Queen’s Park exhorting municipalities and builders to create more housing, the latest cross-country comparison suggests that places like Edmonton are outpacing high priced, constrained economies like Toronto’s.

Read Article Here.

You Can Bring a Horse to Water, But…TOD Not In Longueil’s Future Right Now

A decaying suburban mall sits nearly empty in a community on Montreal’s south shore, frustrating the mayor and others who see it as a golden opportunity to redevelop Complex Cousineau. With a newly constructed light rail connection from the south short to downtown Montreal, demand for housing is inching upwards and sites like this mall are “crying out” for redevelopment says the mayor of Longueil. But the owner won’t even return phone calls to the municipality, telling the Globe that it his right as a property owner to let it sit virtually empty.

Read Article Here.

 “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],”

Occupancy Index - February 1, 2025

Average weekly - 74%

Peak Day - Wednesday 86%

Low Day - Friday 47%

The Index did not move significantly over the holiday season or into the early weeks of January. However, it has shown signs that employers are seeing more in-office work toward the end of January.

This Index features a summary of the 19th Forum conducted on January 24th, 2025, with over ninety partners and associates of SRRA discussing the post COVID Impact of Remote Work on Cities and Congestion.

A summary of the Forum is reprinted below.

The “Articles of Interest” feature returns in the next Index.

Best wishes for a healthy and prosperous New Year.

Your SRRA team

Beyond COVID: Lessons learned from the Occupancy Index and

The Root Causes of Congestion

Strategic Regional Research Alliance held its 19th Forum on 24 January 2025. Partners and guests attended in person and remotely by Zoom. Detailed copies of the Forum Summary are available to members and associates of SRRA. Reprinted below is a summary of the Forum.

Many of the challenges facing the region – housing availability and affordability, road congestion and sub-optimal transit use - existed before COVID and have been accelerated and made more pressing post COVID. A few new issues have arisen that will have a permanent impact.

The Forum concluded that COVID has entrenched some permanent remote work and triggered changes in travel choices and frequency that combine to increase road congestion and commute times.

While remote work is in the process of establishing a ‘new norm,’ there are many well researched evidence-based solutions to mitigating the negative impacts of congestion. What is needed now, is action to implement these solutions.

Here are the summary highlights from each Session.

Session One: The “New Norm” for remote work

The closing of the workplace brought on by COVID has impacted downtown retail businesses, accelerated on-line shopping, refocused transit use and forced employers to rethink the use and configuration of office space.

The return to the office has been steady. Claims during the height of the COVID lock-down about the end of office space have been replaced by a more nuanced application of remote work and an overhaul of many office premises. As of December, the Occupancy Index is at 73%.

At 85% it is reasonable to assume a ‘new norm’ has taken place.

At 85% there will not be a significant drop in demand for offices, retail dependent on office workers will have adjusted and transit operators will have reorganized around new peak hour travel times.

To complete the transition their needs be a heightened emphasis on creating accessible and affordable housing near transportation networks to reduce commute times and support population and employment growth with minimal impact of road use.

Session Two: The Root Causes of Congestion

High density urban regions worldwide have faced congestion on roads for centuries. The Greater Toronto Region is currently plagued by extreme road use and ever-increasing travel times.

Ancient Rome was congested. Nineteenth Century London and New York were congested as are the roads in today’s suburban Paris. Congestion is part of large urban region life, and 21st century cities are no exception to this rule. It is a sign of a City’s attractiveness and success. But the issue is how much is too much and what is the tipping point where congestion has net negative impacts?

The Fundamental Problem with Roads

Successful cities attract people, businesses and other activities, and the growth in population and economic activity will generally be faster than transportation infrastructure supply can keep up with.

Congestion is what engineers call a “non-linear phenomenon.” For quite some time, as traffic volumes increase, delays only increase marginally, as excess capacity is gradually used up. However, there is a “tipping point” beyond which delays increase exponentially and at a much faster rate than the population and associated traffic growth. Toronto passed that “tipping point” some time ago, and we are now very much experiencing the ramifications of rapid growth in time to travel anywhere and at more times of the week.

We can never build enough infrastructure to meet peak demands. This would be both economically and practically infeasible. Thus, successful cities will, inevitably, be congested. The challenge is to build transit alternatives to the road and plan for increased capacity to mitigate the worst consequences of growth. In the 1950s and 1960s the City of Toronto built for the 1980s but stopped adding to rapid transit in the 1970s. This meant subsequent was 100% reliant on roads. The recent investment in new subways and some bus routes has failed to fill this gap. As a result, Toronto will continue to fall behind as the region grows.

Immediate solutions to rising congestion lie in maximizing road capacity for essential services, and traditional modes of travel. But even more important is to maximize the capacity of the existing transit capacity. Action of both fronts needs to be a priority at all levels of government

Links to Articles of Interest

This feature will be continued in the next Index. 

 “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],”

Occupancy Index - December 1, 2024

Average weekly - 73%

Peak Day - Wednesday 86%

Low Day - Friday 44%

REGISTER FOR THE NINETEENTH FORUM

Impact of Remote Work on Cities and Congestion.

Hear experts forecast the future of remote work and solutions for congestion

January 24th 9:30 to 12:30.

