Occupancy Index - October 1, 2022

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The long-awaited return to the office post Labour Day is revealing.  The weekly average of people in office working is now 34%, but we believe that close to 50% of office workers are in the office at least one day a week. We “estimate” this figure because data is from a limited number of employers reporting daily attendance.

We will continue to monitor this important data point throughout the Fall as employers and employees continue to struggle with the operational realities of the partial in office work week. Enjoy the links below.     

Your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Rethinking the workplace environment? Nokia’s bold plans to reshape Canada’s largest tech park promise to foster a better understanding of the essential role of ‘place’ in corporate decision making – with lessons for communities across the country. Kanata North in Ottawa has long been associated with the global success of companies like Mitel and Newbridge Networks, founded by serial software billionaire Terry Matthews. Since its founding in the 1960s, Kanata North has grown to accommodate 30,000 jobs employed in more than 500 companies.

Now, a combination of massive private sector investment, led by Nokia, and a decision by the City of Ottawa to designate the area as an ‘innovation district,’ show that when companies are prepared to invest massively to make promises about the future of work come true, the sky’s the limit. To its credit, the City has opened up the zoning to accommodate significant residential development, with Nokia alone committing to 11 towers and a major expansion of its existing office footprint. As with East Harbour in Toronto, a single land owner will have the ability to offset rising property values typically associated with condo vs office. While observers expect height restrictions to be overcome, the local business association is more concerned about protecting the area as the hub of a massive network of greenspace that extends well beyond the tech park’s borders. Unsurprisingly, Sir Terry is one of the most vocal advocates, convinced that attracting and retaining the best talent is inextricably linked to the quality of working life and his continuing investment in Kanata North as the future of 5G.

https://www.kanatanetworker.com/nokia-proposes-new-office-rd-campus-residential-towers-in-kanata-north/ + https://www.kanatanorthba.com/wp-content/uploads/2021/01/Kanata-North-Final-Report_13-January-2021.pdf + https://twitter.com/OurKanatasGreen/status/1526607255961063425

How much influence do reports from the U.S. on return to the office trends there affect decisions and opinion north of the border? Hard to say, especially because media on both sides of the border find that tensions between employers and employees over remote and hybrid work, as well as conflicting messages on the level of productivity among those working from home, easy pickings for leading with dramatic headlines. This quote sums up opinion from the C suite: “Executives argue that remote work hurts productivity. A Microsoft survey released last week found that 85% of bosses are less confident that their employees are being productive due to hybrid work.” 

https://fortune.com/2022/09/28/return-to-office-slows-remote-work-from-home-general-motors/amp/

Is fear of recession causing a shift in the power dynamic between employers and workers who are digging in their heels on the right to hybrid/remote work?  The article below is one of several we have seen lately that carry thinly veiled threats from CEOs frustrated with not being able to bring staff back to the office. In anticipation of a recession – which some U.S. economists claim is already here – large companies (usually those with offices in multiple locations across the U.S.) are suggesting that remote workers could be the first to go. Showing up and having one’s face known to decision makers could be a deciding factor, some HR professionals note.

https://www.marketwatch.com/amp/story/more-than-half-of-ceos-consider-workforce-reductions-over-the-next-6-months-and-remote-workers-may-be-the-first-go-to-11664907913

Google’s ‘work from anywhere’ plans suggest that the power dynamic between in-demand workers and their employers continues to evolve. As the article below explains, Google is offering staff the opportunity to choose a month where they can be fully remote – in addition to normal vacation and existing hybrid work arrangements. For example, employees in locales where winter weather is exceptionally dreary could choose to spend a month in the sun provided they meet their work obligations remotely, perhaps even tacked on to regular vacation time. This kind of ‘no cost’ benefit is typical of the hoops employers are willing to endure in order to retain valued employees. A ‘work from anywhere’ initiative assumes that a large percentage of a company’s workforce is productive and engaged. Many examples referred to in these links, however, may be harder to implement in the Canadian oontext, in part because we have fewer companies with large workforces spread across multiple locations.

https://www.inc.com/kelly-main/how-googles-reimagined-work-from-anywhere-policy-gets-staff-back-in-office.html

 “The Occupancy Index is supported by the City of Toronto, Financial District BIA, Bloor-Yorkville BIA, The Waterfront BIA, Downtown Yonge BIA, St Lawrence Market BIA and Toronto Entertainment District 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],”