Occupancy Index

Occupancy Index - November 15, 2023

Average weekly - 56%

Peak Day - Wednesday 69%

Slow Day - Friday 33%

There was little change in the Index over the first two weeks of November and only minor change throughout the week. Preliminary data for the balance of November suggests the momentum driving the return to the office, which has been steady throughout the year, has slowed. We do not foresee any significant change until the New Year.

Calculating remote work productivity and understanding the impact of remote work on-office building use remain hot subjects. In the New Year, we expect to have more real data on both these indicators which will help inform a better understanding of the steady-state level of remote work.

Many of you have asked if we adjust the Index for seasonal influences on in-office work. The only adjustment we make is simply not collecting data for the last two weeks of December.

The next Index is scheduled for the week of Dec 17th, 2023. For membership information and how to participate in these events please contact [email protected] 

 Best wishes from the SRRA team.

Links to Articles of Interest

Could Gloomy Prognosis for London re Impact of AI Foretell Toronto’s Future?

Jobs in the finance and insurance sector are the most affected by the adoption of AI, the UK Department for Education’s Unit for Future Skills suggests. London’s high concentration of professional roles thought to be Achilles Heel.

Read Here.

Mixed Signals on the Prospects for Office Real Estate Continue to Clutter Our View of the Future

The office sector is doomed, except when it isn’t. This report on the office apocalypse also points to a boom in Class A buildings, fewer of which are being built, creating a shortage of quality space.

Read Here.

Alternative Data Source Suggests Occupancy in New York Could be as High as 70%

Not surprisingly, the New York Real Estate Board prefers Crain’s ‘industry endorsed’ measure of ‘office visitation’ to that of Kastle (higher by almost 20%). The welcome news is that this issue is sufficiently important to warrant competing efforts to report on the issue. In the meantime, SRRA’s occupancy index continues to win plaudits for its rigour and adaptability.

Read Here.

New Highly Efficient Office Building in London ‘fully leased’

Not too many headlines like this one these days, but this news sends a strong signal that globally competitive markets like London are not only resilient but capturing major new investment. A construction price tag of 1.4B pounds (more than $2B Canadian!) reminds us that massive new office buildings represent a major commitment to a place.

Read Here.

Remote Work Advocate Remains Bullish on Some Metrics, But Cautious on Others

Read Here.

The CEO of a firm founded as “an investment and financial literacy platform for women,” claims that her fast-growing company has thrived with a remote work philosophy, which grew out of practical strategies during COVID such as cost concerns. She points out that women in particularly benefit from flexibility offered by remote work. But in a widely broadcast interview, she admitted that creativity and innovation has taken a hit as a result of remote work.

Architecture Firm Chooses to Design Dedicated Office Space, Rejecting Open Plan Offices

Although geared to the needs of his medium-sized company, this CEO found that returning workers couldn’t function as well in an open-plan environment as the numbers increased. So ‘cozy’ and dedicated space for calls and meetings was his solution.

Read Here

When the Economist Speaks, We Listen

Look for more insights from this venerable publication in the coming months!

Read 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, 2023

Average weekly - 56%

Peak Day - Wednesday 71%

Slow Day - Friday 32%

See the Articles of Interest below for some global perspective on the impact of remote work.

The conflict between the benefits enjoyed by employees staying home and employers’ insistence on more in-office work is increasingly being resolved to serve the interests of both sides. However, the choice for when in-office work is done is increasingly becoming the employer’s choice. Fridays became the default “Remote Work” day in some companies, but we are seeing a trend to returning the in-office work over 5 days. Still, it is too early to predict whether the hybrid week means only 4 days a week in the office or remote work spread out with the final choice depending on many factors. 

The future of office buildings remains a hot subject. But as we have noted before in this commentary, vacancy rates haves not peaked in comparison with other times when vacancy was generated by oversupply and business retrenchment. We will have more on this as we collect data on why some companies are planning to lease less space. 

In our next members only briefings, SRRA will review some of this research and lead a discussion on what it means for the future of remote work and the future of office space. 

For membership information and how to participate in these events please contact [email protected] 

The next Index is scheduled for the week of Dec 4th, 2023.

See the Articles of Interest below for some global perspective on the impact of remote work.

Best wishes from the SRRA team.

Links to Articles of Interest

Return to the Office Mandates Leading to Extreme Rhetoric but Little Clarity

As tech execs in the U.S. flex their corporate muscles to get staff back in the office, the lack of data on either side of the productivity arguments is creating a new layer of confusion. Communication failures in communication in the workplace were once referred to as ‘broken telephone’ problems.

Read Here.

Reading Beyond the Headlines Important (Especially with this one)

A study reported in the Financial Post claims that working from home (survey of more than 500 public companies worldwide) boosts sales by double digits. A different survey by workplace consultant Mercer found that employees back 4 days a week report higher job satisfaction and engagement.

Read Here.

U.S. ‘Office Usage’ on the Rise: Does the Pendulum Swingeth?

Kastle Systems’ Back to Work Barometer reports that more workers are returning to the office in the 10 U.S. cities tracked by the company. Chicago leads the parade at 55% occupancy compared to pre-pandemic figures.

Read Here.

First, the Glass Ceiling, now the Zoom Ceiling

Younger U.K. workers especially are ‘zoomed out’ working remotely. This is affecting performance and career mobility.

Read Here.

Fare Integration Takes the Tim Horton Approach to Public Policy

The Ford government is set to eliminate costly double fares across the GTHA in early 2024. No more ‘double double’ when transferring from GO to TTC and more? Worked for Tim Horton customers so why not?

Read Here.

We Work Failure Will Affect Landlords in Many Cities in North America, UK

What does bankruptcy of WeWork say about demand for such facilities?

Read Here.

Remote Work Spells $uccess for Public companies

A joint Scoop/BSG survey of hundreds of public companies reports that companies that avoid RTW mandates in favour of complete flexibility on when to come to the office earn more revenue, more quickly.

Read Here.

 As Far as The Eye Can See…London’s Skyline Littered with Cranes for New Office Projects

Deloitte has published a highly scientific report on burgeoning office construction activity. Rather than rely on data, Deloitte invested in a new pair of binoculars and went on the roof of their office building. (First published April 1st)

Read 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 - Oct 15, 2023

Average weekly - 55%

Peak Day - Wednesday 71%

Slow Day - Friday 29%

Mondays are beginning to attract more workers to the office while overall the Index shows a continued upward trend for the approximately 450,000 office workers in downtown Toronto.

Productivity claims on both sides of the “value of remote work discussion” are basing their opinions on limited data and often without functionality context. It is becoming evident from our research that remote work will find a place in a company’s policy on where people work. It still isn’t clear, however, how productivity is impacting those decisions.

In our next members only briefings, SRRA will review some of this research and lead a discussion on what it means for the future of remote work.

For membership information and how to participate in these events please contact [email protected]

The next Index is scheduled for the week of Nov 20th, 2023.

See the Articles of Interest below for some global perspective on the impact of remote work.

Best wishes from the SRRA team.

Links to Articles of Interest

Markham’s Chris Rickett Hits It Out of the Proverbial Park

Focusing exclusively on housing, housing, housing may satisfy an itch but it is bad policy. Markham’s economic development director sets us straight on the need for balanced growth that includes planning for jobs.

Read Article Here.

‘Doom Loop’ of Productivity is Major Flaw in Measuring Effectiveness of WFH

Very thoughtful, in-depth review of productivity research that pinpoints lack of training for managers as the weak link in assessing in-office vs WFH – untrained managers give preference to workers they can see in front of them. Could application of SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) goals could level the playing field across sectors?

Read Article Here.

Tower Proposal for Bloor Street to Replace Offices with Tiny Condos

Undeterred by failure of The One, developers propose to replace offices with 78-storey tower, with more than 90% of space as condos, 61% of which will be ‘investor-friendly’ studios and one-bedroom units. Just what is needed in a housing crisis!

Read Article Here.

London Leading Trend for Five Days Back in the Office

Employers with enthusiastic backing from government have been pushing workers to come back full time to the office. Seems to be paying off, according to a new survey, but hybrid still a preference for many. Read Article Here.

Compared to Push for Green, Hybrid Work Could Be Yesterday’s News

When determining tomorrow’s office footprints, Investors, landlords and employers are converging around low carbon as the key driver for change. Will hybrid work increasingly be relegated as priorities focus on ESG?

Read Article Here.

Blackstone – World’s Largest Commercial Property Owner – Resigned to Hybrid Work?

Its billionaire owner feels that remote workers ‘didn’t work as hard’ and saved money on commuting and dressing for success. But Blackstone has reduced office footprint, regardless.

Read Article Here.

Will Next Generation of Office Developers Transition to Building Something Else?

Regional developers in the U.S. are having a tough time, signaling possible shift in focus to developments with lower risk.

Read Article Here.

U.S. Surveys Continue to Rue Long-term Impacts of Remote Work

Citing lack of mentorship and loss of company culture, as well as impacts on person growth for younger employees, employers ‘reaching’ in attempts to lure employees back full-tome.

Read Article Here.

Miami Experiences Continuing Angst Over Return to the Office Mandates

Getting people back to the office is literally the biggest issue right now, say experts. Bribing with perks and focusing on making offices ‘desirable’ the way to go say CEOs.

Read Article Here.

Do Employers Have Ulterior Motives When Pushing Older Workers to Return to the Office?

Is a perceived reluctance on the part of older employees to come back to the office motivating some companies to double-down on return mandates to accelerate retirement rates?

Read Article Here.

Location location location  - You Heard It Here First (or Maybe Not)

A New York Biznow seminar trotted out the usual bromides but one finding stood out. Offices closer to transit see twice as much pedestrian traffic in their vicinity than properties 15 minutes away from transit. What does this mean for occupancy and leasing rates?

Read Article Here.

Quote of the Month: Quiet Cutting is a New Term to Describe Demotion

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 - Oct 1, 2023

Average weekly - 54%

Peak Day - Wednesday 69%

Slow Day - Monday 28%

Research into the impact of remote work on productivity continues to highlight a considerable disagreement. Most studies rely on surveying personal opinion from either the perspective of employees or employers/managers. These research projects often result in widely differing outcomes. Some suggest a 30% increase in productivity others suggest the opposite.

Given that there is very little research on remote work productivity prior to COVID, it isn’t surprising that speculation trumps evidence at this point as there is no baseline to be used for comparison and measurement.

In our next members only briefings, SRRA will review some of this research and lead a discussion on what it means for the future of remote work.

For membership information and how to participate in these events please contact [email protected]

The next Index is scheduled for the week of Nov 6th, 2023.

See the Articles of Interest below for some global perspective on the impact of remote work.

Best wishes from the SRRA team.

Links to Articles of Interest

If You Don’t Like the News on Office Trends, Wait Five Minutes

Just as commentators were ready to write obituaries for Grade ‘B’ offices to get them all converted to other uses, the City of London is reporting a massive revival in this important sector. Torontonians should pay attention!

Read Article Here

.Hiding in Plain Site: Canadian Pension Funds Represent Untapped Resource for Infrastructure Investment

Complaints that Canada lacks funds to invest in infrastructure, including transit and even housing, are barking up the wrong tree according to the former chair of the Montreal Chamber of Commerce. Simple modifications to pension fund mandates would free up billions for investment here at home.

Read Article Here..

‘Old Boys Club’ London Attitudes Impacting ESG Goals Post-COVID

Top women executives in London’s financial sector are leaving the industry in droves, a Parliamentary committee was told, undercutting efforts to promote ESG. Problems range from inequitable pay to concerns over the rollback of flexible work conditions. Does Toronto face a similar problem?

Read Article Here.

Grass Greener in Canada’s Workplaces Survey Finds

Thanks to universal healthcare, employee benefits and social policies like parental leave, Canada tops the list of places around the world considered the best place to work. Remember that next time you’re having a bad day at the office.

Read Article Here.

Office to Residential Conversions: Ambitions Greater Than Reality

With many office markets, including Toronto’s, seeing (slightly) higher than normal vacancies in ‘B’ and ‘C’ office buildings, the push to convert to other uses, particularly residential, continues – even though the reality suggests relatively few buildings are suitable.

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, 2023

Average weekly - 53%

Peak Day - Wednesday 69%

Slow Day - Monday 26%

The Index continues to average up. By September, the mid-week 3-day trend for employees scheduling in-office work continued. Wednesday, the peak day, is at an all time high of 69%.

SRRA is compiling commentary and data from its interviews and research  to determine what changes remote work, induced by the pandemic, will be permanent.  Over the next month we will be publishing highlights of that research.

For members of SRRA, in-depth commentary will start in November and continue through 2024. We invite non-members interested in receiving this commentary to consider joining SRRA

The next Index is scheduled for week of Oct 18th, 2023.

See the Articles of Interest below for some global perspective on the impact of remote work.

Best wishes from the SRRA team.