Details for registration are available on our website.

November closed out with modest increase in peak day occupancy. As stated in the last Index, December is a month when consistent data is difficult to obtain and the return to the office is normally reduced due to statutory and personal holidays. As a result, we will not publish the Index for the month of December. Late November trends and interviews continue to suggest that the upward trend in occupancy in 2025 will be maintained. The next Index will feature the post holiday data and be published in early February.

Enjoy this week’s Articles of Interest.  

Your SRRA team

Links to Articles of Interest

Money Talks. So Does Status. Why Desire to Get Promoted is Driving a Return to the Office

“People missed out on promotions because they weren’t seen,” insists a high-profile Canadian CEO. The bottom line, he suggests is that “workers need to be visible in the office to advance their careers.”  He also believes that employers “are becoming more forceful about requiring staff to work in-person.” The CEO in question is in “constant communication with employers such as banks and other financial-services firms. He is hearing that CEOs “want their employees back in-person.”

Read Article Here.

Return to the Office Gaining Momentum Surveys of Canadian CEOs Suggest

Although the headlines usually focus on dramatic statements by high profile companies like Amazon, the reality is that the day-to-day chore of rebuilding company culture by persuading employees that the best results come from in-person collaboration. Surveys of Canadian CEOs suggests that progress is quietly is taking place in many small and medium companies.

Read Article Here.

New York’s Journey With Congestion Pricing Begins…

Much has been said about the pros and cons of congestion pricing as a solution in Toronto. But after years of on again off again decisions on whether to proceed with congestion price in New York the big day has arrived. In anticipation of the launch of congestion pricing in New York City, this article presents a well-balanced outline of what it will mean for commuters and travellers alike in that city. The assumption of course is that there are options for most commuters that are better than paying the charge – underscoring the need for Toronto to keep adding to its transit network.

Read Article Here.

One Manhattan Resident Who Supports a Congestion Charge

Focusing on the post-pandemic impact of increased car traffic – and higher pedestrian casualties – a local says he is willing to pay his share to help deter car trips to one of the world’s busiest core areas. Despite continuing threats to its implementation and the strong likelihood that the incoming president will remove the congestion charge, it was implemented as planned on January 5, 2025. (But editors, pleeeease stop referring to Robert Moses as a city planner.)

Read Article Here.

Thinking On Top of the Box to Address Congestion

Swiss engineers have invented a novel way to avoid highway congestion during routine maintenance. With the help of two large trucks, a mobile bridge is put in place to allow traffic to drive up then down while repairs are made below the bridge. So simple but it works!

Read Article Here.

Is Remote Work Being Used to Reward Higher Paid Staff?

A recent study in the U.S. concludes that higher paid workers aspire to and receive a better range of work from home privileges from employers. According to a Stanford economist, days devoted to remote work by lower paid staff have dropped by 16 per cent over the past year while their higher paid colleagues continue to work from home on a more regular basis, with a drop in remote days of only five per cent.

Read Article Here.

Toronto Housing Starts Can’t Match Those in Other Cities

Despite lots of hot air blowing out of Queen’s Park exhorting municipalities and builders to create more housing, the latest cross-country comparison suggests that places like Edmonton are outpacing high priced, constrained economies like Toronto’s.

Read Article Here.

You Can Bring a Horse to Water, But…TOD Not In Longueil’s Future Right Now

A decaying suburban mall sits nearly empty in a community on Montreal’s south shore, frustrating the mayor and others who see it as a golden opportunity to redevelop Complex Cousineau. With a newly constructed light rail connection from the south short to downtown Montreal, demand for housing is inching upwards and sites like this mall are “crying out” for redevelopment says the mayor of Longueil. But the owner won’t even return phone calls to the municipality, telling the Globe that it his right as a property owner to let it sit virtually empty.

Read Article Here.

 “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],”

Occupancy Index - November 15, 2024

Average weekly - 73%

Peak Day - Wednesday 84%

Low Day - Friday 44%

November continues to see a modest increase in the return to the office and we expect the data will confirm that trend into December and the holidays. We will be producing one more Index for the balance of November. In the past December is a month when consistent data is difficult to obtain and the return to the office is normally reduced due to statutory and personal holidays. As a result, we will not publish the Index for the month of December.

We continue to plan a Forum on the 24th of January on the Impact of Remote Work on Cities and Congestion, the two most pressing issues our data providers are requesting. If you are interested and would like to attend and/or comment, please let us know by return email.

Enjoy this week’s Articles of Interest.  

Your SRRA team

Links to Articles of Interest

Be Mindful of the “Human Doom Loop” Caused by Remote Work

Is the Pendulum Swinging Away From Remote Work?

The Globe’s year-end review of commercial real estate prospects is possibly the most optimistic take on the world of office leasing and landlord headaches for quite a while. Tucked into this comprehensive review is news of a KPMG review of Canadian CEOs that suggests working from home may be losing its appeal – at least for those in the C-Suite.

Read Article Here..

Metrolinx Tells Toronto That Momentum for New Stations has been Lost

Smart Track isn’t talked about much these days but amid murmurs that Metrolinx has botched design for the East Harbour station, Mayor Chow was recently informed that key stations are to be “deferred,” a sign that problems with mismanagement of the Crosstown extend further than previously thought.

