Occupancy Index - November 15, 2022

Comments–

Numerous organizations are attempting to measure the return to the office with cell phone, mobility data and other data which is not specific to the actual number of people working in their office. Although this data is useful when comparing similar cities, Toronto’s office employment market is unique. It dwarfs all other Canadian cities in size and reliance on transit, and its principal businesses are made up of head office, financial services, and new technology companies.

Employees of Toronto’s downtown office buildings are more able to work remotely and save hours in commute time and cost than in other cities across Canada. Similar conditions occur in markets like New York, San Francisco and London UK which are experiencing close to the same levels of in-office work as Toronto’s downtown.

The expectation that the return to the office this Fall would reach 50% of pre-COVID attendance levels did not materialize. Employers in many cases have re-configured policy on in-office work to require a minimum of 3 days a week starting January 2023. If that occurs the Index should reach 50% by the end of January.

Stay safe,

Your SRRA Team

Links to Articles of Interest

Dig beneath the headlines! 

Downtown Montreal is back in all respects except that office workers are ‘missing in action.’  Frustrated employers are at odds with staff. Chamber of commerce leaders are not only critical of employers’ laissez faire approach to getting workers back but also the federal government who seem to be intimidated by public service unions. Downtown is also completely different from the rest of the city, with workers showing up in suburban locations in great numbers than in the core. ‘Companies that have their senior staff downtown and meet their stakeholders in person will be the successful ones tha drive downtown forward’ says one consultant. 
https://www.theglobeandmail.com/business/article-montreal-downtown-economic-recovery-covid/

Is the pendulum swinging the other way towards making the return to the office mainstream? A survey of LinkedIn posts carried out over the past few months is seeing a decline in the number of jobs advertised as ‘remote’ and commentators quoted in this article go further, suggesting that employers are taking the opportunity of an impending recession to restrict hybrid and variations on remote working. Younger staff in particular seem to have become disillusioned with the ‘freedom’ of remote work, and are expressing a desire to re-engage or in some cases, just engage with colleagues. It would be interesting to see a chart that showed employment numbers by length of tenure: just how many people started new jobs since March 2020 and what is that number in terms of percentage of all office jobs? Reading between the lines it would seem we can expect to see more discussion about the ‘P’ word  (‘productivity’) in the coming months.

https://www.bnnbloomberg.ca/work-from-home-trend-may-have-peaked-linkedin-survey-finds-1.1840039

For every signpost pointing one way there is another sending you back down the cul-du-sac!

Recent reports from the U.S. are suggesting that as hybrid schedules get ‘locked in’ there are companies seeking to ‘re-sell’ the space not occupied. A San Francisco firm is seeking to monetize the value of empty seats on the days some employees are working from home. If there are any scriptwriters paying attention to this scenario might we suggest that this is a perfect set up for new sit com!

https://www.bisnow.com/national/news/coworking/san-fran-flex-office-startup-is-like-the-timeshare-for-office-116007?utm_source=outbound_pub_77&utm_campaign=outbound_issue_62344&utm_content=outbound_link_2&utm_medium=email

The office leasing market is never dull and New York is currently proving that this market is nothing if not unpredictable. Recent deal sheets summaries issued by top brokers in New York are reporting massive commitments to large amounts of space in new buildings that will start to appear on the horizon before too long. Quote of the day: “Jumbo city tenants are looking far into the future and not the pandemic past by exploring options and committing to new spaces.” Runner up quote: “Inking deals at $200 per foot has become the old $100 per foot, while $300 per foot has been achieved.” 

https://nypost.com/2022/10/29/why-nyc-companies-are-betting-on-big-office-space/

Just when you thought you seen everything: Major developer commits to ‘super-loos’ That’s right. We’re talking about washrooms. As part of a major redevelopment in San Francisco’s port lands, the Tishman company is offering the following: Tishman is also including what it dubbed “superloos,” in order to provide a “premium restroom experience.” “The individual bathrooms will contain a toilet, a vanity and a hand drying station and are meant to serve as a more gender-neutral, hygienic restroom, Tishman Speyer Managing Director Maggie Kadin told TRD.” https://www.bisnow.com/san-francisco/news/office/tishman-speyers-mission-rock-tweaks-office-component-as-office-market-gets-flushed-116245?utm_source=outbound_pub_77&utm_campaign=outbound_issue_62344&utm_content=outbound_link_15&utm_medium=email

Rare intensification proposed for the Danforth. Toronto’s Danforth Avenue has managed to avoid intensification for many decades, shunning the availability of the subway and ‘developable’ sites. ‘We built it and they didn’t come’ could have been the refrain. Things could be changing if a proposed redevelopment at Main and Danforth comes to fruition. In its favour is that existing residential buildings are to be integrated into the new project, with major improvements in public realm.

https://urbantoronto.ca/news/2022/09/five-new-buildings-proposed-intensify-main-square-site-danforth?s=09

 “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 - November 1, 2022

Comments–

The data is beginning to show a slow and measured return to work in the office. Anecdotally, we are seeing companies who have a higher rate of in-office work claiming a productivity and competitive advantage. As new challenges emerge in the economy will employers start to insist on more in-office work. How flexible will employers continue to be and maintain a pre-COVID level of productivity. Mondays and Fridays are the lowest attendance days of the week. On Wednesday and Thursday attendance in some sectors is crowding 60%, a sign that employees are valuing more work time in the office.