For membership details contact [email protected]

Links to Articles of Interest

London’s Mayor and Other Leaders Urge Workers to Return to the Office

In what may be the clearest message yet from politicians anywhere to describe the economic fallout and devastating impact of WFH on a downtown economy, London’s mayor, Sadiq Khan, made an impassioned plea late September for “more workers to get back in the office to boost productivity, improve their well-being and get London firing on all cylinders.” Even though the mayor has not always seen eye to eye with the government, his argument was backed by the minister responsible for London, who led “calls for a switch away from working from home, warning a failure to do so may risk the capital losing jobs. Civil servants were also urged to return to Whitehall, with occupancy rates in some departments still just over 50 per cent.” He continued, “Whether it’s younger workers learning from their experienced elders or older hands picking up innovation and new thinking, people need human connection to keep on top of their professional development.” And just in case his message wasn’t sufficiently direct, the minister referenced the common practice of firms based in London to add a premium to salaries to cover higher living costs (“London weighting”). “Don’t be surprised if bosses start to review London weighting instead of paying it to people (working) at home in other parts of the country,” he explained. “Extending that logic, it risks jobs being moved offshore if attendance in the office is not required. So a short-term gain may risk jobs in London.”

Read Article Here

Return of Tourists to London Disguises Loss of Office Workers in the Core

For a former Londoner, the emotional rush from riding one of the world’s busiest underground networks never gets old. My recent visit there was no exception. Nothing compares to the anticipation of standing on the platform of one of the true ‘deep level tube’ lines (Piccadilly, Central, Bakerloo, Jubilee, Victoria line etc) waiting for a train to burst out of a compact 11’ 5” diameter tunnel, delivering an explosive shock of hot air. (The term ‘tube,’ which today applies to the entire underground, derives from the cast-iron or pre-cast concrete rings supporting a circular tube tunnel.) Another experience associated with the tube is the need for riders to manoeuvre around giant suitcases belonging to tourists, who comprise a significant percentage of all trips. TfL officials credit tourism with contributing to three to four million trips on the tube a day. Although overall ridership is now approximately 85% of pre-COVID levels, this percentage disguises the fact that fewer workers coming into the office, and those that do are doing so only in midweek. (Read Article Here)

And Even Newspaper Columnists Are Joining In…

Andrea Rossi is a multi-lingual, Swedish-born CEO of a major financial company in London whose corner office has one of the best views in ‘The City.’ “I get a bit frustrated because on Fridays the whole City is empty.” This complaint is expanded upon by this columnist writing in the Evening Standard, who complains “There is still a bewildering lack of urgency among employers regarding full time in-office working. Many companies still only expect their staff to come to work three days a week — usually Tuesday, Wednesday and Thursday — making a mockery of the working week.” He goes on, “While some banks like Goldman Sachs are encouraging their teams to work five days a week in the office, others are still rather timid. The threat of litigation still plays into this hesitancy, as does the idea that working from home can save a company money, and burnish their cool credentials.” Citing the Evening Standard’s location at Finsbury Square (near Liverpool Street), he acknowledges that midweek the area is buzzing. “From 7am to 8pm, the place is full of people rushing to work, rushing home, and rushing to pubs and bars to fortify themselves in between.” And then, in keeping with true understated British tabloid style, he concludes: “Remote working is killing London. It’s killing trade, killing commerce, and killing the city’s ability to properly get back to work.”

Read Article Here

 WFH Established a Pattern that is Proving Hard to Break

Although the return of visitors is helping boost travel on the tube and buses in central London despite recent fare increases and frequent short strikes, the story on the three main rail networks serving the capital is even more troubling. Southeastern, Southwestern and GoViaThameslink report that WFH continues to affect travel patterns, generating some 22M fewer trips per month than before the pandemic. This has necessitated cuts in service levels, but because workers are choosing to go into the office Tuesday, Wednesday and Thursday, this causes severe overcrowding, which undercuts efforts to woo back commuters the rest of the week! “We see that pattern set now,” the Thameslink CEO says. “People established WFH in a way they never thought possible. We are not seeing that balance change.” For TfL executives, experience with the recently opened Elizabeth line, which offers speedy service through the City and to Canary Wharf, is more hopeful, with travel up by 5M over last year. An interesting impact of WFH is being tracked by the Advanced Travel Partnership, which represents travel agents. Employers are choosing to convene overnight conferences for workers who spend most of their time working remotely to provide much-needed facetime.

Read Article Here

Pershing Square CEO Makes a Pitch for a Remote Work Variant

Capital markets investor Pershing Square has brought back its employees five days a week in the office but with a caveat…during the summer months (July and August) workers can work from anywhere provided they are prepared to be summoned for an all-hands meeting if required.

Read Article Here

Respected Consultancy Offers Grim Assessment of Remote Working Impact

Hybrid work is here to stay. (Attendance 30% below previous norms). The ripple effects of hybrid work are substantial. (Population loss, high vacancy rates in downtown cores etc.) Office and Retail demand will remain subpar. But, Cities and buildings can adapt and thrive by taking hybrid approaches themselves. Priorities might include developing mixed-use neighbourhoods, constructing more adaptable buildings, and designing multiuse office and retail space.

Read Article Here

Controversial Kastle Data Suggests a ‘Bump’ in U.S. Office Attendance Post-Labour Day

Although there are some doubters regarding the Kastle methodology and range of buildings covered in its surveys, landlords will nevertheless be pleased to see a headline that suggests more workers are coming into the office. According to Kastle, the previously flat trend line is pointing up for the first time in months.

Read Article Here

 Differences in Philosophy Point to Why Employers and Employees Can’t Agree on WFH

According to a new report from U.S.-based National Bureau of Economic Research (NBER), discussions about productivity continue to break down over two key points. The first is ‘when does the work day begin?’ When you sign on to Slack, or When you are at your desk? Should any work activity carried out during the commute count when calculating productivity? The second is that employees cannot come to grips with the challenges of managing a remote work force. Then there are disparities related to where you are in the food chain. Worth a read.

Read Article Here

Earnest Attempt to Present a Rational Perspective on WFH

As regular readers of this part of the OI are aware, relatively few articles about WFH (and its variants) offer balanced perspectives. This offering on the platform formerly known as Twitter by The Hill journalist Nick Bloom may be an exception to the rule. Here are his three conclusions following a scan of opinions on the topic. “1) Micro-economic studies: these find small positive impacts of hybrid WFH on productivity, and mixed impacts of fully-remote WFH (negative when it's badly managed, positive when its well-managed). 2) Macro data: this shows US productivity growth accelerated as levels of WFH have jumped, suggesting a positive impact 3) Market data: this reveals massive adoption of WFH by firms globally and mostly favorable feedback from managers, suggesting a positive impact.” (The article that follows this one presents an important twist on these conclusions.)

Read Article Here

Important to Segment Responses to WFH this Columnist Suggests

Without citing specific evidence, this writer (a ‘generations expert’) draws conclusions about WFH from interviews across a spectrum of companies that nevertheless make sense. It is millennials – the generation struggling to balance housing costs, childcare and the like – that are proving most resistant to a return to the office. Meanwhile, the performance of younger GenZ workers is coming under scrutiny as employers discover shortcomings and gaps in their skills at navigating corporate workplaces while working remotely. Companies are resorting to ‘re-onbording’ to try plug the gaps.

Read Article Here

Asia Tops Rate of Return to the Office, with U.S. (and Canada?) Bringing Up the Rear

While office occupancy in the Americas sits at 49% (SRRA data shows a similar average for downtown Toronto), Asia-Pacific office occupancy is 79%, slightly above Europe at 75%, according to data from real estate services firm Jones Lang LaSalle. It points to how US companies, perhaps more so than those in Asia or Europe, are embracing the freedom to choose what they think works for them. The most recent American Time Use Survey showed over a third of American employees worked from home on an average day in 2022.

Read Article Here

This Article Seems to be Deliberately Provoking a Quarrel…

Any opinion piece that includes Cape Breton, N.S., Bathurst, N.B., Prince Rupert, B.C., the Town of Blue Mountains and Timmins, ON., in a long list of more than 100 North American cities including New York, Chicago, Toronto and Montreal to make a dubious point about population and economic decline needs a reality check. But if you care to see what Waterbury, Ct., Youngstown, OH, and Paso, Tx. Look like these days, read on…

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, 2023

Average weekly - 52%

Peak Day - Wednesday 67%

Slow Day - Monday 28%

July continued to be a slow month in the office.

However, there have been signs in the early part of August of potentially higher in-office numbers in September.

See the articles of Interest for some eye-opening research on the impact of remote work.

Otherwise, not unexpectedly, no material change this summer.

The next Index is scheduled for week of Sept 11th, 2023.

Best wishes from the SRRA team.

Links to Articles of Interest

Why the Office Works – A Neuroscientist’s Perspective

This is a must read for anyone seeking to grasp the complexities surrounding the frustrating and often conflicting opinions colouring the current debate about working from home vs being in an office environment. Neuroscientist Professor Ellard conducts research on the connection between human psychology and built environments both real and virtual. He starts his analysis by pointing out that “it has only been in the past three years that we have become obsessed with the most serious question: What is an office for?” His answers – no, this is not a binary question – debunk the views expressed by some of his colleagues. “One systematic review after another will tell you that people seem happier and more balanced with working from home (WFH) and that, if anything, productivity is enhanced. Don’t believe it.” He goes on to suggest that “the evidence shows that most studies purporting to demonstrate the advantages of WFH have simply asked employees how they feel about their level of productivity, rather than measure it directly. Studies that use more finely tuned quantitative measures tend to show that those of us working from home spend more hours working (including the time that we “save” by not having to commute) but are generally a bit less productive than those resident in workplaces.”  Recounting a recent visit to a Suisse office campus where no expense has been spared to create an attractive environment, he notes that “Part of our reluctance to return to the office must surely have come about because so many of our working spaces fail us. If you build it and they don’t come, you’ve built it wrong.”  His conclusion? “Lacklustre buildings make us want to stay home…..There’s no substitute for actually being there.”

Read Article Here

Less Than Objective Opinion Piece by a Self-Described “Office Whisperer”
Although it is common practice for publications to caution that views expressed in “commentary pieces are solely the views of their authors and do not necessarily reflect the opinions the publication, this admonition is stretched to the limit. The author is a consultant who focuses on the benefits of hybrid work. His first sentence sets the tone: “Full-time in-office work is going the way of the dinosaurs.”  Proof “that the relentless, five-days-a-week grind in the office is the worst option for knowledge-work schedules” is attributed to meta-analysis carried out by a researcher at Stanford University who is “the top academic expert on flexible work models.”

Read Article Here

What Happened to the Weekend?

Not talking about the Canadian singer here. This article relates the work of the same researcher cited above, but focuses on a potential downside of working from home – which is that people who slack off during the week have to use their weekends to catch up.

Read Article Here

Stanford Research Paper Finds That WFH Reduces Productivity by 10%

This article also cites Stanford research but doesn’t identify the author, finding that electronic devices like Slack are no substitute for in-person communications. While advocates for a return to the office may be heartened by these findings, when debates about WFH perpetuate extreme positions (all good, vs all bad) this dichotomy will surely cause people who truly want to understand what is going on to tune out.

Read Article Here

Meta Reversal on Remote Work Could Undermine Employee Trust Cautions Harvard Advisor

Perhaps because Meta (back when it was known as Facebook) embraced remote work so confidently, a recent decision by Mark Zuckerberg to revert to strictly enforced hybrid conditions has been heavily criticized. The latest coming from a Harvard-based leadership advisor, who finds that requiring full-time employees to display badges that indicate their location at all times to be overkill, and potentially harmful to morale.

Read Article Here

Lyft CEO Also Pushes Formerly Remote-Working Staffers to Return to the Office

Not unlike the mandarins in Ottawa who reduced the amount of office space early on during the pandemic, Lyft is now having to find ways to accommodate staffers who had previously been working at home after having cut space by half.

 Read Article Here

Then On the Other Hand…

Pret a Manger has said that it is committed to work from home. ‘It’s here to stay’ says the boss.

Read Article Here

Or this from Goldman Sachs…Five Days in the Office is Expected

Financial giants like Goldman Sachs however are dispensing with any suggestion that hybrid is an option…

Read Article Here

But You Can Count on Forbes to Run Counter Trend

Buried in this account of workers moving further out than ever from their office locations (attributable to the WSJ) is a plea for boosting activity in office clusters for the sake of preserving the vitality of downtowns. “If people aren't heading to the office five days a week, what's going to happen to our urban cores?” The predicted impact will be felt by B and C class office buildings, Forbes suggests.

Read Article Here

Philadelphia BID Criticizes the Efficacy of Kastle’s Office Occupancy Barometer

Highly misleading the BID director concludes. A tally of less than 40% occupancy for the City of Brotherly Love’s business district is based on card swipes at only two buildings, the BID complains.

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 - July 15, 2023

Average weekly - 51%

Peak Day - Wednesday 68%

Slow Day - Monday 27%

Summer is usually a slow time for attendance in the office prior to COVID restrictions. Each year we adjust for the seasonal use of vacation time.

Interviews confirm that companies are expecting a surge in attendance in September.

Fridays continue to be the lowest day for in office work while Mondays are catching up to the peak days of Tuesday, Wednesday and Thursday.

The next Index is scheduled for week of Aug 28th, 2023. And will be the last Index to adjust for seasonal vacation time.