Read Article Here.

Will Downsview Start to Shift the Centre of Gravity in Toronto?

Plans led by Canada Lands Company and a public pension plan are moving ahead, to bring more customers to one of the underappreciated transit-blessed neighbourhoods in the City. But no indication that this massive project is looking to benefit from district energy to add to the list of potential plusses.

Read Article Here.

Controversial Views on Remote Work – No Smoke Without Fire?

A Silicon Valley exec looked under the hood of his company (and those run by his peers) and concluded that employees working remotely “weren’t actually doing much work.” Citing a stat that suggests more than 90 per cent of U.S. federal workers have not returned to the office, Peter Thiel wonders if the new administration is on to something with respect to productivity problems within the civil service.

Read Article Here.

 “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],”

Occupancy Index - November 1, 2024

Average weekly - 72%

Peak Day - Wednesday 84%

Low Day - Friday 43%

TTC subway ridership growth relative to pre-pandemic levels in the downtown core is recovering well. Union station’s ridership on the subway exceeds pre-pandemic levels by over 8%. This is good news for the TTC and reflects the consistent trend shown in the Occupancy Index. It also mirrors the daily data for Tuesdays, Wednesdays and Thursdays. Subway ridership (over 80% relative to pre-COVID use) exceeds the Occupancy Index during the weekday and is attributable to the growth of residential living and tourism in the heart of the city post COVID.

Through November there appears to be a continued increase in the return to the office. We expect the Index to peak during November with the normal decline in December.

We continue to hear your thoughts on the impact of congestion on the commute and your ideas on solutions. SRRA will conduct a conference on January 24th on the Index and congestion solutions with expert panels on both subjects, please indicate your interest in attending by reply email.

Enjoy this week’s Articles

Your SRRA Team

Links to Articles of Interest

Be Mindful of the “Human Doom Loop” Caused by Remote Work

A thoughtful article from a U.S.-based writer suggests that remote work could be behind a widespread trend towards unhappiness (and anger?) in the U.S. (and not unknown here in Canada). She notes that reliance on virtual therapy vs in-person visits in the U.S. has exploded by more than 2000 per cent since the pandemic – drawing a straight line between this arcane stat, remote work and the mood of the country.

Read Article Here.

Virtual Villages for Digital Nomads – Save on Commuting Costs But What Price Office Culture?

Communities built up around the notion that “digital nomads” who have fled big city office jobs need decent co-working spaces with good internet and support to find housing are actually “a thing” according to Wired magazine. This must be the ultimate product for the “me” generation. Guess company leaders are on their own when seeking to build a company culture.

Read Article Here.

Mayor of Paris Takes on Heavyweight Cars but Excuses EVs

Mayor Anne Hildago, of 15-minute city fame, is no shrinking violet when it comes to disrupting the status quo. Having originally backed e-scooters she subsequently looked at data showing accident rates involving pedestrians and yanked support for scooter rentals. Her latest move involves upping the cost of parking for SUVs and other “overweight” vehicles (known in the UK as Chelsea Tractors). But she has had to bend her principles slightly, giving a break to EVs, known to be heavier than gasoline cars. Meanwhile her efforts to install cycling infrastructure appear to be paying off with congestion levels in the city of light dramatically down.

Read Article Here.

Give Thanks to Public Transit Urges Bloomberg

With a different take on America’s Thanksgiving Holiday, Bloomberg news quotes a philosopher to underscore the value of public transit. “Hell is other people,” Sartre wrote, and public transit serves them up aplenty, but chance encounters with unfamiliar folk are the joy of cities. Be thankful.” For Torontonians fed up with gridlock it is worth remembering a time when Toronto was a must-visit place for transportation experts keen to understand the secret sauce that (at the time) was keeping the city moving.

Read Article Here.

Future of Less Competitive Office Buildings Called into Question

Owners of class B and C level office buildings are feeling the pinch when it comes to holding on to tenants, let alone attracting new ones. This is the tale of one landlord convinced that investments in new amenities and other upgrades to the well-located 121 King Street W will show dividends. “Encouraging a return to office” was Max Rosenfeld’s motivation for acquiring and then investing in this 1980s office building. But in the face of stubborn high vacancy rates brokers are wondering about the future of other older properties in downtown Toronto and elsewhere needing to compete with shiny new assets.

 Read Article Here.

Peter Principle Alive and Well as Verster Leaves for a New Rail Job

Phil Verster CEO of Metrolinx has been recruited for a top job elsewhere, leaving the Crosstown still without an opening date, as well as other criticisms, that include a lack of transparency over how decisions are communicated. Michael Lindsay is stepping in to run things until a new CEO is found.

Read Article Here.

 “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],”

Occupancy Index - October 15, 2024

Average weekly - 72

Peak Day - Wednesday 83%

Low Day - Friday 41%

Thanksgiving through Christmas marks a busy time for business. The Index continues to monitor more attendance in offices downtown. The Articles of Interest, this week, reflect strengthening commercial office market trends. Issues raised during the height of COVID, ‘do we need office space’ and ‘the conversion frenzy’ are beginning to wane as markets recover and employees are spending more and more time in the office.

