Comments–
Numerous organizations are attempting to measure the return to the office with cell phone, mobility data and other data which is not specific to the actual number of people working in their office. Although this data is useful when comparing similar cities, Toronto’s office employment market is unique. It dwarfs all other Canadian cities in size and reliance on transit, and its principal businesses are made up of head office, financial services, and new technology companies.
Employees of Toronto’s downtown office buildings are more able to work remotely and save hours in commute time and cost than in other cities across Canada. Similar conditions occur in markets like New York, San Francisco and London UK which are experiencing close to the same levels of in-office work as Toronto’s downtown.
The expectation that the return to the office this Fall would reach 50% of pre-COVID attendance levels did not materialize. Employers in many cases have re-configured policy on in-office work to require a minimum of 3 days a week starting January 2023. If that occurs the Index should reach 50% by the end of January.
Stay safe,
Your SRRA Team
Links to Articles of Interest
Dig beneath the headlines!
Downtown Montreal is back in all respects except that office workers are ‘missing in action.’ Frustrated employers are at odds with staff. Chamber of commerce leaders are not only critical of employers’ laissez faire approach to getting workers back but also the federal government who seem to be intimidated by public service unions. Downtown is also completely different from the rest of the city, with workers showing up in suburban locations in great numbers than in the core. ‘Companies that have their senior staff downtown and meet their stakeholders in person will be the successful ones tha drive downtown forward’ says one consultant.
https://www.theglobeandmail.com/business/article-montreal-downtown-economic-recovery-covid/
Is the pendulum swinging the other way towards making the return to the office mainstream? A survey of LinkedIn posts carried out over the past few months is seeing a decline in the number of jobs advertised as ‘remote’ and commentators quoted in this article go further, suggesting that employers are taking the opportunity of an impending recession to restrict hybrid and variations on remote working. Younger staff in particular seem to have become disillusioned with the ‘freedom’ of remote work, and are expressing a desire to re-engage or in some cases, just engage with colleagues. It would be interesting to see a chart that showed employment numbers by length of tenure: just how many people started new jobs since March 2020 and what is that number in terms of percentage of all office jobs? Reading between the lines it would seem we can expect to see more discussion about the ‘P’ word (‘productivity’) in the coming months.
https://www.bnnbloomberg.ca/work-from-home-trend-may-have-peaked-linkedin-survey-finds-1.1840039
For every signpost pointing one way there is another sending you back down the cul-du-sac!
Recent reports from the U.S. are suggesting that as hybrid schedules get ‘locked in’ there are companies seeking to ‘re-sell’ the space not occupied. A San Francisco firm is seeking to monetize the value of empty seats on the days some employees are working from home. If there are any scriptwriters paying attention to this scenario might we suggest that this is a perfect set up for new sit com!
The office leasing market is never dull and New York is currently proving that this market is nothing if not unpredictable. Recent deal sheets summaries issued by top brokers in New York are reporting massive commitments to large amounts of space in new buildings that will start to appear on the horizon before too long. Quote of the day: “Jumbo city tenants are looking far into the future and not the pandemic past by exploring options and committing to new spaces.” Runner up quote: “Inking deals at $200 per foot has become the old $100 per foot, while $300 per foot has been achieved.”
https://nypost.com/2022/10/29/why-nyc-companies-are-betting-on-big-office-space/
Just when you thought you seen everything: Major developer commits to ‘super-loos’ That’s right. We’re talking about washrooms. As part of a major redevelopment in San Francisco’s port lands, the Tishman company is offering the following: Tishman is also including what it dubbed “superloos,” in order to provide a “premium restroom experience.” “The individual bathrooms will contain a toilet, a vanity and a hand drying station and are meant to serve as a more gender-neutral, hygienic restroom, Tishman Speyer Managing Director Maggie Kadin told TRD.” https://www.bisnow.com/san-francisco/news/office/tishman-speyers-mission-rock-tweaks-office-component-as-office-market-gets-flushed-116245?utm_source=outbound_pub_77&utm_campaign=outbound_issue_62344&utm_content=outbound_link_15&utm_medium=email
Rare intensification proposed for the Danforth. Toronto’s Danforth Avenue has managed to avoid intensification for many decades, shunning the availability of the subway and ‘developable’ sites. ‘We built it and they didn’t come’ could have been the refrain. Things could be changing if a proposed redevelopment at Main and Danforth comes to fruition. In its favour is that existing residential buildings are to be integrated into the new project, with major improvements in public realm.
“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],”