Enjoy your summer….

Best wishes from the 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.

https://www.theglobeandmail.com/business/commentary/article-remote-work-electronic-surveillance-survey/#:~:text=About%2032%20per%20cent%20of,%2C%20voice%20and%20iris%20scans).

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.

https://www.bisnow.com/national/news/office/zoom-gives-up-on-remote-work-mandates-some-office-attendance-120120?utm_source=outbound_pub_60&utm_campaign=outbound_issue_69609&utm_content=story&utm_medium=email

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.”

https://www.bloomberg.com/news/articles/2023-07-27/citi-to-track-uk-office-attendance-to-identify-hybrid-holdouts?srnd=premium-europe

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.

https://www.mckinsey.com/mgi/our-research/empty-spaces-and-hybrid-places?s=09#/

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.

https://www.cbc.ca/news/canada/toronto/buttonville-airport-redevelopment-proposal-1.6918182

….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.

https://storeys.com/canada-vancouver-toronto-mall-redevelopments-housing-crisis/

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.

https://www.cbc.ca/news/politics/trudeau-housing-long-term-infrastructure-1.6856234

plus

https://www.bisnow.com/national/news/affordable-housing/biden-administration-rolls-out-plan-to-cut-zoning-and-land-use-red-tape-120000?utm_source=outbound_pub_24&utm_campaign=outbound_issue_69456&utm_content=outbound_link_15&utm_medium=email

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.

https://www.theglobeandmail.com/business/industry-news/property-report/article-torontos-largest-private-construction-project-reimagines-the-office/

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 shouldn’t 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.

https://www.blogto.com/city/2023/08/toronto-ranked-best-city-world-hybrid-workers/

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. https://www.blogto.com/city/2023/08/toronto-transit-map/

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?”

https://www.nytimes.com/2023/07/28/opinion/new-york-city-metro-ravitch.html?unlocked_article_code=6hFvHB0wtBIZ6ycOh_C3Xmg8sCxFBFTKLRTh17uULt3i5CnTneCyelLg3vicehHT77qA65664E6PzcNYMAaal7D3PMX7GjUHmHe2Fb4yEAqkHpYtFQUxIr6F5Sp747Ec5462JJE7tyIx8ox4ev0IgL_tU2GCZ0Hm8vOflunNADx5eEjDJ7Ej17wlHLzhKmrmriT8j4g3GD7K0QPPpXTz53GTbyY7Zj3KD3kVt58ituPXx8KL2FOKFuUMnQr5XtDxNBmY06d6ULg2sw8rmI2NculH7oaXXeZbmUFzTNXCQqmv-LSZIxzHkuSTK5sJCCM0ABRN2pNZYlOr8z-VDBxhrB3SY4eC&smid=em-share

 “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 - July 1, 2023

Average weekly - 52%

Peak Day - Wednesday 66%

Slow Day - Monday 29%

Attendance Mondays started to outperform Friday in June and is continuing to build while Fridays are actually seeing a reduction. Wednesdays are clearly becoming the busiest day while overall attendance continues to climb and has topped 50% for the last 9 weeks.

This may indicate that the default remote days Tuesday, Wednesday and Thursday were driven by employees’ desires. Employers’ concerns over training and employed advancement is not meeting pre-COVID levels. One reason is the poor presence of senior mentors throughout the week. Employers are also concerned that new employees are not being onboarded with the right message, a default to remote work by the employee. The result senior people are being asked to come in more often and at least once on a Monday and occasionally Friday.  

Summer is usually a slow time for attendance in the office due to holidays, but again we have not yet seen a significant drop yet.

The next Index is scheduled for week of Aug 14th, 2023.

Your SRRA Team,

Links to Articles of Interest

Solid Progress on a Return to the Office in New York?

New reports sponsored by the real estate board in New York suggest that more workers are forming predictable patterns of behaviour that result in the same people coming in at the same times (Tuesday through Thursday) on a regular basis. Although still below pre-pandemic levels, observers see these new data as promising in the slog to sustain the downtown economy.

https://www.bisnow.com/new-york/news/office/new-data-shows-manhattan-office-visits-creeping-up-119834?utm_source=outbound_pub_5&utm_campaign=outbound_issue_69097&utm_content=outbound_link_11&utm_medium=email

Doom and Gloom for the TTC with No Prospects for More Funding

This historical perspective traces some of the political choices made in recent decades up to the present to destabilize the TTC’s ability to maintain its previously stellar reputation for reliable, safe, well-maintained operations. Add a bucket of salt perhaps but there is no denying that the corporation has seen better days.

https://torontolife.com/deep-dives/who-broke-the-ttc-inside-torontos-public-transit-disaster/

Time is Money – Shopify Aims to Help Staff Get Serious About Avoiding Unnecessary Meetings

Although Canadians are justly proud of Shopify’s great leap forward in recent years, the fact that most of Shopify’s revenue comes from outside Canada is not well known. One of the driving forces behind the company’s rapid growth is that, with some exceptions, Shopify has relied on virtual connectivity among its internal networks. To ensure that productivity is front and centre to everything its employees do – regardless of which country or countries meeting participants are connecting from – their COO has created a handy calculator tool to emphasize that time is money when it comes to organizing effective meetings. “No one at Shopify would expense a $500 dinner,” Nejatian said in an interview. “But lots and lots of people spend way more than that in meetings without ever making a decision. The goal of this thing is to show you that time is money. If you have to spend it, you think about it.” Another little-known innovation introduced in May is that the company is piloting a return to the office experiment in its remaining Toronto space. Could the pendulum be swinging back to an appreciation of the benefits of collaborating in person? Stay tuned for more on that one.

https://fortune.com/2023/07/12/remote-work-zoom-meeting-shopify-cost-calculator-modern-work-broken/amp/

Remote Work Crackdown in U.S. Linked to Uptick in Office Leasing

Reports from Bloomberg and Wall Street Journal suggest that American companies are pushing employees to commit to spending more time in the office. As this coincides with increased leasing activity many observers are hoping the link may be causal. “In the past few months, language from employers has gotten steadily tougher regarding their preference for staff to work in person, The Wall Street Journal reported. Anecdotal reports from executives and hiring firms about remote work resulting in decreased productivity now have empirical support from government statistics.”

https://www.bisnow.com/national/news/office/office-leasing-q2-jump-remote-work-crackdown-productivity-slip-119788?utm_source=outbound_pub_5&utm_campaign=outbound_issue_68975&utm_content=outbound_link_2&utm_medium=email

McKinsey Report Suggests that Hybrid Work Will Drain Value from Office Portfolios

A new report from management consultants McKinsey Global Institute estimates that the valuation of office portfolios in some of the world’s ‘superstar’ cities could suffer as a result of remote working trends. Toronto was not one of the cities in the survey.

https://www.bisnow.com/national/news/office/hybrid-work-could-erase-800m-in-urban-cre-values-by-2030-119789?utm_source=outbound_pub_5&utm_campaign=outbound_issue_68975&utm_content=outbound_link_5&utm_medium=email

Will the East Crosstown Eventually Become Toronto’s Answer to TOD?

Well-known urban development analyst Stephen Velasco has created a 3-D visualization showing what 30,000 residential units proposed in the Golden Mile area might look like in a corridor that, engineering gods willing, will one day be served by five stations of the Crosstown. With another 9000 units proposed around a GO station further south, these hi-rise neighbourhoods could transform Scarborough but also change the dial on whether TOD can be driven by policy changes.

https://www.blogto.com/real-estate-toronto/2023/07/toronto-entirely-new-skyline/

Shifting Sands in the Office Leasing Business

Landlords have traditionally looked at the financial health of prospective tenants before agreeing to leasing terms, but in the U.S it seems that tenants are now demanding the same right of inspection to determine the long-term viability of landlords – even those with institutional backing.

https://www.bisnow.com/national/news/office/landlord-finances-owners-open-books-119930?utm_source=outbound_pub_5&utm_campaign=outbound_issue_69249&utm_content=outbound_link_1&utm_medium=email

Amazon’s Push to Get Staff Back in the Office Leading to Consolidation of Locations

Amazon has been moving to require more staff to return to the office for some time but recent indications suggest that the company is now taking the next step of consolidating smaller locations into larger ones – which could require employees to relocate in order to hold on to their jobs.

https://www.bisnow.com/national/news/office/amazon-return-to-office-relocating-workers-major-downtown-hubs-119926?utm_source=outbound_pub_5&utm_campaign=outbound_issue_69249&utm_content=outbound_link_4&utm_medium=email

A U.S. Trend Unlikely to Show Up in Toronto

With fare revenues still well short of pre-pandemic levels, the possibility that the TTC would entertain free fares in key areas like downtown is nil to none. But such a proposal would surely get people’s attention.

https://www.msn.com/en-ca/news/us/these-cities-are-ending-fares-on-transit-here-s-why/ar-AA1dB5FD?ocid=entnewsntp&cvid=eb54fa8061fa48019a12e3591c47a237&ei=65

 “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, 2023

Average weekly - 51%

Peak Day - Wednesday 62%

Slow Day - Monday 34%

June continues to find more people returning to the office with a slight increase on Monday and Fridays.  As discussed at the SRRA’s 18th Forum held this past month, exit survey data reveals that the top reasons for people leaving their jobs remain the same as pre-pandemic (career pathing, issues with leadership, compensation and work/life balance).  

Interviews reveal senior people are increasing their time in the office throughout the week to assist in mentoring young and new employees. Employers are developing new and more accurate sources of data on productivity revealing compelling reasons for in-office attendance.

The canary in the coal mine for either the hybrid model or more allowable remote work will be productivity. New data is emerging showing productivity has fallen off since the first 9 months of the pandemic when the emergency application of remote work didn’t initially reduce productivity.

The next Index is scheduled for week of July 26th, 2023.

Your SRRA Team,

Links to Articles of Interest

Power Shift! Emboldened by Layoffs, ‘Tech’ is Mandating a Return to the Office

The Wall Street Journal reports on a new JLL survey that finds major players like Google, Meta and Salesforce have changed their tune on remote work, signaling that employers may “have the upper hand” as they require staff spend more time in the office. As of mid-May, more than half a million workers have received this message, one third of whom are in the tech space.

https://www.bisnow.com/national/news/office/once-a-pioneer-in-remote-friendly-work-tech-gets-strict-about-rto-119477?utm_source=outbound_pub_77&utm_campaign=outbound_issue_68520&utm_content=outbound_link_1&utm_medium=email

and Disney reports calling workers back for four out of five days. https://www.bloomberg.com/news/articles/2023-06-16/working-from-home-becomes-a-once-a-week-treat-for-more-office-goers?srnd=premium-europe#xj4y7vzkg

Or the alternative! Remote Work Still Has Advocates in the C-Suite

Some major U.S. companies (like Yelp and Hubspot) remain committed to remote work, Bloomberg’s Work Shift newsletter is reporting. If there is a common denominator among the companies that remain bullish on WFH it is that they all have a high proportion of software engineers who can code without much need for interaction with others. Citigroup, on the other hand, which had been a champion of WFH in the early days of the pandemic, is now reducing the amount of flexibility that its workers have.

https://www.bloomberg.com/news/newsletters/2023-06-27/rto-or-wfh-3-top-ceo-s-still-believe-in-the-future-of-remote-work?srnd=premium-europe

Remote Workers Earn More than Those that are Office-Bound but…..

The depth of research for this article would probably not earn you a PhD but it poses some interesting questions, nonetheless. According to surveys of LinkedIn job postings, ‘remote capable’ jobs pay almost 10% more than jobs requiring presence in the office. Of all the possible explanations, the notion that companies are passing on savings from not having to pay for office space stands out! Really? Six paragraphs in comes the ‘but.’ The big problem with remote work it seems is that ‘bosses’ fall prey to ‘proximity bias,’ a polite way of saying that if managers don’t know you that won’t promote you. Referencing a Harvard report cited in this space previously, people working remotely don’t get the mentoring or feedback that helps improve job performance.