Congestion, however, continues to increase in the region largely due to population growth. Political attention on this issue is narrowly focused on the fight over bike lanes when the experts are calling for more attention to improving public transit. More transit use frees up space on our roads a win-win for both drivers and commuters. The low hanging fruit in the region is maximizing and coordinating all our transit networks.

Stay tuned for an announcement of a conference hosted by SRRA in the New Year on the Index and Congestion Solutions.

Enjoy this week’s Articles

Your SRRA Team

Links to Articles of Interest

Traffic Congestion in Toronto Really Is Getting Worse

International business leaders note that Toronto’s transit system is too small for a city our size. So says the head of the Toronto Region Board of Trade. The Globe commissioned traffic-analytics firm INRIX to review the data: they found that although more commuters are taking transit, travel times for drivers have increased dramatically. Car volumes have not increased significantly since before the pandemic, suggesting that the problem is reduced road capacity due to bottlenecks caused by many more vehicles delivering goods, food, groceries; roads squeezed by construction sites, lengthy repairs to major roads, and poor coordination between “public entities,” different ministries, utilities. An uptick in the size of vehicles doesn’t help, with SUVs and pickup trucks taking up more road space. (Neither does very low average vehicle occupancy.) The region’s top transportation expert, Prof Eric Miller, notes that congestion in major cities is to be expected and can be a sign of “economic health,” but when congestion passes a certain threshold, the impacts can be “detrimental.”

Read Article Here.

The Pendulum Swingeth….

Cushman and Wakefield in the U.S. is taking steps to prepare for a “market turnaround” that anticipates improved prospects for commercial real estate investors.

Read Article Here.

And in the GTA as well?

Avison Young comments on changing dynamics that show positive signs particularly in suburban parts of the GTA. “Workspace density is increasing again,” is the conclusion.

Read Article Here.

But Bid to Cut Red Tape Barrier to Office Conversions Voted Down

Bill 102, which recommended the removal of a section of the Environmental Protection Act (EPA) that exempts changes to building use based on building height, was voted down by the government. A successful amendment to the EPA would have “cut red tape, speeding up conversions by up to two years,” according to its Liberal MPP proponent. According to JLL, downtown Toronto vacancy rates now exceed suburban rates. If the three preceding articles leave your head spinning, get in touch with SRRA’s Iain Dobson ([email protected]) for a reality check!

Read Article Here.

Bait and Switch? 65-storey Condo to Replace 13 Storey Office Building in the Financial District

The applicants describe this 65-storey condo as “mixed use,” but the office component included in an earlier iteration of the proposal that secured approval for a taller building has now been ditched in favour of more condo floors with lower ceiling heights! The applicant is asking for an exemption from the OP requirement to replace office space (a policy currently under review).

Read Article Here.

TMU Launches World’s First “Digitally-enabled building”

Toronto Metropolitan University’s SCITHub will “develop, test, and showcase the full range of smart building technologies to support the homes and offices of the future. There will be three areas of research in the building; smart city technology development, buildings for health and wellness of people and supporting net-zero carbon goals.”

Read Article Here.

Check a Report’s Sponsor Before Deciding…

The following conclusion sounds cut and dried: “Recent research conducted in a real company showed that employees who worked from home three days a week experienced higher satisfaction and lower attrition rates compared with their colleagues who worked from the office. This reduction in turnover saved millions of dollars in recruiting and training costs, thereby increasing profits for the company.”  But this Harvard-inspired research was sponsored by Trip.com whose business model benefits from remote work.

Read Article Here.

Controversy Over Remote Work Productivity Continues

“When a manager says, ‘I need you to come back to the office,’ what they’re really saying is, ‘I lack the ability to work with you remotely.’ It reflects their skills, not your productivity,” says an Australian consultant.

Read Article Here.

This Article Worth Reading If Only To Learn a New Word

The concept being discussed is an idea to treat office space like a full-service hotel. The new word is “amenitized.” Really?

Read Article Here.

“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],”

Occupancy Index - October 1, 2024

Average weekly - 71

Peak Day - Wednesday 81%

Low Day - Friday 41%

The Index is the measure of the number of people who are in the office compared to those who are working remotely, with the exception, of people who are not in the office for reasons such as business travel, holidays, sick days etc. The Index is now at a point where on average employees who have the choice between performing daily work tasks at home or in the office are now in the office 3.5 days a week.

Our data shows that there is a higher number of people who are in the office 5 days a week than attend the office less than 1 day. While mandates to return to the office are still not being adhered to universally, they are having greater impact this Fall. The days employees are attending the office is beginning to balance out as this Index’s data shows. Friday remains the lowest in-office day, but Mondays are showing more activity in downtown Toronto.

Your SRRA team

Links to Articles of Interest

Worldwide perspective on the return to the office:

A city’s density, the size of people’s homes and cultural norms are among the factors that affect hybrid work patterns.

Read Article Here.

Return to Office Enters the Desperation Phase

The next stage of getting workers back at their desks includes incentives like $10 to the charity of their choice — and consequences like poor performance evaluations if they don’t make the trek in.

Read Article Here.