Vacancy in the downtown has not been significantly impacted by remote work but this may not be true in non-core locations. Suburban return to the office is now above 50%, but vacancies in the office market in most non-downtown locations is increasing.

Stay safe,

Your SRRA Team

Links to Articles of Interest

Dig beneath the headlines! 

Are we going to be stuck with this horrid term ‘quiet quitting’? Or will reason prevail?

One of the least attractive ideas that we have come across in the past few years is the notion of ‘quiet quitting.’ It’s one thing to be bored at work but another to celebrate this feeling by suggesting that it is okay to be ‘turned off’ then ‘drop in’ to work but then ‘tune out.’ (Apologies to Timothy Leary.) A more useful debate would be to track productivity, which some say is plummeting.

https://www.msn.com/en-ca/money/topstories/quiet-quitting-is-picking-up-speed-as-workers-tune-out-from-their-jobs/ar-AA13S623?ocid=entnewsntp&cvid=12fb650f3fd34e28b160b3d893ed2175

Google shows the way in Montreal with a deliberate move to create a regional HQ to be proud of. The challenge for any CEO these days is to make commitments to investing in quality office space when interior design has slipped down the list of priorities. https://www.theglobeandmail.com/business/industry-news/property-report/article-from-paper-to-digital-googles-new-montreal-office-evokes-the-past-and/

Taking 10,000 steps to a new level. How a major UK fitness chain is seeing a link between revival of its business and a growing number of ‘bodies on the streets.’  There is so much fluctuation from week to week in cities across the world when it comes to spotting trends but one business owner is suggesting that his fitness chain is a useful way to gauge the mood. It goes without saying that if you are willing to huff and puff on an exercise bike along a dozen other fitness hopefuls you probably will not worry too much about sharing space around the water cooler. https://www.cityam.com/barrys-office-return-comes-hand-in-hand-with-thriving-fitness-industry/

From the ‘can you believe it?’ file…The Atlanta office of the EPA has been forced to delay a planned return to the office for its hundreds of employees owing to a rat infestation. After several delays and most recently a complete breakdown in the search for a satisfactory solution, EPA staff are no closer to getting back into their cubicles in Atlanta than they were last spring. Part of the problem, it has been suggested, is that rats were initially attracted by leftover snacks and lunch bags never cleared away after lockdown first came into effect. Add the appeal of tasty office plants, and the rats have managed to achieve critical mass in massive numbers that exterminators cannot overcome. Although many employees apparently despise having to work from home, returning to a rat-infested office environment is a non-starter. The irony is that dealing with this kind of issue is part of the EPA’s wide-ranging mandate!

https://www.newyorker.com/magazine/atlanta-postcard

A survey of Canadian architects detects ambivalence and mixed messaging regarding returning to the office. This editorial from Canadian Architect highlights that even in a discipline where collaboration plays a key role in successful designs, younger workers are demonstrating ambivalence when it comes to a commitment to being present in the office. One of the complaints frequently cited – in offices large and small – is that staff find it hard to be productive in traditional open plan office layouts due to lack of privacy and noisy interruptions. Ironic, no?

https://www.canadianarchitect.com/editorial-back-to-the-office-or-not

Could Nokia’s plans for Kanata North become a model for tech and office parks across Canada?

As reported earlier on this page, the rumoured transformation of Kanata North to a pedestrian-friendly mixed-use work environment was made official at a recent event in Ottawa attended by the Prime Minister. Industry observers are cautiously suggesting that this move by Nokia could be the first of many initiatives across the country aimed at improving the ability of communities to attract and retain top talent.

https://www.kanatanetworker.com/nokia-to-transform-its-kanata-facility-into-world-leading-sustainable-5g-and-cyber-security-hub/ 

 “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 - October 15, 2022

Comments–

Although the Index, a measure of average weekly office attendance in downtown Toronto, isn’t as high as expected by mid October, more and more employees are returning at least once a week. Interviews with human resource professionals suggest that this will continue until a balanced competition for good jobs returns.