As highlighted in a great presentation from Maeve Cashin at SRRA’s recent Forum, the age-old criteria that determine job satisfaction are still ‘good or bad managers,’ ‘pathway to advancement,’ ‘working life balance,’ and ‘compensation.’ The latter criterion must be significant to outweigh the other three, HR professionals might conclude.

https://fortune.com/2023/06/22/remote-workers-outearning-in-office-peers/amp/

One Major Player is Looking at AI to Replace Office Workers as a Way to Stay Competitive

When the world’s largest asset manager starts blaming falling productivity on remote work (and inflation), it is not surprising that a frustrated CEO might start investigating alternatives. At a recent investor day meeting, Blackrock’s CEO threw down the AI gauntlet. Time will tell how this idea plays out.

https://finance.yahoo.com/news/blackrock-ceo-larry-fink-blamed-100817540.html

Lessons in City Building – New York’s Hudson Yards Success Inspired by Strength of “trophy” office projects

It isn’t often that a prominent municipal politician goes out of his way to admit he underestimated the role that New York’s Hudson Yards development could contribute to city coffers, but that’s what took place in the Big Apple recently. There were billions of dollars at risk, but the massive west-side development is now contributing millions more in revenue to the city through the property tax base than had been anticipated. A couple of key sentences in the comptroller’s speech might resonate with Toronto politicians looking at the feasibility of “investing” in a rail deck park in downtown Toronto. “I don’t think parks and subways are subsidies. That’s the role of government to encourage growth of the city,” he noted.

https://www.bisnow.com/new-york/news/economic-development/hudson-yards-critic-brad-lander-backflips-says-he-got-it-wrong-119463?utm_source=outbound_pub_5&utm_campaign=outbound_issue_68343&utm_content=outbound_link_1&utm_medium=email

Sustaining a Return to the Office Not a Slam Dunk, Houston’s Experience Shows

The city of Houston has not been able to sustain the percentage of office workers returning to the office, new reports suggest. Lengthy commutes are cited as a principal reason for the drop in numbers.

https://www.bisnow.com/houston/news/office/houston-fumbles-its-early-return-to-office-lead-119398?utm_source=outbound_pub_5&utm_campaign=outbound_issue_68307&utm_content=outbound_link_14&utm_medium=email 

Amazon Expands Its Office Footprint at the Top of ScotiaPlaza

As more of its employees return to the office, Amazon has been refurbishing but also expanding its office footprint in downtown Toronto. The company now has more than 3,500 staff in three locations. Each space is tailored to the specialized needs of the teams working there. And in a throw-back to boom times pre-pandemic, Amazon is allowing employees to bring their dogs to work. When the office is on the 47th floor, this could require careful planning!

https://storeys.com/inside-amazon-downtown-toronto-office/

Adopting a Principle-Based Approach to Remote Work the Way to Go (maybe)

Focus on your company’s “purpose and culture” and follow a set of prescriptive principles as an alternative to whatever the practice is now. The author of this article dissects differences between a firm policy, a set of guidelines, and a principle-based approach.

https://www.forbes.com/sites/georgebradt/2023/06/27/why-any-remote-work-policy-is-doomed-to-fail/amp/

April 1 in July?

As far as we can tell this report about a new federal program is not a spoof. The federal government plans to launch a digital nomad strategy for foreigners who want to work remotely in Canada. It's one of five initiatives Ottawa plans to implement to attract global tech talent to Canada. Minister of Immigration, Refugees and Citizenship Sean Fraser made the announcement at a recent conference in Toronto.

https://www.blogto.com/city/2023/06/canada-launching-new-digital-nomad-plan-foreign-remote-workers/

 “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, 2023

Average weekly - 51%

Peak Day - Wednesday 62%

Slow Day - Monday & Friday 31%

At the 18th SRRA Forum held last week, experts discussed challenges to the region’s economy that are a direct impact of the pandemic. First, was an enhanced focus on Human Resources and how employers are managing an employee driven marketplace, next was the degree remote work will change the office industry, road congestion and transit on the streets and finally the economic Impact of COVID.

The Forum concluded that most challenges find there roots in pre-COVID trends and that the sustaining impact of COVID is currently overstated.

Toronto, like many other comparable cities, is slowly returning to a new norm where the majority of office work is returning to offices while establishing how much remote work is effective is still a work in progress

Your SRRA Team,

Links to Articles of Interest

U.S. Experts Remain Optimistic on the Future of Office Leasing

Continuing uncertainty of the future of office portfolios is fueled in part by different levels of office occupancy in cities across the U.S. While generally seeing lower office occupancy levels than Asia and Europe (reflecting differences in the length of commutes and smaller residential spaces for the most part), Christian Ulbrich, the CEO of JLL notes that not all U.S. cities are the same. “We are at about 65% pre-pandemic level here in Chicago, which means that it's at the top among cities now.” This is significantly higher than San Francisco and San Jose, he indicated.

https://www.bisnow.com/national/news/office/worst-over-for-office-predicts-jlls-ulbrich-119336?utm_source=outbound_pub_24&utm_campaign=outbound_issue_68129&utm_content=outbound_link_8&utm_medium=email

Experts Place Low Office Occupancy Levels at Feet of Timid CEOS

A recent Biznow panel dumped on a lack of willpower on the part of CEOs for failing to get their employees back in the office. “CEOs need to get some huevos and tell their employees that they hired them to work 40 hours a week and get back to the office. I think they've been very timid,” one panelist noted.

https://www.bisnow.com/national/news/office/return-to-office-jll-amber-schiada-119311?utm_source=outbound_pub_90&utm_campaign=outbound_issue_68074&utm_content=outbound_link_12&utm_medium=email

Rising Construction Costs Playing a Role in TMU Decision to Build Less

In a decision that will need unpacking to fully understand its implications, Toronto Metropolitan University (formerly Ryerson) has elected to drop plans to put a student residence on top of a new life sciences building planned for downtown. The stated reason is a concern about the rising costs of construction and a shift in priorities in favour of more educational space. The result is a drop in height from 44 to 14 storeys! One hopes that the new building will turn out to be more attractive than the rendering.

https://www.blogto.com/real-estate-toronto/2023/06/202-jarvis-street-toronto/

Canary Wharf Buffeted by Winds of Change – Yet Owners Remain Committed

Newspapers love to tell a story of declining fortunes but the ups and downs experienced by Canary Wharf over the years are providing lots of fodder for those keen to link the area’s future with the tarnished legacy of Margaret Thatcher. Moody’s has downgraded debt for Canary Wharf Group (CWG) ahead of mortgage renewals due in 2024 and 2025. The same ratings firm that famously gave credit default swaps a passing grade prior to the 2008 meltdown has applied a “broad brush” to the project according to one critic.  “The downgrade reflects the broader market environment and …there is a tendency for people to look at commercial real estate with a “broad brush approach,” says the CEO of CWG.  The area has evolved as a genuine mixed-use neighbourhood, with significant residential, retail and institutional investments alongside the higher profile office projects. Also known for its high-quality public realm, Canary Wharf is now accessible by the Elizabeth Line, which dramatically reduces commuting times for thousands. Meanwhile Goldman Sachs Group says, “Sentiment toward owning office assets remains low.” 

https://www.telegraph.co.uk/business/2023/06/11/canary-wharf-london-margaret-thatcher-legacy/

and https://www.bloomberg.com/news/articles/2023-06-12/london-office-market-will-weaken-further-goldman-analysts-warn

 Complexities Abound in the Search for the Right Balance for Work Environments

A new UK survey suggests that although the public and private sectors are treating hybrid working conditions very differently, “pre-pandemic work patterns are — very slowly — reasserting themselves.”  Government offices are reporting lower attendance levels than large corporations but this sector is also demonstrating an interest in finding creative ways to balance the desire for productivity with flexibility for their staff, with decisions being made to take on new space.

https://www.bisnow.com/london/news/office/the-uks-new-workplace-dividing-line-private-sector-goes-office-centric-public-sector-stays-at-home-119252?utm_source=outbound_pub_55&utm_campaign=outbound_issue_68140&utm_content=story&utm_medium=email

Multiple Surveys Add to Confusion Over Reality for Office Managers

Perhaps one of the challenges facing companies that would prefer to have their employees back in the office is that survey results conflate attitudes to work with opinions about where that work should take place.“According to Gallup, 79% of the global workforce is not engaged at work.”  The threat of a downtown affecting tech workers is mixed in with attitudes expressed by those working in sectors where staffers feel they still have edge because their talents are in demand and hard to replace. “It is important to pay attention and make sure you create an environment where remote workers feel respected, encouraged and listened to in order for them to develop professionally as well as have a good work-life balance,” conclude’s yet another survey.

https://www.npr.org/2023/01/25/1150816271/employee-engagement-gallup-survey-workers-hybrid-remote#:~:text=Employee%20engagement%20has%20fallen%20since,compared%20with%2036%25%20in%202020.

Blast from the Past? Amazon Statements Echo Sentiments Rarely Heard in 2023

The executive who led Amazon’s real estate journey over the past five years claims that employees are “enthusiastic” about moving into the firm’s newly built headquarters in Alexandrea. The opening of a million square foot Class A office complex is a rare event but Holly Sullivan is bullish on the future of Amazon’s plans, saying that phase two of the project could begin as soon as 2024.

https://www.bisnow.com/washington-dc/news/office/amazon-real-estate-head-holly-sullivan-on-the-first-days-of-hq2-the-tech-giants-future-footprint-and-return-to-office-119290?utm_source=outbound_pub_24&utm_campaign=outbound_issue_68129&utm_content=outbound_link_14&utm_medium=email

The Push to Convert Office to Residential Becomes an Election Issue in Toronto

Although not at the top of the list of priorities during election debates, at least one candidate has committed to weaken the current requirement to replace office space when conversions are planned. “As it stands, office space in downtown Toronto neighbourhoods must be replaced if it is removed, creating a major barrier for such projects to move ahead in Canada’s largest city,” the article explains. Hullmark is one of several developers keen to press ahead with conversions. An architect with Gensler, a firm that specializes in conversions, admits “Despite growing interest in making it work, the process is not without challenges, he said, and not all office buildings are good candidates.”

https://www.bnnbloomberg.ca/toronto-developers-keen-to-convert-offices-to-housing-say-city-rules-are-a-barrier-1.1931171

And Finally…Toronto’s Mayoralty Race Earns the City a Raspberry on Bloomberg

Not the kind of publicity an ambitious city like Toronto craves….we survived a dip in our international reputation when a previous mayor’s name became associated with drug use….but as this article points out, the stakes have changed.

https://www.bloomberg.com/news/articles/2023-06-15/toronto-mayor-s-race-what-to-know-who-s-running-besides-the-dog?cmpid=BBD061523_CITYLAB&utm_medium=email&utm_source=newsletter&utm_term=230615&utm_campaign=citylabdaily

 “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],”

Occupancy Index - May 15, 2023

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.

https://www.bisnow.com/national/news/office/blackrock-calls-workers-back-to-their-desks-four-days-a-week-119016?utm_source=outbound_pub_90&utm_campaign=outbound_issue_67525&utm_content=outbound_link_11&utm_medium=email

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.

https://www.bisnow.com/national/news/office/65-of-companies-now-requiring-some-office-attendance-cbre-survey-finds-119036?utm_source=outbound_pub_5&utm_campaign=outbound_issue_67536&utm_content=outbound_link_3&utm_medium=email

https://www.thestar.com/business/2023/05/25/time-for-the-wrecking-ball-report-warns-torontos-glut-of-empty-office-towers-could-last-at-least-two-more-decades.html

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…

https://amp.tvo.org/article/remote-work-isnt-going-anywhere-so-what-do-we-do-with-torontos-office-buildings

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.

https://www.theglobeandmail.com/business/industry-news/property-report/article-office-conversion-to-housing-costly-say-developers/

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.

https://www.marketwatch.com/story/younger-workers-know-being-remote-has-drawbacks-but-they-dont-care-heres-why-95cc567a

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],”

Occupancy Index - May 1, 2023

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.

https://www.thestar.com/business/2023/05/11/canadas-major-banks-could-see-profits-drop-by-9-on-office-slowdown.html

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.

https://www.google.com/search?q=10+surprising+facts+that+complicate+everything+when+it+comes+to+working+from+home&rlz=1C5CHFA_enCA849CA881&oq=10+surprising+facts+that+complicate+everything+when+it+comes+to+working+from+home&aqs=chrome..69i57.13861j0j4&sourceid=chrome&ie=UTF-8

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.’

https://www.thetimes.co.uk/article/wfh-city-bosses-told-your-staff-are-back-in-the-office-so-you-should-be-too-pjfzlbcpd

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.

https://www.bisnow.com/london/news/commercial-real-estate/ai-means-fewer-ibm-staff-to-fill-office-space-for-now-118845?utm_source=outbound_pub_16&utm_campaign=outbound_issue_67358&utm_content=outbound_link_9&utm_medium=email

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. 

https://www.bloomberg.com/news/articles/2023-05-17/san-francisco-transamerica-pyramid-is-being-remade-in-bet-remote-work-will-fade?cmpid=BBD051723_CITYLAB&utm_medium=email&utm_source=newsletter&utm_term=230517&utm_campaign=citylabdaily

 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)

https://irc.queensu.ca/talent-management-truths-5-lessons-from-the-field-to-help-solve-todays-workplace-challenges/?utm_source=coulter-talent-management-truths-5-lessons-from-the-field-to-help-solve-todays-workplace-challenges&utm_medium=enews&utm_campaign=20230517-enews-may 

  “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],”

Occupancy Index - April 15, 2023

Average weekly - 47%

Peak Day - Wednesday 59%

Slow Day - Friday 27%

Advances continue through April.

See several Articles of Interest below which underscore the tension between employers and employees over when and how remote work should be managed.

 The next Index is scheduled for May 25th, 2023.