Public service union's court challenge of return-to-office order will proceed

A Federal Court judge has ordered a full hearing be held in the Public Service Alliance of Canada's challenge to the federal government's return-to-office directive.

On Thursday, Justice Glennys L. McVeigh dismissed the federal government's attempts to quash or halt the challenge, saying both sides needed to argue the matter based on a full record

Read Article Here.

Workplaces getting creative in trying to lure staff back into the office with extra leave, free lunch and more

Employers are stepping up their game — and offering creative perks — to entice staff back into the office. Some measures on offer include extra annual leave, kombucha on tap, free food, a virtual golf course and tennis lessons.

Read Article Here.

90% of companies say they’ll return to the office by the end of 2024—but the 5-day commute is ‘dead,’ experts say

The debate over whether or not to return to the office is far from settled — and yet, the push to get employees back to the office is getting more aggressive.

Read Article Here.

“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],”

Occupancy Index - September 15, 2024

Average weekly - 69%

Peak Day - Wednesday 79%

Low Day - Friday 39%

We are often asked ‘how does the Occupancy Index in Toronto compare with other cities’? While that is difficult to research accurately due to the lack of comparable data, a group in London has put together a data rich analysis which is part of this weeks Articles of Interest below.

The trend is clearly toward more in-office work particularly for organizations who are competing globally in rapidly growing and competitive industries. The week is beginning to balance out as this Index’s data shows. Friday remains the lowest in office day, but Mondays are showing more activity in downtown Toronto.

Look forward to both of these trends continuing.

Your SRRA team

Links to Articles of Interest

London & Toronto Lag Behind Paris Singapore and New York Returning to the Office:

A comprehensive, data-rich report by Centre for Cities in London on office presence levels shows that London trails its international competitors. Far behind Paris. Off the pace with respect to Singapore and New York. And just ahead of Sydney.  Toronto compares with London with slightly less in office work. Citing the many disadvantages associated with low levels of attendance, the report calls for the mayor and national leaders in Britain to get behind less remote work and help to shift attitudes in order to get those numbers up. Is there a message here for Toronto?

Read Article Here.

BMO and TD To Invest in Training Facilities in Downtown Toronto

The cost – and opportunity cost – isn’t trivial, so the decision of two major banks to target the need to train and re-train their employees as a way to promote employee retention is worth noting. In the case, the company has opted for a new facility downtown over a hard to reach suburban location that was unpopular with staff. With a 500-seat auditorium, look for BMO to mimic the success of the Globe and Mail in creating a state of the art facility for hire.

PwC Report Throws Cold Water on Idea that In-office Presence Builds Company Culture

Myth Busters! One of North America’s top consultancies surveyed company leaders (mostly in the U.S.) and concludes that being present in the office helps build and improve company culture is a worthless idea. No word from leaders who dispute that.

Read Article Here.

KPMG Goes in the Other Direction – Hybrid Work On Its Last Legs Say CEOs

Then there’s the views expressed in a KPMG report that suggests that hybrid work has a three year shelf life. While that could be wishful thinking, this report underscores how it is possible to present diametrically opposed opinions depending how you ask the questions.

Read Article Here.

Ontario Government Decides to Purchase Underutilized Office Buildings in Toronto

Causing experts to scratch their heads, the provincial government is contracting to purchase an unspecified number of well-located office buildings in downtown Toronto. No mention of conversion potential but efficiency of government operations cited.

Read Article Here.

London Ontario Offices Suffering High Vacancy Rates

More than three quarters of London’s office inventory is in the downtown, in part thanks to supportive planning policies, but with vacancies at more than 30 per cent in downtown, city officials and landlords alike are getting concerned, blaming post-COVID trends to reducing company footprints when office leases expire.

Read Article Here.

AI Trendsetters Take a Stake in Manhattan

The rapid spread of AI in almost everything we do took another step forward recently when OpenAI chose Manhattan as its first “urban” stronghold on the East coast. No word on where the “model training” will take place and any impact on the hydro bill.

Read Article Here.

“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],”

Occupancy Index - September 1, 2024

Average weekly - 67%

Peak Day - Wednesday 78%

Low Day - Friday 35%

The slow down in the return to the office in the summer comes as no surprise. Early data in September, however, has some interesting new developments. Most notably the increase in both Mondays and Fridays, we expect to report more on this in the next Index.

Companies are beginning to implement policies with a noticeable increase in in-office work and the data is beginning to show that. The number one objection to returning to the office we are observing is the length of time it takes to commute. Road blockages, due to construction, maintenance and other factors are central to the conversation in the news today.

This is only part of the problem. Transit operators are increasingly challenged to provide better service a critical component of the commute.  More transit use less congestion on the roads.  Please feel free to send in your comments and thoughts on these important challenges facing the region. They will be treated in confidence and will contribute to the research SRRA is conducting on solutions.

Your SRRA team

Links to Articles of Interest

Globe Columnist Skewers Public Service Union for Its Stance on Remote Work

“Okay, team, what’s the best way to make the case that we shouldn’t go back to the office, two years after everyone else did?  .... Why don’t we call for a boycott of Ottawa small businesses that are still trying to scrape themselves off the pavement after COVID-19 shutdowns, the convoy siege and the abandonment of downtown?” “This tone-deaf and spiteful campaign got the blowback it deserved. A day later, PSAC changed the post, replacing “Buy nothing” with “Buy local,” but what were they thinking?

