Average weekly - 49%
Peak Day - Wednesday 59%
Slow Day - Monday & Friday 28%
The steady return to the office continues despite repeated claims that the office industry will be greatly impacted. In the 25 years before COVID, over 5 million sq ft of office space in the region had been torn down and replaced by new residential construction as a normal industry trend driven by real estate economics. The degree to which that continues will depend on many factors some of which are well described in the Articles of Interest below.
The data tells us that well over 90% of employees are attending the office to some degree every month, few are working exclusively remotely. The question remains. “What will be the new normal for in-office work”? Remote work was 5% before COVID, it currently sits at 50% and slowly but steadily declining, where will it level off?
The next Index is scheduled for week of June 21st, 2023.
Your SRRA Team,
Links to Articles of Interest
Next Gen Out of Step with Majority on Desire for Remote Work
According to a survey released by the Diversity Institute and Environics Institute, most office staff working remotely in Canada prefer the arrangement – and the percentage in favour actually increased year over year. While a significant number of those surveyed claim to have changed jobs to ones that favour remote work, younger workers, those with disabilities and Indigenous workers reported concerns about isolation linked to working from home.
https://fsc-ccf.ca/research/the-shift-to-remote-work/
Top U.S. Employers ‘Calling workers back 4 days a week’
Blackrock joins JP Morgan and Morgan Stanley in saying ‘enough is enough’ with respect to remote work. Blackrock recently announced that their employees will be required to be present in the office at least four days a week. In what some see as a surprising turn of events given the perception that employers – particularly those in large metros like New York – may have surrendered the initiative, workers now say that going back five days a week – that is, a return to the pre-pandemic status quo – is likely to be fiercely resisted.
CBRE Survey: Hybrid Well Established in the U.S. but Large Survey Says 65% of Companies Require Some Face Time in the Office
The bar graphs in this article are revealing. Company requirements to be in the office are most pronounced in the financial services sector. As often mentioned, no one survey captures things accurately. “Office sentiment remains divided: 45% of respondents want mostly in-person work, up from 37% in 2022, while 22% want a mostly remote work schedule, up from 15% last year,” this latest survey notes.
When Alarms Sounded, Listen for the Echo
The recent Altus report about the demise of office space in Canada’s downtowns left many experts scratching their heads, the article below is a good example of how a dramatic set of findings can gain a life of their own which may be misleading…
CUI Report and Avison Yonge Identifies Potential for Office Conversions
Although many are calling for office conversions to residential there are two key criteria to successful conversions are that buildings should be ‘small’ and ‘old’ –
This was confirmed in another recent report, this one from Avison Young.
Remote Workers Who Have Another Job on the Side: Trending Upwards?
According to a wide-scale study conducted by consulting firm Deloitte, 46% of polled Generation Z workers and 37% of millennials said that they worked a second part-time or even full-time job in tandem to their main work.
https://www.thestreet.com/employment/how-many-people-work-side-hustles
Finding the Balance in Deciding the Right Path on the Ideal Workplace Remains a Challenge
This long quote says it all: “Battle lines have been drawn between the RTO and WFH camps. Some executives stand on their soapboxes and insist that the creative process happens only over the literal watercooler. Workers say that flexibility is a right and the most productive way forward. Ironically enough, both groups are leaning toward similar policies, with many requiring three days a week in the office and approving two from home. Even the extreme butts-in-seats chief executives often now push for 80% time in, not 100%.”
https://fortune.com/2023/05/30/return-to-office-wars-stalemate-flexible-future-work-means/amp/
When the C-Suite Reverses Course, Look Out for Disgruntled Employees
A major U.S. insurance company is in trouble with its workforce over a 180 decision on remote work that has left employees fuming. Hard to imagine CEOs in Canada taking this kind of risk.
https://fortune.com/2023/06/06/farmers-insurance-remote-work-protests/amp/
Hybrid With Us for the Long Haul?
Hybrid working is not a pandemic-related aberration, the boss of a human resources company has insisted. “Hybrid work will stay with us for ever,” said Ronni Zehavi, chief executive of HiBob,
https://www.egi.co.uk/news/hybrid-working-here-to-stay-says-hr-boss/
What..Me Worry? Shades of Mad Magazine
Deloitte’s 2023 Gen Z and Millennial Survey shows that younger workers are aware of potential downsides of not being present in the office. But they don’t care.
Sky is Falling for the Office Sector Report Claims
With apocalyptic metrics like “enough empty office space to fill 89 Rogers Centres,” these authors are ready to signal radical changes to Canadian downtowns as a result of millions of square feet of vacancies. Citing a few isolated examples of successful office to residential conversions the authors call for municipal intervention to overcome myriad challenges to getting conversions done. One useful insight however reflects the value in acknowledging the needs of women and others who have been able to take advantage of the shift in working conditions during the pandemic.
https://www.theglobeandmail.com/business/commentary/article-empty-offices-downtown-canada/
“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],”