Links to Articles of Interest

Flexibility Versus Feedback: Remote Workers Need to Decide Priorities for Career Advancement

In a new study just published, Harvard economists working with the Federal Reserve Bank of New York and University of Iowa found that while senior professionals can manage remote work without damaging their career prospects the same may not be true for those who are junior, less experienced. It is this cohort – the leaders of tomorrow – who are potentially disadvantaged when deprived of in-person feedback from mentors and other colleagues commonly associated with working in an office environment. The study’s preliminary findings, while focusing on a narrow segment of knowledge work, offer insights that can be more broadly applied, say the authors. It comes down to the benefits of “face to face vs Facetime,” says one of the economists who prepared the study. While many office workers have become reliant on the flexibility offered by remote work, the potential downsides of working in isolation from co-workers is an issue that younger professionals need to consider.

https://www.nytimes.com/2023/04/24/business/remote-work-feedback.html?smid=nytcore-ios-share&referringSource=articleShare

Federal Employees Striking Over Money But Also Remote Work Conditions

Including the right to work from home in the collective agreement is a “red line” the government is reluctant to cross, according to recent reporting from the Financial Post. PSAC president Chris Aylward called the Treasure Board policy “senseless” and said unionized workers were “furious” over the plan. “The federal government’s blanket hybrid work plan … forces a flawed one-size-fits-all approach on a diverse and evolving public service,” PSAC said in a statement. Meanwhile critics of PSAC are referencing a 2021 Fraser Institute study that concluded federal workers already enjoy a wage differential over private sector compatriots, and are less at risk of layoffs.

https://financialpost.com/fp-work/psac-strike-why-work-from-home-sticking-point-negotiations?s=09

Federal Employees Seeking Double Digit Wage Increases, Plus Entrenchment of Right to Work Remotely

More than 150,000 federal workers are on strike, seeking double digit increases in pay. But a key issue on the bargaining table is the right to work from home. According to the Globe and Mail, “PSAC is also demanding that remote-work language be entrenched in any future collective agreements, so that unionized workers have the ability to grieve a forced return to the office that they deem unfair. The government has mandated that all federal public employees be in the office at least two to three times a week.”

https://www.theglobeandmail.com/canada/article-psac-threatens-to-escalate-strike-action-to-ports-across-the-country/

A Combination of Remote Work and AI Helping Some Workers Hold Down Multiple Jobs

As patterns of remote work start to form increasingly rigid opinions for and against, some workers looking to increase their incomes are capitalizing on AI tools to provide them with the ability to hold down two, three or even four jobs when working remotely. While based on a tiny sample, this article published in VICE, an engineering publication, explores yet another wrinkle that could determine whether our urban fabric is whole cloth or simply non-iron. “ChatGPT does like 80 percent of my job if I’m being honest,” one interviewee admitted.

https://interestingengineering.com/innovation/remote-workers-can-now-hold-down-many-jobs-thanks-to-ai-tools

BMO Creates New Offices in Former Retail Space

The rapid shift in the fortunes of department stores has seen landlords scrambling to find alternatives that can pay the rent.  Things took an unusual turn at the Eaton Centre recently when BMO cut the ribbon on 350,000 sq ft of repurposed retail to provide “more open space that would bring employees together to drive collaboration,” BMO’s chief strategy and operations officer announced. The space includes a wellness centre and ergonomic sit or stand workstations. There are showers (useful for those who cycle to work) and gender-neutral washrooms. Attention has also been paid to designs that facilitate wheelchair access and wayfinding colour prompts.

https://www.theglobeandmail.com/business/industry-news/property-report/article-bmo-place-transforms-iconic-retail-space-at-toronto-eaton-centre-into/#:~:text=BMO%20Place%20transforms%20iconic%20retail%20space%20at%20Toronto%20Eaton%20Centre%20into%20offices,-Wallace%20Immen&text=As%20one%20door%20is%20closing,to%20move%20out%20of%20Canada.

Was New Yorker Cover from 2017 Ahead of its Time?

For a longer examination of how AI could affect the future of work, read the article below by advisor to the U.S. President and author Tim Wu. “Ever since there’s been AI, there’s been a fear that robots are coming for our jobs, best illustrated by the 2017 New Yorker cover depicting robots stepping past human panhandlers on their way to work,” he writes. “But if history is any guide, we humans may face nearly the opposite problem. We will not be unemployed, but asked to do far more less meaningful work. That follows, because we live in a culture obsessed with output and productivity, and supervised AIs may make it possible to do more in less time. Take whatever it is you do, triple the output demands and witness your future.” Key question: does a job that can be done remotely increase the chance of that job being done by AI? https://www.theglobeandmail.com/opinion/article-in-an-ai-future-we-are-all-middle-managers/

Some U.S. Cities Turning to Tax Strategies to Promote Office to Residential Conversions

“Falling tax revenue. Aging downtowns losing their vitality. Record office vacancy. A housing crisis. One strategy could tackle all of these problems in one fell swoop: a wave of office-to-residential conversions.” This summarizes a move by cities in the U.S. to temp developers into taking on the risky – and often expensive – process of converting failed office properties into much needed housing.

https://www.bisnow.com/national/news/office/more-cities-are-giving-away-money-for-office-to-resi-projects-as-threat-of-obsolescence-grows-118474?utm_source=outbound_pub_90&utm_campaign=outbound_issue_66594&utm_content=outbound_link_12&utm_medium=email

Call Centres in the U.S. Embrace Remote Work – A “World of Hurt” for Landlords

The continued growth of on-line shopping is one of several factors stimulating an increase in the number of call centres established in the U.S. However, what was once a reliable source of revenue for landlords looking to fill up empty office space is fast disappearing according to commercial realtors as call centre operators save on rent by moving their workforce to work from home. Even a major cybersecurity firm has committed to 100% remote work for its 600 employees. Says one of their top executives, with no hint of irony, “If you have the right tools to ensure security, privacy, and tracking work there are few reasons to have your staff in a single location to be supervised. Good training, [standard operating procedures], scripts and quality control while providing your team the right tools to work effectively from home will be a much wiser investment than paying rent for facilities.” There is no mention of whether home-based internet services are able to provide the kind of security a cyber security firm might require…

https://www.bisnow.com/national/news/office/as-call-centers-embrace-remote-work-landlords-in-for-a-world-of-hurt-118578?utm_source=outbound_pub_16&utm_campaign=outbound_issue_66708&utm_content=outbound_link_10&utm_medium=email

New York Subway Traffic Reaches Milestone

Although still well below pre-pandemic numbers, the MTA is celebrating a recent milestone that saw 4M passenger trips in one day. “The MTA is the lifeblood of this city, and New York State has made critical investments in our subways to improve the rider experience,” Governor Hochul stated.

https://www.bloomberg.com/news/articles/2023-04-21/new-york-city-s-subway-carries-4-million-rides-in-one-day-for-pandemic-record?cmpid=BBD042423_CITYLAB&utm_medium=email&utm_source=newsletter&utm_term=230424&utm_campaign=citylabdaily

A Bold Idea for Mayoralty Candidates this June

Portugal’s capital, Lisbon, is banning through traffic in its downtown for the foreseeable future (pegged tentatively at three months, but this is a ‘dynamic’ estimate). The principal reason is practical. “The zones are being justified with reasons that even the most avid devotee of private cars might see the sense of. This summer central Lisbon is undergoing substantial major construction, including a metro extension that will create two new stations, an installation of new storm drains to prevent flooding along the city’s waterfront, street resurfacing and work on the sewers,” reports a writer for London-based CityLab. With hardly a block free from construction in Toronto’s core, utility replacement, road repairs and preparations for closing of sections of Queen Street for at least four and a half years in anticipation of the multi-billion dollar Ontario line (source: Metrolinx), mayoralty candidates who don’t really anticipate winning might have fun recommending a similar ploy in Toronto.

https://www.bloomberg.com/news/articles/2023-04-24/lisbon-car-ban-limits-through-traffic-in-city-center?cmpid=BBD042423_CITYLAB&utm_medium=email&utm_source=newsletter&utm_term=230424&utm_campaign=citylabdaily

 

  “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],”

Occupancy Index - April 1, 2023

Average weekly - 45%

Peak Day - Wednesday 58%

Slow Day - Friday 27%

Employers are beginning to invest in office facilities to attract workers back, a tangible sign that they are trying to encourage a return to the office. New more collaborative space which have the amenities of home and address the cost of coming to the office may continue to reduce remote work.

Variations of the hybrid model where employees choose when and where to work is not meeting the needs of employers. It is evident from interviews that most employers who are measuring productivity relative to where employees are working are finding a need to increase office attendance. At the same time employers are supporting remote work where it is working.

See several Articles of Interest below which underscore the tension between employers and employees over when and how remote work should be managed.

 The next Index is scheduled for April 27th, 2023.

Links to Articles of Interest

Thoughtful Fortune Analysis Calls for Employers and Employees to ‘Grownupify’

Taking stock of the many conflicting directions affecting the modern office work environment, this excellent article from Fortune suggests that we may have forgotten how to add value to individual performance in the workplace. Paying too much attention to productivity measures that are more appropriate for the schoolyard than today’s offices devalues the importance of trust. In what the author characterizes as ‘non value-added optimization,’ this is a call for everyone to ‘grownupify’!  And the bonus is that there is no mention of remote work or pressures to return to the office. This is about trusting your employees to great work. Perhaps negotiators and union representatives for more than 150,000 federal employees currently looking down the barrel of strike action should take a read of this piece?

https://fortune.com/2023/04/10/old-fashioned-management-failing-productivity-slump-grownupify-work-careers-success/amp/

Is the U.S. Leaving Work From Home Behind?

Data from the U.S. Dept of Labor suggests that the number of workers back in their offices is nearing levels from before the pandemic. Just another source of information to confuse the picture or an indication that trends are shifting?

https://www.wsj.com/articles/work-from-home-era-ends-for-millions-of-americans-8bb75367

One of Canada’s Largest Employers Stresses ‘Purposeful work’ as Key to Company’s Future

Manulife has been investing in physical and programmatic offerings to make being back in the office as pleasant as possible but CEO Gori says,”I think we’re going to see – and probably already are seeing – productivity improve because people are now being more purposeful with their time.” The Manulife building is more than a century old so a refresh was probably overdue but the company has taken the opportunity to build out functional but attractive work spaces. While there continues to be debate among CEOs about how many days in the office should be mandatory, Gori feels that two out of five is the right move for his employees. Surprisingly, Monday attendance levels are also higher than industry norms, something that is also reflected in company locations in other countries.

https://www.theglobeandmail.com/business/article-companies-turn-to-baristas-free-food-and-socializing-to-lure-employees/

Some UK Office Workers Are Reluctantly Admitting They Like Being Back in the Office

Following a media tradition of using individuals to tell a story with wider implications, this article offers the experience of a 20 something who admits to appreciating being forced back into an office environment. In addition to stressing the more obvious advantages associated with face to face contact, the article explores one of the less well-known challenges of working from home: the ability to separate home and work life.

https://www.bbc.com/worklife/article/20230317-the-workers-quietly-backtracking-on-return-to-office

Doom and Gloom for Office Landlords in the U.S. Points to a New Normal Say Realtors

Faced with the need to manage the cost of upgrades to retain tenants and financial pressures related to rising interest rates, even well-heeled companies like Brookfield are feeling the pain in some U.S. markets. Industry insiders suggest that the continuing uncertainty over remote work will mean that only the very best quality buildings will thrive. Cushman and Wakefield reports a significant gap in office attendance between A+ and B class buildings in most U.S. markets. Executives responsible for deciding how much to invest in upgrades are faced with a challenging year, the company suggests.

https://www.businessinsider.com/office-buildings-doom-loop-companies-landlords-remote-work-from-home-2023-3

MTA: Rent ‘Reprieves’ Preferable to Vacancies in the Subway System

The plight of the MTA is by no means unique in the U.S. when it comes to returning to pre-pandemic ridership. This has a knock-on effect on the small retail enterprises that serve customers in the system. Rather than allow boarded up facilities for newspaper and coffee stands, the MTA is continuing its rent relief practices for the foreseeable future to at least maintain the façade of normalcy.

https://www.nydailynews.com/new-york/ny-transit-retail-recovery-slow-20230403-vl2rvsb2ynh5bjqsnk4rd4rsnq-story.html

Role of Universities, Hospitals as Activity Generators On Display in Vancouver

The transformation of inner city former ‘industrial’ areas such as South Flatz are emblematic of the benefits of introducing new uses into a well-located neighbourhood, signaling the emergence of a highly valued life sciences cluster. This is the case in Vancouver as the arrival of a new Emily Carr campus and other post-secondary investments stimulated by the donation of large sites from a former heavy industry. Also on the way is a massive new hospital and health campus anchored by St Paul’s, traditional a downtown entity. Although it won’t be open until 2027 the buzz associated with its construction is encouraging developers to invest in new labs as well as amenities that will be needed to serve the influx of a new daytime population. 

https://www.theglobeandmail.com/business/industry-news/property-report/article-life-sciences-research-facilities-sprouting-in-vancouvers-south-flatz/

Important to Remember What You Learned in Statistics 101

If you think back to your student days, you will no doubt recall that it is critically important to understand the difference between ‘correlation’ and ‘causation’: remembering this distinction will be helpful when reading this interesting but sometimes baffling article about ‘big data’ and its influence on the way cities are planned and managed.  With examples from many jurisdictions, the ‘solutions’ identified by big data range from linking the absence of abandoned buildings and tree cover to predict gun violence to blindingly obvious links between reduced commuting as a result of work from home and economic pain for downtown service industries. The article nevertheless makes a useful distinction between “specifically designed data” such as information coming from the census to “opportunistic data” from cell phone usage etc. MIT researchers also note that such sources are constantly evolving as privacy requirements ramp up.

https://www.theglobeandmail.com/business/article-big-data-helps-planners-reimagine-cities-as-new-work-patterns-emerge/

Just When You Thought You Had Heard Everything

Hard to believe, but there is a new breed of entertainers emerging to serve the poor souls who have to show up in soul-destroying office environments – meet the dog visitors, a new way to bring joy to over-stressed CEOs. “(CEOs) will come right into the pen snuggling the dogs. It’s adorable,” says Ms. McFadden, who founded Doggos, a Toronto-based company that puts on social and corporate dog events, in 2020.

https://www.theglobeandmail.com/canada/article-doggin-it-at-the-office-employers-are-using-dog-visits-to-entice/

  

  “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],”

Occupancy Index - March 15, 2023

Average weekly - 43%

Peak Day - Wednesday 54%

Slow Day - Friday 29%

The return to the office momentum slowed during the March break but recovered afterward. 