Read Article Here.

Special Delivery! Amazon Ramps Up Requirement for Attendance to Office

Three days didn’t do it for Amazon’s management team. CEO Andy Jassy stated that “The change is necessary to “invent, collaborate and be connected.” Other moves include modifying the ratio of managers to “contributors” and getting rid of the provision that allowed employees to work from anywhere four months of a year.

Read Article Here.

Has Toronto Lost Its Way? Better Transit Seen as One of the Necessary Fixes

While praising Toronto’s many strengths, this spirited opinion piece also cites a growing reputation as one of the most congested, least efficient downtown on the planet. The city’s “Dysfunctional public transit and traffic have become synonymous with Toronto.” This is a problem.

Read Article Here.

Amid Confusion Over The One, Pinnacle’s SkyTower Project On Track to be Tallest Yet

With 2,500 condos, 1.5M office space and room for a hotel, SkyTower at 1 Yonge Street will eventually be the city’s tallest mixed-use building at 95 storeys. Although The One continues to grow in height, its future is mired in mystery.

Read Article Here.

New York’s Payroll Mobility Tax Might Not Stretch to Cover $65B Investment

The MTA laid down a significant marker to signal the size and scale of the investment needed to upgrade and expand the city’s aging transit system. Officials will be looking to senior levels of government to plug the gap but are taking credit for the bold move to institute a new payroll tax to help fund the MTA’s needs.

Read Article Here.

“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],”

Occupancy Index - August 1, 2024

Average weekly - 68%

Peak Day - Wednesday 77%

Low Day - Friday 38%

The Index has remained steady at or near 67% for most part of the summer. This apparent levelling off of in-office work is consistent with the trends of the past two summers. Looking into the tea leaves we do expect the Index to show peak days over 80% in the near future with a weekly average reaching into the 70% range. Employers have more confidence in a higher amount of office attendance in the Fall.

Congestion continues to paralyze the entire region and impact not only the return to in-office work but mobility for any purpose. Your comments have been coming in steadily and reveal a frustration with mobility in the Region and a concern that not much is being done about it. Road blockages, due to construction, maintenance and other factors mask the reality that roads have a finite capacity in any major city in the world when population densities reach the levels Toronto has experienced for decades now.

The cause of congestion is a result of population intensification, underinvestment in alternatives to the car, and no long-term strategy to move goods and services efficiently. Please feel free to send in your comments and thoughts on these important challenges facing the region. They will be treated in confidence and will contribute to the research SRRA is conducting on solutions.

Your SRRA team

Links to Articles of Interest

Big Brother Overseeing Remote Workers?

A report by Toronto Metropolitan University researchers has found that a staggering 70% of remote workers indicate that they are subject to some kind of electronic surveillance from their employers. The impacts of excessive surveillance on an employee’s mental health can be severe, the report concludes. Ontario has begun a process to require written agreements about monitoring, but more attention is needed, the researchers conclude.

Read Article Here.

Pot Calls Kettle Black – Surprising Reversal from the Postal Child for Digital Meetings

To Zoom or not to Zoom. That is the burning question. The company whose video conferencing tools quickly became a verb in common usage during the pandemic has told its staff that they must spend more time in the office to facilitate cohesion and productivity. “We believe that a structured hybrid approach — meaning employees that live near an office need to be onsite two days a week to interact with their teams — is most effective for Zoom," a spokesperson said. A recent report from JLL suggests that 200,000 tech employees in North America and beyond are being called back to the office for two to three days a week. Three times that number in other sectors are facing similar pressures.

Read Article Here.

Citi Ramping Up Campaign to Attack Hybrid Working

In both London and New York, Citi is signalling its growing dissatisfaction with hybrid working, telling staff that it is going to start monitoring building entries at multiple locations. “Staff were told managers will be able to use the data to determine the effectiveness of its hybrid work policy, according to a memo seen by Bloomberg News. Consistent flouters face disciplinary action from bonus adjustments to termination.”

Read Article Here.

Downbeat McKinsey Reports Suggests Hybrid Trends and Negative Impact on Real Estate Could be Permanent.

A new report from global giant McKinsey looks at the performance of 30 “super star cities” around the world and concludes that the impact of hybrid and remote work is affecting everything from retail sales to real estate values. Toronto is not among the cities examined. Underlying factors like inflation are also a factor, although this insight is not captured in the headlines. “Untethered from their offices, residents have left urban cores and shifted their shopping elsewhere,” the authors report. “Foot traffic near stores in metropolitan areas remains 10 to 20 percent below pre-pandemic levels.” The resulting knock-on effects of these trends are thought to undermine asset value, McKinsey concludes.

Read Article Here.

Changing Dynamics Across the Region – Buttonville to Focus on Employment….

Perhaps a surprise, given the plans for residential once contemplated by owner C-F, but with Buttonville’s airport due to close down in a few months, Markham has announced that the site will be zoned for employment uses, not housing. Regardless of the land uses, Buttonville presents a headache for transportation planners as there are no expectations for rapid transit, with only bus options on the table. Nevertheless, with the housing pendulum seemingly directed exclusively to housing in nearly every part of the region, even having a conversation about the need to provide for jobs makes for a pleasant change.

