Average weekly - 49%
Peak Day - Wednesday %61
Slow Day - Friday 27%
People often ask, “What does the Index measure?” Simply put, before COVID, 77% of all people employed in offices actually went to the office daily over a five-day week. The other 23% of employees were either on sick leave, vacation, personal days, traveling for work, or working remotely.
The data collected for the Index only counts the number of people coming into the office on a five day a week basis. Therefore, the Index is calculated by dividing the number attending the office currently by the number that attended before COVID.
Should the Index reach 100% that would represent the same number of people who attended the office before COVID, i.e., not counting the normal absences due to reasons referred to above.
The next Index is scheduled for week of June 6 2023.
Links to Articles of Interest
EY Expert Suggests That Pendulum is Swinging Away from Remote Work
Every day sees another perspective on remote and hybrid work – usually with conflicting conclusions – but recent comments from a senior EY consultant appear to be unequivocal. The consultant points to a sharp decline in the popularity of hybrid work across North America. “Remote work – that is, working from home 100% of the time – has moved from being the right of the employee to a benefit or privilege offered by the employer. The pendulum has finally swung back in favour of the employer,” said Darryl Wright, a partner with EY Canada who advises companies on the future of work. In the U.S., a recent Stanford study found that “58 % of American office workers worked on-site full-time, almost 31 per cent had hybrid arrangements, and 11 per cent worked remotely all the time. In January, 2022, by contrast, 25 per cent were hybrid workers and 17 per cent worked fully remotely.”
https://www.theglobeandmail.com/business/article-remote-work-revolution-fail/
The Future of Downtown Toronto: Will We Get Beyond the Current Crisis?
Referencing “COVID-19-induced ridership losses and fewer pedestrians available to patronize downtown businesses, this thoughtful Globe and Mail article suggests that Toronto’s downtown, and the financial district in particular, is “stuck in a partial recovery” that is making it difficult for retailers and restaurants to thrive and causing headaches for office landlords. Extrapolating the impact of empty streets to include public perceptions of reduced safety, Oliver Moore suggests that the area faces “an existential crisis” that could in time impact other parts of the city as the municipality searches for ways to replace lost tax revenue. Grant Humes, executive director of the Financial District BIA (one of the funders of this index) concludes that “some fundamental reassessment around office space demand might be necessary.”
https://www.theglobeandmail.com/canada/article-toronto-downtown-businesses-hybrid-work/
Commercial Lending and Investment Patterns Said to be Affected by Hybrid Work
According to the National Bank, Canada’s big six banks can anticipate lower profits in future as a result of their level of commitment to the commercial real estate sector.
Ten Surprising Facts About the Impact of Remote Work
The following findings won’t be a surprise to regular readers of the Occupancy Index but it is interesting to see how attitudes to remote work are subtly changing among observers and critics. StatsCan data reported by the Star show that only about 25% of Canada’s work force is able to work remotely. Fewer than 16 % work from home while about 10% are ‘hybrid’ – and this is largely confined to desk jobs in larger cities. For workers in that situation, saving on commuting costs may be offset by having to invest in better working set ups at home. In addition, there is a potential downside to productivity gains claimed by remote workers – those who achieve more in their working day get asked to do more, blurring the lines between home life and work life. And as reported in this space before, face time with the boss for those who come to the office is worth a lot when it comes to getting promotions or picked for plum assignments.
Upstairs Downstairs – The Search for Equitable Working Conditions Continues
Britain may still cling to its traditional distinctions between “the classes,” but this article suggests that those who practice ‘executive privilege’ are being advised to put their locational shoulders to the wheel – the same as ‘worker-bees.’
And this sentiment doesn’t just apply over the pond: AT&T is bringing 60,000 managers back to the office (as part of an overall consolidation process). https://www.bisnow.com/national/news/office/att-to-mandate-managers-return-to-office-consolidate-real-estate-118977?utm_source=outbound_pub_5&utm_campaign=outbound_issue_67418&utm_content=outbound_link_2&utm_medium=email
Win Some, Lose Some: How AI Could Shape Demand for New Office Space
IBM, one of the original ‘tech’ firms, which has been shaping workplace trends for many decades, is looking ahead to a time when the application of AI working in concert with human employees, will reduce future demand for office space. The good news perhaps is that the company’s overall requirements for office space will continue to grow, just not quite so rapidly.
The Transamerica Pyramid Tower Getting a Massive Re-investment From New Owners
Anyone who looks down from the top of the Pyramid – arguably San Francisco’s second most recognizable icon – and dismisses the notion that 30% office vacancy rates are a sign of the city’s decline as “total nonsense” is either an incredible optimist or the wisest of investors. Michael Shvo is revamping the 50-year old tower with $400M (U.S.) in high-end upgrades and successfully leasing at higher than ever rates. “It’s one of the most important cities in the country and this is the most important building on the West Coast,” he says. Unphased by a long list of problems (layoffs in the tech industry, the disappearance of traditional retail space, the failure of regional banks, and a slow return to work by office workers), Shvo nevertheless sees his glass as half full.
Queen’s Prof Offers Five Lessons to be Drawn from Current Attachments to Ever-changing Workplace Models
Written in a refreshingly candid way, this Queen’s prof offers practical advice for business leaders looking into the future.
1. Build your talent strategy to meet business needs
2. Keep your strategy simple, usable, and meaningful for your customers (not just a boring powerpoint deck)
3. Make sure your strategy is interconnected (vs a set of separate activities)
4. Measure talent management against business priorities (vs. Leaving progress to chance)
5. Help everyone be accountable for talent (vs thinking it’s just HR’s job)
“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],”