CEOs are reporting that remote work is particularly harmful for youth career pathing largely because senior experienced employees are staying home at an alarming rate reducing opportunities for in-person mentoring and collaboration. Research conducted by SRRA in London and New York indicates that remote work is at similar rates in the heart of both cities and is having the same impact on productivity and training development. Corporate leadership in those cities is requiring a return to the office for as much as 90% of pre-COVID levels.

The attached links to articles underscore the issues facing employers whose employees avoid the office. As one senior executive put it, ‘it’s hard to separate and focus on work while the distractions of home life constantly break concentration throughout the day’. As another executive pointed out, ‘the commute provides the opportunity for quiet time to prepare for work on the way in and refocus on home and other activities on the way home, this is being ignored in the discussion on remote work.’

The next Index is scheduled for week of April 10th. 2023.

 Your SRRA team

Links to Articles of Interest

RBC Hardens the Line on Returning to the Office – Productivity At Risk, Says CEO

In a blunt email to employees, RBC says, “Without frequent in-person engagement the bank’s long-term competitiveness is at risk.” Rather than say how many days in the office are required, RBC flips the script, suggesting that after May 1, employees “will be able to work from home one or two days a week, depending on the requirements of their teams.” The memo goes on to say, “When our teams come together on-site more frequently, we are solving complex problems faster, learning and growing more effectively, and ultimately building deeper connections with one another.” Although other banks continue to hedge on the issue, CEO Dave Mackay recently told analysts that he believes “most CEOs would tell you that there is a productivity loss.” In the clearest terms yet, the memo discusses the challenge of achieving a balance between carrot and stick but the bank’s leadership has clearly reached the limit of the slack it is prepared to allow. “We want to continue to encourage …healthy and positive face-to-face moments while ensuring a level of flexibility that we know is important. For this reason, we are shifting toward a more consistent approach to in-person routines that will double down on our culture and lay the foundation to protect our competitive edge in the years ahead.”

https://www.theglobeandmail.com/business/article-rbc-employees-hybrid-office-work/

Toronto Lags Behind the U.S., and the U.S. Lags Behind the Rest of the World When It Comes Returning to the Office: What Gives?

As frequently reported in this space, Toronto is well behind the average occupancy achieved in major U.S. cities – currently at 43%, while U.S. is closer to 50%. According to the Wall Street Journal, a new report by JLL (Jones Lang Lasalle) estimates that ‘’Office attendance has returned to 70% to 90% in Europe and the Middle East, and around 80% to 110% in some Asian cities, meaning some workers are spending more time in the office now than pre-COVID. Global cities like Tokyo, Seoul, Singapore, Paris and Stockholm “reached at least 75% office occupancy throughout 2021 and 2022.” according to JLL. One of the issues is the length of commute, historically longer in places like New York and Chicago. Other factors such as a tight labour market could be influencing these results, the report concludes. Reluctance to force workers back could be a ‘Canadian thing.’

https://www.cnbc.com/2023/03/02/why-us-return-to-office-plans-are-lagging-behind-global-cities.html

Commuting Provides a Useful Break Between Home and Work, Study Finds

Commutes are a source of "liminal space"—a time free of both home and work roles that provides an opportunity to recover from work and mentally switch gears to home. This according to a study published in Organizational Psychology Review reporting on interviews with U.S. office workers. While obviously not applicable across the board, suggestions that time spent commuting can actually be beneficial would appear to foster the view that remote working can blur the edges between personal time and the level of application required to be effective at work.

https://phys.org/news/2023-03-psychological-benefits-commuting-remote-doesnt.html

Relief From Buzzwords to Describe the Current Work Environment Won’t Be Available Any Time Soon

The latest offensive buzzword to go the rounds is ‘quiet hiring,’ an acknowledgment that the best candidates for a position can often be found internally. Which begs the question: if your face isn’t familiar to those making the decisions does this reduce your chances of being hired (or promoted)?

https://www.cp24.com/news/what-does-the-term-quiet-hiring-mean-these-toronto-experts-explain-1.6312617

Rare Example of Positive Impacts From COVID

A U.S. organization that tracks workplace environments (‘Best Place for Working Parents’) reports that on-site daycares increased in number during the pandemic. One-third of the women and one-fifth of the men who left the workforce during the pandemic cited a lack of childcare or its expense, according to a 2022 McKinsey & Co. survey. “It’s one of our top attraction and retention tools,” Marriott International Vice President of Benefits Judy Fennimore told the WSJ.

https://www.bisnow.com/national/news/office/companies-are-exploring-on-site-daycare-offerings-in-the-latest-back-to-office-bid-118042?utm_source=outbound_pub_77&utm_campaign=outbound_issue_65726&utm_content=outbound_link_2&utm_medium=email

Toronto Gains Two New We-Work Venues

Banking on the continued popularity of hybrid work, We-Work is opening new locations in Toronto’s Financial District, including occupancy of an entire ‘historic’ 10-storey building on Bay Street and brand-new space in Scotia Plaza. The theme is consistent with the company’s belief in Toronto as one of North America’s strongest office markets. “It will provide turnkey, enterprise-grade spaces that meet this local demand for flexibility,” the company says.

https://www.bisnow.com/toronto/news/construction-development/city-of-toronto-wework-on-demand-wework-studiob-117230?utm_source=outbound_pub_5&utm_campaign=outbound_issue_65765&utm_content=outbound_link_13&utm_medium=email

https://www.cnbc.com/amp/2023/03/16/ceo-bosses-who-force-rto-have-control-issues.html

Lower Manhattan Dust Up Over Proposed Office Conversion

The irony. A prominent residential developer is suing new owners and former landlord over a proposal to convert a ‘first class’ office building (known as the New York Technology Center)

 to condos. Citing a clause in their lease that explicitly prohibits residential uses, the company states in its lawsuit that it “never imagined, and would never have countenanced, moving into a residential apartment building for the conduct of its business.”  The suit also refers to the planned removal of asbestos as a health hazard – surely an issue that would apply to many buildings constructed more than 50 years ago.

https://therealdeal.com/new-york/2023/03/20/office-tenant-sues-to-stop-55-broad-resi-conversion/

A Majority of Employers Interviewed by the Urban Land Institute Are Playing a Waiting Game to Decide on the Future of their Office Holdings

Ongoing confusion of how best to address hybrid work schedules, ‘activity-based workspace’ and other issues in the face of economic uncertainty is causing employers to put plans to adjust their office footprints on hold according to a new ULI/Instant Group survey of U.S. employers. Only 14% of those consulted are satisfied they are on the right track for the future. Perhaps more significant is a finding that “less than 2% of asset owners feel they have the required capex to respond to occupier and ESG legislation-related requirements.”

https://www.bisnow.com/london/news/coworking/the-coming-storm-what-activity-based-workplaces-mean-for-landlords-118119?utm_source=outbound_pub_5&utm_campaign=outbound_issue_65888&utm_content=outbound_link_10&utm_medium=email

  “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],”

Occupancy Index - March 1, 2023

Average weekly - 43%

Peak Day - Wednesday 55%

Slow Day - Friday 32%

More and more research is challenging the long-term benefits of the hybrid model asserted by many proponents.  As companies work their way through the implementation of the hybrid model, lessons are being learned about measuring productivity, recognizing the increased time to train and develop talent and the deleterious effects of working in isolation especially when separating employment work from non-employment activity. Technological advances are enabling more effective remote work conditions which will permit flexibility in choosing where to work, but it is still too early to predict how much and for whom.

Our interviews with some of the largest employers continue to reveal frustration with too little in-person work and the deterioration of output in specific cases especially when the choice of work location is random and driven by employee preference. Employers continue to voice concern about this imbalance and about when it will resolve itself. 

Stay well, your SRRA team.

The next Index is scheduled for week of March 27th, 2023. 

Links to Articles of Interest

RBC Ties Reduced Earnings to Drop in Productivity as a Result of Remote Work

On the same day that RBC reported reduced earnings for the past year, RBC’s Dave Mackay calls out the slow return to the office and remote work as a primary contributor to the bank’s disappointing financial results for 2022. Employing nearly 100,000 people across Canada, RBC is one of the major employers that CEOs look to when trying to fashion a winning response to the thorny issue of how to get workers back in the office. “Society isn’t back together enough,” he told analysts on a recent conference call. “All CEOs in every sector…are struggling with a balance of developing talent, promoting talent, building culture, creating productivity...it’s tough, we don’t have the final model yet…most CEOs would tell you there is a productivity loss,” he noted. Regardless of how these complex issues turn out, RBC execs suggest, there will be some degree of impact on the real estate footprint.

https://www.theglobeandmail.com/business/article-rbc-remote-work-challenges-ceo/

British Columbia Reverses Course on Remote Work as a Strategy to Attract and Retain Workers

Having previously said that provincial employees must attend their offices on a hybrid basis the provincial government has indicated that after April 1 it will allow people to work remotely on a permanent basis. The move is being welcomed by the mayors of smaller towns but others are not so sure the shift in policy will work out in the long run.  Even the Globe and Mail is skeptical, suggesting in an editorial that more proof is needed that permanent remote working won’t affect productivity. A similar suggestion proposed late last year in the U.K. was quickly shut down as business leaders reacted with scorn.

https://vancouverisland.ctvnews.ca/remote-work-strategy-coming-for-b-c-government-workers-1.6284839 and https://www.theglobeandmail.com/opinion/editorials/article-bc-needs-to-do-more-homework-on-its-work-from-home-plan/

Europe and Asia Reporting Higher Levels of Workers Returning to the Office than the U.S.

A new report by Kastle surveying office occupancy levels in Europe, Asia and North America suggests that America’s lower rates of return are linked to a variety of factors. These range from stark differences in parental leave policies (working parents in the U.S. have greater difficulty managing a return to the office compared to Europe, where parental leave is significantly more generous), to average home size (U.S. housing tends to be larger and more amenable to home office situations), to different levels of reliance on tech firms (the U.S. has relatively more tech firms, which have shown themselves more open to remote work).  Although not covered in the reports, it is likely that large metros in Canada have working environments that are more similar to the U.S. than Europe or Asia. Commuting patterns are also a contributing factor.

https://www.bisnow.com/national/news/office/us-rto-lags-europe-asia-3-years-into-covid-117872?utm_source=outbound_pub_77&utm_campaign=outbound_issue_65536&utm_content=outbound_link_8&utm_medium=email

Whipsaw Impacts of COVID Continue to Surprise the Experts

While economists and others focus on the possible impact of a recession inspired by the pandemic, business leaders in Miami are reporting a stunning record of corporate relocations to Florida’s largest city. What began as a trickle has become a flood suggest local realtors. More than 50 companies either moved their offices there or opened up additional offices in Miami in 2022 and more than a dozen have already signaled their intention to do so in 2023. Not surprisingly, even as commercial realtors are counting their blessings, housing specialists are warning that housing costs are already ramping up. Perhaps the lure of zero state taxes is seen to be more important than already visible flooding impacts linked to climate change. Plus ca change.

https://www.bisnow.com/south-florida/news/office/miamis-status-as-a-corporate-relocation-magnet-is-only-getting-stronger-117860?utm_source=outbound_pub_77&utm_campaign=outbound_issue_65536&utm_content=outbound_link_15&utm_medium=email

Don’t be fooled by the title focused on Penn Station – this article has lessons on the challenges of city building for all

Towards the end of this very well researched article about failed efforts to rethink the mess that is Penn Station buried beneath Madison Square Garden (MSG), the author asks why it is so hard to plan and implement major infrastructure projects in large cities. The travails of Eglinton Crosstown come to mind, which in turn make the prospect of future failure to complete the Ontario line a distinct possibility.

https://www.newyorker.com/magazine/2023/03/13/the-fight-over-penn-station-and-madison-square-garden?utm_source=nl&utm_brand=tny&utm_mailing=TNY_Daily_030623&utm_campaign=aud-dev&utm_medium=email&utm_term=tny_daily_digest&bxid=5cec2540fc942d3ada0ac68d&cndid=55998875&hasha=d03241001895cc7e698377663dc347c8&hashb=ebfb054dd3f1e55be2ea5f1a7d9284bd3753cc2d&hashc=61ebb62f8825165558837e3a3201751a524e922393dbd5da1392b2e2cab56e65&esrc=Auto_Subs

And Now for Something Completely Different

Shades of Monty Python: Kastle Systems also tracks the volume of water consumed in U.S. offices, and reports that office occupancy levels are water consumption have been matching throughout the pandemic. How do they know this, you ask? The answer is that there is a new breed of internet-connected water cooler, which provides highly accurate reports on the amount of water consumed in more than 5000 locations. There is no mention of whether these devices have an impact on cyber security – see https://www.renewcanada.net/feature/prepare-for-the-worst-hope-for-the-best/ - but companies that have installed high tech water coolers believe that water consumption is a highly accurate indicator of how many employees are spending time in the office. Cheers to ‘water cooler moments’ as a symbol of office comradery!

https://www.wealthmanagement.com/office/watercoolers-become-rto-measure-remote-work-debate-rages

  

“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],”

Occupancy Index - February 15, 2023

Average weekly - 42%

Peak Day - Wednesday 54%

Slow Day - Monday 33%

Mangers and employees alike continue to struggle with finding an effective balance between managing “In-Office” and “Remote” work. The expected post Christmas increase in the return to the office has slowed in February. The overall figures are off by 1%.