Read Article Here.

….But Elsewhere, Housing Remains the Main Draw

As documented in the article below, many of the region’s retail malls are due to be redeveloped for housing (Square One, Bayview Village, Agincourt, Galleria, Agincourt etc.). The terminology may indicate ‘mixed use,’ but the reality is that most redevelopment proposals are actually ‘residential’ with a minimal smattering of retail at street level to justify the softer sounding ‘mixed use’ sobriquet. Perhaps it is time to re-think our land use terminology? Does it make sense to refer to a 70-storey condo with a bit of ground floor retail as ‘mixed use’? In contrast, Toronto is home to a small number of genuine mixed-use buildings such as Queen’s Quay Terminal, Manulife Centre, and 914-920 Yonge Street. All three have office, residential and retail.

Read Article Here.

Housing Crisis Across North America Driving Canada and U.S. Governments to Intervene

Both Canada’s Prime Minister and the U.S. President announced plans to intervene in the housing market at the end of July – areas that are traditionally the domain of provincial and State governments. Trudeau promises infrastructure and affordable housing dollars, and Biden does the same, while also taking aim at process delays.

Read Article Here.

plus

Read Article Here.

The Well Earning Praise, Expanding the Reach of Deep Lake Water Cooling

A genuine mixed-use project (substantive office uses, significant residential and more than ancillary retail plus green space amenities), the Well is approaching completion at a critical time in the evolution of downtown Toronto. Its proponents believe that the extra care taken with urban design, the provision of amenities and an eye for the quality of working life will help stimulate interest among workers to return to the office. Also important is that the project is built around the latest thinking on the use of energy – with a massive investment in expanding Enwave’s deep lake water cooling network. This will ensure that Allied and investors will be in line to reap a ‘green premium’ in terms of return on investment.

Read Article Here.

Beware Dramatic Story Headlines Fostered by Conflicts of Interest

IWG’s stated mission is to become the world’s leader in helping companies transition to hybrid work.  So, we should not be surprised that a recent IWG survey found that hybrid work is “growing in popularity.” Perhaps a bigger surprise is that Toronto is said to tie with Barcelona as an ideal place to pursue hybrid work. SRRA’s regular summary of articles on the future of work (etc.) strives to provide a balance of viewpoints but we also want to highlight when survey findings are less than objective.

Read Article Here.

Getting From Anywhere in 416 to Anywhere in the 905 By Transit Still a Challenge

A fascinating new interactive map illustrates how getting around the GTA by transit can be a time-consuming enterprise if your origin and destinations are not on a rapid transit route. Read Article Here.

In Praise of Commitment and a Sense of Place: Read This Long Love Letter in Praise of an Extraordinary City Builder

This article will be well worth the ten minutes or so it will take you to read it. The late Richard Ravitch was a visionary New York developer who did all the things that politicians only talk about. He built affordable apartments. He argued for and successfully gained tax increases to be spent on transit. Ravitch even found the time to chair the MTA at a critical point in that institution’s evolution that saw reinvestment in transit when the city was facing bankruptcy. “Mr. Ravitch’s death leaves a void. As he co-wrote last fall, ‘the city faces a bleak future of billions of dollars in lost commercial property tax revenues as companies downsize to meet the needs of employees who may prefer to work at home only a few days a week, or full time.’ At the time, New York City office occupancy was around 40 percent; it has since risen, only to about 50 to 60 percent.” He believed in Manhattan and spent his entire life leading by example to illustrate the importance of place, smart investing and building coalitions of the willing, regardless of political stripe. The author adds: “Successful cities also need moderately wealthy men and women — the small-scale developers, the mid-tier of corporate executives — who are motivated to engage in public service not because they want something like tax credits, but because they are fed up with their own quality of life.” And to adapt the author’s conclusion to Toronto’s situation, does our “precarious balance of locally minded wealthy individuals, civically aware property owners, competitive (provincial) and local politics and nimble, smart policy advocates still exist to steer the city toward bread-and-butter solutions — fiscal soundness, decent transit, continuity of basic public services — rather than quick fixes?”

Read Article Here.

   “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],”

Occupancy Index - June 15, 2024

Average weekly - 67%

Peak Day - Wednesday 77%

Low Day - Friday 36%

Summer is holiday time which in the past has resulted in a plateauing effect on the Occupancy Index. So far, this summer appears to be no exception. In calculating the Index, we have accounted for vacation time, but in previous years we have heard from our data sources that the real reason the Index levels off in the summer is a general relaxation of in-office policies. We will see if that occurs this summer.

 We thought you would be interested in some of the research on congestion that SRRA is conducting. Recently, some public commentators have suggested that more people are driving to work than before COVID causing the intolerable levels of congestion, not only in downtown Toronto but on the highways across the Region. The question is why and what drives these choices. Our research suggests that the problem outside of Toronto’s business district is the lack of alternatives rather than a deliberate decision to drive.

 In downtown, however, surface parking spaces for commuters have been in consistent decline for 25 years, leading to the conclusion that post COVID, a strategy for improving the movement of goods and services would likely have a greater impact on congestion than efforts to further restrict parking. If you have thoughts and or data on this issue, let us know.