The gap between companies with high rates of in-office work and low rates continues to increase. The difference is greatest between midsized enterprise and large employers. Some companies, mostly smaller and midsized ones are reporting 60% and greater while others remain below the average, despite renewed calls by large enterprise CEOs to return to the office.

This week’s links primarily deal with the significant cost public administrators are facing with the downtown economies and the maintaining service on transit networks across the globe.

Stay well, your SRRA team.

The next Index is scheduled for week of March 13th 2023.

Links to Articles of Interest

Andy Byford Sets Out a Compelling Case for Revamping Assumptions About Transit

Echoing arguments that will be all too familiar to regular attendees of SRRA Forums, former TTC CEO Andy Byford describes how over-dependence on fare revenues is potentially the Achilles heel for large transit agencies. Prior to COVID, the underground division of Transport for London – where he was the CEO – had been close to break even. The pandemic decimated the agency’s balance sheet as revenues plummeted following lock down. As a result, he had to spend the remaining years of his time at TfL negotiating for increased government subsidy and fighting pressure to cut costs by reducing service – a situation similar to the one currently being experienced by the TTC. One of several new alternative revenue sources explored by TfL has been the productive repurposing of what had previously been thought of as surplus property through partnerships with developers that resulted in significant on-going revenue – and produced affordable housing to boot.  Byford also believes that some form of hybrid work will turn out to be a permanent state, and that transit agencies can no longer depend on commuting alone to deliver the kind of revenues they have become dependent on. Byford’s finely tuned article also illustrates the importance of helping the general public – in this case readers of the Globe – understand the realities faced by transit executives.

https://www.theglobeandmail.com/opinion/article-we-must-urgently-reinvent-public-transit-for-the-postpandemic-world/

Remote Work Costing Manhattan $12B a Year

Supporting a downtown economy built on a five-day work week with only three active days is costing merchants and the MTA a massive financial headache a new study has found. That figure was calculated by multiplying the annual inflation-adjusted loss in spending per worker by the US Census Bureau’s estimated nearly 2.7 million commuters and residents who worked in Manhattan in 2019.  Frustrated business owners and employers alike continue to battle with the drive to get workers to return to something like a normal schedule but three days a week is emerging as a new norm analysts believe.

https://www.bloomberg.com/graphics/2023-manhattan-work-from-home/?srnd=citylab

Bloomberg Tracks Changes in Commuting in Major World Cities

Traffic and transit ridership in the five cities studied are all very different from before COVID.

London’s transit ridership is down by at least 25% and the system has been plagued with intermittent strikes. Mexico City, Tokyo, New York and Mumbai are all suffering in a variety of ways but the bottom line is that the bottom line is changing for all these cities as traffic patterns, transit ridership and decisions affecting residential location choice throw previous norms into disarray.

https://www.bloomberg.com/citylab

But a New Zealand based non-profit would argue that four days could be the next new normal.

Interim results from multi-city study involving hundreds of major employers that began last summer is suggesting that four days a week in the office could be an acceptable compromise that balances maintaining office efficiencies with satisfying workers who had become used to reduced stress related to commuting.  The Guardian newspaper is reporting that landlords and other investors with a stake in the value of office real estate are reluctantly seeing the four days in the office ‘norm’ as the way of the future.

https://www.bisnow.com/london/news/commercial-real-estate/offices-could-be-empty-more-often-with-hybrid-working-in-and-five-day-week-out-117754?utm_source=outbound_pub_16&utm_campaign=outbound_issue_65178&utm_content=outbound_link_2&utm_medium=email

Smart Growth America Focuses on Walkability Scores

Dallas Fort Worth is not somewhere typically associated with walkable environments. A report by Smart Growth America found that this popularly held view is unfortunately a reality, with that city receiving the lowest score for walkability among 32 metros studied. Developers in that region are reportedly frustrated with attempts to introduce ‘walkable urbanism’ with mixed use projects but blame push back by a variety of stakeholders with entrenched views.  Proponents of pedestrian friendly environments point to the economic and competitive benefits that such projects provide, but this is apparently lost on Texans.

https://www.bisnow.com/dallas-ft-worth/news/commercial-real-estate/rampant-nimbyism-driving-dfws-dismal-walkability-ranking-developers-say-117723?utm_source=outbound_pub_5&utm_campaign=outbound_issue_65136&utm_content=outbound_link_15&utm_medium=email

Amazon Primed for Major Shift in Hybrid Work Arrangements

Minimum three days in the office. That’s the take it or leave it statement from the CEO of one of America’s largest employers. While some observers welcome this hard line approach, others point out that even three days a week does not bring downtowns back to the conditions that helped them thrive before the pandemic.

https://www.bisnow.com/national/news/office/amazon-to-require-employees-to-come-back-to-the-office-more-often-117725?utm_source=outbound_pub_60&utm_campaign=outbound_issue_65117&utm_content=story&utm_medium=email

  

“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],”

Occupancy Index - February 1, 2023

Average weekly - 43%

Peak Day - Wednesday 56%

Slow Day - Monday 33%

Managing “In-Office” work and “Remote” work continues to challenge employers and employees. We expect the post Christmas surge to level off while companies who have mandated as much as 60% to 80% “In-Office” work seek to achieve higher employee attendance. The trend toward high mid-week office work is starting to show some signs of levelling, but we can’t tell from the data yet whether this trend will continue.

Our contributors confirm that long commuting times are an impediment to returning to the office. SRRA is working on strategies which reduce commuting times with business leadership, road and transit operators. Should you wish to participate contact SRRA. We look forward to sharing these ideas with Index readers.

Stay well, your SRRA team.

The next Index is scheduled for the week of February 23rd, 2023.

Links to Articles of Interest

Don’t write office work off just yet! U.S. office occupancy reaches 50% tipping point

The strong probability of a recession and a softening of the labour market generally in the U.S. combined with tougher stances by employers regarding getting people back to the office is being reflected in the numbers, according to Kastle Systems. Well publicized mass layoffs in the tech sector are said to be prompting more workers to reacquaint themselves with the office.

https://www.bisnow.com/national/news/office/return-to-office-rto-kastle-systems-record-117447?utm_source=outbound_pub_5&utm_campaign=outbound_issue_64615&utm_content=outbound_link_2&utm_medium=email

Commuting Woes Hampering Toronto CEOs in Efforts to Get Workers Back

Long commutes have never been popular and Toronto’s record on this score has often grabbed headlines for the wrong reasons. Now, as CEOs struggle to persuade employees that being back in the office is mutually beneficial, increasing rates of traffic congestion – significantly related to difficulties accessing and exiting underground parking during rush hour(s) – combined with transit service cutbacks is causing problems for companies. The head of one of the largest law firms is even resorting to feeding a phenomenon known as FEMO – Fear Of Missing Out – to suggest that there are actual downsides to ‘not being there.’

https://www.theglobeandmail.com/business/article-toronto-transit-bay-street-offices/

Colliers Canada Report on ‘Hybrid Work’ Suggest Landlords and Employers Struggling to Make Right Decisions on Space

So many threads being pulled at the same time – how are employers meant to make sense of continuing uncertainty, is the cry. Some see space per worker cut back as companies shrink their real estate footprint. Suburban locations and flex space gaining in popularity as employers try to mitigate commuting challenges. Other companies investing in high quality gyms and gourmet food offerings to lure workers (see below also).  These trends are playing out in other Canadian markets, not just Toronto, Colliers say. Also important to note that some space per worker decisions already in the works long before COVID, their report cautions. “The pitch to come to the office has to be evidence-based, not just ‘I want you in here,’ says one exec. “You have to explain the effect on the company if people don’t come, and let workers make a choice.”

https://www.theglobeandmail.com/business/industry-news/property-report/article-companies-rethinking-real-estate-portfolios-in-light-of-hybrid-work/

Corporate Wellness Programs Introduced in U.S. offices to stimulate the mind and the body

Although the motivation might be to lure workers back to the office, HR execs see the longer-term benefit of helping their employees stay focused with exercise and other programs designed to lift the energy level in the office.

https://www.bisnow.com/new-york/news/office/kinema-fitness-off-the-couch-and-into-an-exercise-routine-how-corporate-fitness-operators-bring-wellness-into-the-office-studiob-117298?utm_source=outbound_pub_5&utm_campaign=outbound_issue_64615&utm_content=outbound_link_13&utm_medium=email

More U.S. CEOs Cracking the Whip to Get Employees Back in the Office

Probably a different vibe happening in the U.S. vs Canada but with the third anniversary of lockdown soon to be in the rear-view mirror many large employers are saying three, four days in the office is a minimum requirement. And it’s not just Elon Musk!

https://www.forbes.com/sites/jackkelly/2023/01/30/ceos-will-be-clamping-down-on-employees/amp/

U.S. Transit Agencies Struggling to Maintain Service Levels as Ridership Still Way Down

With federal relief funds coming to an end, transit agencies in major cities like New York, Chicago and Boston are sounding the alarm over budget concerns. Forecasts on the optimistic side see 80% of pre-pandemic levels for the foreseeable future, and that won’t work for most. There are some bright spots like Seattle, but advocates are starting to make the case for why access to transit (aka mobility) should be an enshrined right.

https://www.smartcitiesdive.com/news/public-transit-agencies-2023-budget-gaps-ridership-zero-fare/641116/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-01-31%20Smart%20Cities%20Dive%20Newsletter%20%5Bissue:47708%5D&utm_term=Smart%20Cities%20Dive

Minnesota Seeing the Shine on Remote Work Fading?

Even smaller metros in the U.S. are seeing the appetite for hybrid work starting to affect attendance in the office. With fewer large employers, cities like Minnesota look to the experience of places like New York and Chicago. Does the same phenomenon exist in Canada?

https://tcbmag.com/remote-work-bubble-begins-to-pop/

 Daily Telegraph Reports British Employers Concerned Over Fraud

The ability to work remotely is sowing seeds of distrust between employer and employee say some companies in the UK. There is also a practical concern related to cybersecurity. Shifting sensitive work to the home front places responsibility for ensuring secure access into the gray zone.

https://www.telegraph.co.uk/business/2023/02/05/working-home-fuelling-fraud-epidemic-warn-managers/ 

“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],”

Occupancy Index - January 15, 2023

Average weekly - 42%

Peak Day - Wednesday 57%

Slow Day - Monday 29%

While the beginning of the year, shows signs of more employees back in the office, a number of major companies expect this number to move up substantially in the next 3 months. Monday and Friday continue to attract fewer people than mid week, expect this to prevail.

Two words resonate in interviews with tenants, flexibility, and productivity. While many employers are permitting employees to be flexible while planning both home and work, employers are concerned about productivity and maintaining a competitive edge.

The next Index is scheduled for the week of February 8th 2023.