 Please feel free to send in your comments and thoughts on these important challenges facing the region. They will be treated in confidence and are very much appreciated.

Your SRRA team

Links to Articles of Interest

Everything Old is New Again. Boston Re-Sets the Clock on Urban Planning

After 70 years of relying on a development-oriented planning system, the Mayor of Boston just announced the creation of a brand-new department that will…wait for it…actually do planning. Her goal is “to make Boston a green and growing city depends on planning together for our brightest future,” Mayor Wu said. The new planning department will have planning and zoning, development review, urban design, and real estate. Should this news be forwarded to Queen’s Park?

Read Article Here.

Meanwhile in Great Britain…

One of the first set of radical changes will be to Britain’s planning system, the new government has said. Changes (more to follow in the next links) include “swift changes to unblock infrastructure and private investment.”

Read Article Here.

Look to the U.S. Market for Resilience. Tales from Weary Execs

Biznow, the ubiquitous newsletter that provides many of the links we share with you on a regular basis, recently updated it coverage of how U.S. real estate execs are handling on-going uncertainties facing office landlords and developers. Our favorite insights are those captured under the heading “Survive till 25” – a group of battle-seasoned who are placing all their bets on it being better next year. Just do not mention the upcoming election.

Read Article Here.

Goldman Sachs: the Worst is Over

Call it bravado but Goldman Sachs is saying office market recovery is on the horizon. To back that up the Organisation for Economic Co-operation and Development's U.S. Composite Business Index is saying much the same thing. What do landlords in Canada say to this?

Read Article Here.

Vancouver to Experiment with a Twist on the Office Conversion Story

Office space glut. Hotel room shortage. This may be a tale that can only be told on the West Coast, but the City of Vancouver is going the extra mile to remove barriers to conversions – relaxing seismic upgrades, other changes to the building code related that acknowledge the communal nature of the product, which is going to be potentially popular with visitors from Asia.

Read Article Here.

Is Toronto Confused About What Makes a Good Neighborhood?

Criticisms of the plan for Villiers Island – which foresees up to 9000 residential units packed into 8.5 ha – are calling the latest iteration of the plan “too timid,” with not enough effort to include “affordable” housing. But let us remember similar complaints about Vancouver’s Olympic Village saw a late-breaking increase in density that some observers now regret. The project’s priority was “sustainability,’ rather than “affordability.” Which legacy does Toronto deserves?

Read Article Here.

   “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],”

Occupancy Index - June 1, 2024

Average weekly - 67%

Peak Day - Wednesday 77%

Low Day - Friday 37%

Office attendance reached two/thirds of pre-pandemic levels for the first time since the outbreak of COVID. This benchmark may very well be the standard throughout the summer. Companies continue to adjust in-office policy to balance culture and productivity with the personal benefits of remote work enjoyed by their employees.

We have received numerous comments about the daily commute. They highlight road congestion as the number one issue, whether is by bike, bus, subway, car hire or personal automobile travel, commute times appear to be rising. More and more of you say it’s a major inhibitor for those who can choose what day tho come to the office or whether to come at all.

SRRA is continuing research on reducing congestion and improving the daily commute. Please feel free to send in your comments and thoughts on these important challenges facing the region. They will be treated in confidence and are very much appreciated.

We will be highlighting some of the research throughout the summer….

Your SRRA team

Links to Articles of Interest

 Check Your Calendar! Yes, it is Indeed 2024 – JPMorgan Chase To Double Its Office Footprint

Perhaps the location is the difference? The planned expansion to accommodate 400 employees is happening in Florida’s West Palm Beach!

Read Article Here.

The GenZ Generation May Be Misunderstood

People born between 1997 and 2012 have been labeled ‘GenZ.’ Experts at UBC point out that this is the generation that “grew up completely in the tech age. They not only are skilled with it but understand how to create it. That makes them critical as developers and researchers,” one expert points out. “Forget about clichéd attempts – like casual Fridays or pizza parties – to support teams and build culture. Gen Z tend to be entrepreneurial, so appeal to their desire to learn and grow in their careers by assessing their needs, having open conversations about what they want and providing them with the tools to get there.” Sounds like a plan.

Read Article Here..

Here’s My Honest Appraisal of the Situation – Appraisal Techniques Under Scrutiny

Building appraisals have traditionally been just another chore in the mix of items that influence property and development decisions. Current market uncertainties are putting a spotlight on the appraisal profession.

Read Article Here.

U.S. Developers Opting for Mass Timber

Claiming that mass timber office buildings are leasing more readily than other more traditional office buildings, the key according to Hines and Howard Hughes Holdings is that mass timber is securing premium rents – even in locations where the rest of the office market is in the doldrums.

Read Article Here.

Ontario Line Budget Skyrockets?

Construction costs for the Ontario Line are already ballooning but is anyone keeping tabs on the costs incurred by businesses affected by construction tangles. Is the Toronto equivalent of the Big Dig? The difference in Boston was that the U.S. government picked up most of the tab. Check out SRRA’s ideas for providing better mobility through “quick relief.”

Read Article Here.

  “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],”