Links to Articles of Interest

Employers starting to worry about liability linked to remote work as legal challenges emerge

What is a workplace? Before COVID defining what constitutes a workplace was reasonably straightforward. These days, with many office workers still working a hybrid schedule, employers are discovering that blurring of the lines between workplace and home can lead to unanticipated conflicts. “The heyday of the hybrid office is coming to an end,” a Globe and Mail columnist suggests.

https://www.theglobeandmail.com/business/commentary/article-hybrid-offices-liability-employers/

Enticements to Lure Workers Back Are the Norm – ‘Show Me the Money’ say Some Workers

This Forbes article on how U.S. companies are dealing with a push to get workers back in the office reports on two independent studies. A survey of 800 company leaders in the U.S. by Envoy, a San Francisco based company that offers an enterprise workplace visitor management software platform, found that even though many workers are “tired of their makeshift home offices and workplaces,” 88% of employers are still having to take extraordinary measures to entice workers back to the office. Most continue to rely on hybrid working schedules and a majority have felt it necessary to make physical improvements to office design. A smaller study done by Blackhawk Network, which provides a digital payments platform, found that financial incentives, including more paid time off, score high on a long list of preferences.

https://www.forbes.com/sites/edwardsegal/2022/04/22/how-companies-are-getting-their-employees-to-return-to-the-workplace/?sh=7573485f30b1

Some U.S. CEOs Are Getting Testy Over Continued Reluctance to Come Back to the Office

Starbucks CEO Howard Schultz is mandating workers to come back to corporate offices at least three days a week in an effort to boost camaraderie and productivity. The coffee retailer is the latest in a wave of companies that have begun enforcing stricter hybrid work models.

https://www.bisnow.com/national/news/retail/starbucks-ceo-requires-corporate-employees-to-return-to-office-at-least-3-days-a-week-117189?utm_source=outbound_pub_5&utm_campaign=outbound_issue_64201&utm_content=outbound_link_5&utm_medium=email

Mississauga Company Moving to Downtown Toronto Hired Extensively During COVID

Not every company will be willing to invest in its employee base as extensively as Intuit but steps taken by the fast growing provider of business software to successfully manage a shift in location appear to be paying off. A key difference is that the employee count at Intuit has grown from 20 prior to COVID by almost 200 today. Management realized that more effort was needed because so few had had a chance to meet face to face, having been hired during the pandemic. VP David Marquis says: “You can be an okay company and work from home but if you want to be a great company with the best culture, you need to give people flexibility and encouragement to work together.”  This sentiment is reflected in a new report for NAOIP prepared by the Altus Group made public last month.

https://www.theglobeandmail.com/business/industry-news/property-report/article-attracting-workers-to-the-office-with-food-games-and-the-comforts-of/

Mixed Messages from Latest UK Survey on Remote Work

Job ads for 100% remote work continue to fall, but employers cautioned to continue offering flexibility to retain top workers. “Despite the popularity of remote roles among jobseekers, our data shows that we have passed ‘peak remote’,” said Ngaire Moyes, UK country manager at LinkedIn.

https://www.bloomberg.com/news/articles/2023-01-18/fewer-jobs-will-let-you-work-entirely-from-home-says-uk-survey

 Stay safe,

Your SRRA Team

 “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],”

Occupancy Index December 15, 2022

Average weekly - 38%

Peak Day - Wednesday 52%

Slow Day - Monday 24%

We are beginning to receive a reasonable amount of in week attendance data which we will now be posted beside the graph for the average weekday in-office work. The next Index will be published January 25th and cover the first 2 weeks of 2023. Have a good holiday week….

2022 Year End Commentary 

A puzzling year for employers and employees. 

This year-end round of links to articles from around the world has all the familiar ingredients that make the current decision-making environment around work from home vs returning to the office so chaotic and unpredictable. The only discernible trend is towards conflicting points of view!

Take productivity. For every report that company performance is not affected by remote work conditions you will find another that condemns the practice. Protecting or enhancing office culture? From conflicted tech CEOs to disillusioned young professionals to concerned HR specialists, the jury is not just out it’s in danger of losing credibility. And while you will read about concerns over the economic impact on downtowns resulting from the absence of office workers, you will also read about consultants willing to predict the end of office space.

Those who predict the end of office space and the transition of those buildings to residential are equally rebuffed by professionals in the office industry who are not seeing evidence of this transition beyond normal market fluctuations.

Perhaps the only truly predictable factor revealed in these links is that when office workers stay home, the financial ecosystem which supports office workers and a city’s transit system faces financial hardship. When transit systems lose commuter traffic revenue mobility for everyone is impacted adversely. That’s as true for Toronto as it is for New York, Chicago, Paris, Frankfurt, San Francisco, or London – which, you may recall, is where our investigations into the impact of COVID began in the spring of 2020.

Downtowns thrive on complexity, and, we trust, will continue to function as a principal meeting place for collaboration and innovation. The people responsible choosing the Oxford ‘word of the year’ could well have picked ‘hybrid work’ – more ink has been spilled on preferences, predictions and predilections on this topic than even Google can keep track of. Meanwhile, SRRA’s Occupancy Index continues to provide you with a reliable source of data on office occupancy in downtown Toronto – knowing that our numbers have relevance to the region as a whole as well as office clusters in cities across the country.

Backtracking on Work from Home – some big tech players starting to re-think whether allowing remote work is a good idea long-term.

With companies like Salesforce (which owns Slack) tinkering with their employment policies, executives continue to seek a balance between getting the job done and keeping their best workers. CBRE’s Julie Whelan (head of ‘occupier research’ for North America) comments, “I think a lot of it depends on earnings and how companies are doing, especially with a looming recession…that's when you'll start to see companies maybe change stance, if they feel that their performance is faltering and that it has something to do with folks that are not coming into the office.” SNAP is another company that has moved from ‘work anywhere’ to requiring at least 80% of an employee’s time in the office. Hard to know if similar thinking will translate north of the border but SRRA’s occupancy index remains a reliable indicator of how firms in downtown Toronto are feeling about hybrid working. The change in mood is not restricted to the tech sector. At least one U.S. bank is suggesting that “collaboration and culture” has taken a hit over the past two or more years with employees working remotely.

https://www.bisnow.com/national/news/office/the-future-of-work-is-hybrid-experts-say-even-if-office-landlords-dont-like-it-116725?utm_source=outbound_pub_16&utm_campaign=outbound_issue_63231&utm_content=outbound_link_5&utm_medium=email

Rocket science it isn’t. But the Federal government decides to mandate at least two days in the office for reluctant federal employees who have become used to doing work from home.

In a move welcomed by Ottawa’s chamber of commerce and others concerned with the economic well-being of downtown Ottawa, the Federal government has chosen to push back against public service unions, who seem to believe that working remotely should be enshrined in collective agreements, by requiring staff to be in the office at least two days a week. “We have rediscovered the value of shared in-person experiences that are essential to cohesive, collaborative and high-performing organizations,” says the Treasury Board.

https://www.msn.com/en-ca/news/canada/breaking-ottawa-mandates-public-servants-to-return-to-office-2-to-3-days-per-week-by-april/ar-AA15kgEq?ocid=msedgntp&cvid=1d91c0dba09c409f8c88b68140db1a45

Dust to rust. U.K. billionaire calls Britain’s plans “to extend employees’ rights to work from home…economically illiterate and staggeringly self-defeating.”

Never one to suck up to politicians (except occasionally Boris Johnson), Britain’s second most wealthy man Sir James Dyson is blowing volumes of very cold air on ideas floated by government leaders. The man who single-handedly reinvented vacuum cleaners and washroom hand dryers has lashed out against the government’s plans to entrench the right to work from home. “Without control over where employees work,” he has said, “companies like Dyson hesitate to invest in the UK.” With more than 14,000 employees, Dyson is no high street shopkeeper. Time will tell if his words have a lasting impact. The man who stared down U.S. giant Hoover at the outset of his career, is clearly not in a mood to go with the flow.

https://www.msn.com/en-ca/money/news/billionaire-james-dyson-says-letting-people-work-from-home-is-staggeringly-self-defeating-and-will-cause-friction-between-employers-and-employees/ar-AA15aDoK?ocid=anaheim-ntp-feeds&cvid=da24e3232f714bd7b6e951ae0d4da951

Is the novelty of remote working wearing thin? Job search descriptions may tell a tale.

This is an update on a report covered by this page a few months ago that looked at Linkedin profiles. Could younger workers have an outsized impact on the future of where we work?

https://www.msn.com/en-ca/money/other/the-novelty-of-remote-work-wears-off-for-job-seekers-as-a-new-mentality-takes-over/ar-AA12Til6?ocid=entnewsntp&cvid=f4342d5051de45b386fbcabf5982e7e9

U.S. downtowns suffering as workers resist returning to their offices. Is the ‘office-centric’ downtown a thing of the past, Business Insider asks?

Even though the U.S. has so many more large cities and therefore a larger overall distribution of office space than Canada, current trends – as reported in the article below – cannot be ignored. Optimists on this side of the border will no doubt hope that this is just another example of clear-cut differences between Canada and the U.S. A New York Times article adds that downtown San Francisco is a ghost town, with office workers having resisted attempts to lure them back. Similarly in Melbourne Australia, downtown foot traffic in Victoria’s largest city is reportedly at all-time lows.

https://www.businessinsider.com/remote-work-gutted-city-downtowns-office-real-estate-apocalypse-2022-12

Another marker that Canada would do well to avoid – politically divisive measures to clear away encampments occupied by the unhoused, but….

Portland is just one of many U.S. cities resorting to desperate steps to deal with increasing levels of homelessness. In L.A., more than 50,000 are ‘sleeping rough.’ In New York, Mayor Adams is seeking authority to force homeless people into hospital if police determine they are mentally ill. Before we get too self-righteous, however, consider that Vancouver is proposing to do the same thing.

https://www.smartcitiesdive.com/news/portland-oregon-passed-a-controversial-homelessness-mitigation-plan-here/636760/?%3A+2022-12-6+Smart+Cities+Dive+Newsletter+%5Bissue%3A46479%5D=

and

https://www.wsws.org/en/articles/2022/12/05/giut-d05.html

and

https://www.theglobeandmail.com/opinion/article-hospitalizing-homeless-people-with-mental-illness-would-just-replace/

LSE study identifies remote work as having a negative impact on social cohesion, suggesting that remote work is increasingly forcing a divide between haves and have nots in large European cities.

One of the most memorable catch phrases to come out of England in the early sixties was “I’m alright Jack,” shorthand for a sense of entitlement that would later come to be associated with selfish attitudes linked to the much-maligned baby boom generation. A London School of Economics study of large European metros points out that while concert goers, sports fans and foodies have returned to the streets, white collar workers are still choosing to avoid the office. Describing office workers as ‘metropolitan elites,’ the LSE study cautions that remote work could have a disproportionate impact on smaller, poorer regions where head offices and large companies are less likely to be located.

https://fortune.com/2022/12/06/how-many-people-remote-work-from-home-lse-study-italy-social-class-metropolitan-elite/amp/

Code Red in the Office – Australia taking the impact of remote and isolated work on the mental health of office workers seriously.

Several Australian states including New South Wales (home to the country’s largest concentration of office workers, are proposing to introduce new workplace health and safety legislation that “significantly increases the duty of employers to protect the mental health of employees.” Citing a “code” developed by Safe Work Australia, Helen Trinca (managing editor of The Australian, that country’s national newspaper) offers numerous examples of working conditions that could create undue stress. These include companies with young workforces working remotely where there are “young men who literally haven’t left their rooms or houses for a couple of months.” Another example cited is when a majority of a company’s workers have come back to the office, allowing a small percentage to continue working at home. “All of a sudden, the people going into work are establishing closer bonds than those interacting with a camera,” reported an HR consultant. Those working remotely are at risk of exclusion, she reports. The Code requires companies to manage ‘psychological hazards.’ It is meant to be “a living system…that considers workers throughout their employment/engagement.”

https://www.theaustralian.com.au/subscribe/news/1/sourceCode=TAWEB_WRE170_a_GGL&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fbusiness%2Fthe-deal-magazine%2Fworking-from-home-now-a-psychological-safety-risk%2Fnews-story%2F6c9b27c4030d17adc85fe53cb12fdc2c&memtype=anonymous&mode=premium&v21=dynamic-groupa-test-noscore&V21spcbehaviour=append

Hub and Spoke locations for large employers benefiting Brooklyn as workers seek to avoid Manhattan. Could a similar movement take place in the GTA?

Although the dynamics and decision-making about commercial real estate in New York are very different than in the GTA, one wonders if some of the office clusters around the GTA could take on extra significance for multi-location employers…although a key difference between the GTA and New York is that Brooklyn can offer rail-based transit.

https://www.bisnow.com/new-york/news/office/hybrid-work-craze-is-good-news-for-the-under-officed-brooklyn-market-116748?utm_source=outbound_pub_5&utm_campaign=outbound_issue_63225&utm_content=outbound_link_1&utm_medium=email

Chicago transit use at 60% of pre-pandemic levels – transit authority ‘heading over financial cliff’ when special federal funding runs out in 2026

Chicago’s transit authority typically has to earn 50% of its revenue from fares but this requirement was waived during COVID. But with ridership levels stuck in the basement, the authority is sounding the alarm. The current funding model is not sustainable, say its leaders. Here in the GTA, where there is a patchwork of funding arrangements, the TTC is most vulnerable to lower than hoped for farebox revenue. Is it time for a whole of region approach? SRRA has put forward implementable options for the GTA. Seeing competitors like Chicago suffer is a reminder that powerful economic engines need to be treated with care.

https://www.smartcitiesdive.com/news/chicago-transit-users-fare-hikes-service-cuts-without-new-funding/638391/

And now, as Monty Python used to say, something completely different

The high cost of free parking version 2.0?  Planned legislation in France could be a game changer for helping to create an affordable source of electricity to power e-vehicles.

Seems like a simple solution but is it too good to be true? One could imagine a similar requirement for hundreds of parking lots in the GTA…

https://www.cnbc.com/2022/12/03/parking-lots-becoming-as-important-as-cars-in-climate-change-efforts.html

Stay safe,

Your SRRA Team

 “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],”