Employers believe overwhelmingly working remotely is not as productive as many believed early in the pandemic. If this is the case, employers will start to limit the allowable amount of remote work in a wider range of functionality.

Suburban return to the office is now above 50%, but vacancies in the office market in most non-downtown locations is increasing. More on that in the November Index where we will comment on the impact of WFH on vacancy levels throughout the region.

Stay safe,

Your SRRA Team

Links to Articles of Interest

Dig beneath the headlines! 

An ode to the value of data…This Bloomberg article about Kastle Systems Inc. takes us back to the dark days of April 2020 before it was obvious that information on the number of people working in the office vs working remotely was going to become so vital to all kinds of decision makers.

Using its unique building access swipe card data as the foundation for tracking office occupancy in thousands of office buildings in hundreds of U.S. cities, Kastle discovered a brand-new way to view the value of its sophisticated systems.  Interestingly, the six largest BIAs in downtown Toronto (and the City) also had the foresight to understand how important and valuable tracking office occupancy could be when they agreed to fund SRRA’s role in developing and producing the occupancy index back in March 2020. Although the methodologies and scope of the two approaches to tracking office occupancy are clearly very different, there is little doubt that providing unique data to public and private sectors decision makers helped to keep the practical and economic penalties associated with large scale work from home trends in full view. The Bloomberg article, complete with graphic illustrations, traces changing perspectives on remote work over the past two and a half years, and in doing so highlights significant differences between U.S. and Canadian practices. As the only Canadian jurisdiction to benefit from regular, accurate estimates of office occupancy from the outset of the pandemic, Toronto provides an essential basis for understanding the complexities inherent in what drives the white-collar economy.

https://www.bloomberg.com/news/articles/2022-10-13/will-remote-works-ever-return-to-office-this-company-is-trying-to-find-out?cmpid=BBD101322_CITYLAB&utm_medium=email&utm_source=newsletter&utm_term=221013&utm_campaign=citylabdaily

But every data set has its drawbacks. This article highlights a weakness in Kastle Systems data set that says many high profile, higher quality office buildings in New York City are not included in Kastle’s data conclusions.

The reason this is worth noting according to those in the know is that although the net cast by Kastle’s data is wide, it includes many A and B buildings in the cities it reports on. A significant number of ‘trophy’ buildings are not part of the company’s survey and this is significant because occupancy tends to be higher in ‘better’ buildings, according to the source quoted in the New York Post.  In Toronto’s downtown, SRRA’s reporting is based on occupancy based on a broadly comprehensive range of properties and is not limited by focusing on a landlord’s portfolio of properties.

https://www.bisnow.com/new-york/news/office/kastles-back-to-work-data-doesnt-include-most-of-nyc-biggest-office-portfolios-115929?utm_source=outbound_pub_5&utm_campaign=outbound_issue_61831&utm_content=outbound_link_2&utm_medium=email

Messaging through the media can have both a positive and negative impact. A unique data set focusing on Canadian tech start-ups on their way to billion-dollar stardom brings some sunlight to grim commentaries on an impending recession.

Even as economic commentators lament the lack of IPOs on the Toronto exchange, here is evidence from a Waterloo-based NGO (Communitech) that the tech sector in Canada (including Toronto) is alive and expanding. For more than a decade, Communitech has been providing a high quality ‘brick and beam-like’ environment for tech start-ups in downtown Kitchener. Team True North was created to emphasize the depth and breadth of tech talent across the country. As with Toronto’s success with King-Spadina and King-Parliament, supported by innovative planning policies back the mid-1990s, Kitchener’s tech scene has grown from strength to strength in part because that city actively pushed the regeneration of former brownfield industrial properties.

https://www.blogto.com/tech/2022/10/17-toronto-tech-startups-become-billion-dollar-companies/

Goldman Sachs is almost back to pre-pandemic occupancy levels says its CEO.

One of the industry’s most outspoken opponents of remote work, David Soloman says that for the kind of work done by his company, it is essential that staff be back in the office – particularly important for younger workers, as personal growth and the work environment are clearly connected from his perspective. In case there was any doubt about his views, Solomon doubled down on earlier statements about remote and hybrid work situations, declaring that remote work is "an aberration that we are going to correct as quickly as possible." 

https://www.businessinsider.com/goldman-sachs-return-office-policy-65-percent-workers-wfh-2022-10?amp

Only in the U.S.? Landowner wins fight to sell ‘prime’ land that is underwater!

There really isn’t a problem here guys. The owner says he is willing to bring in enough fill to get the site up to the right grade. Could this be a solution for the owners of water lots in Ontario?

https://www.bisnow.com/south-florida/news/land/submerged-4-acre-land-in-boca-ratons-intracoastal-waterway-on-the-market-for-43m-116055?utm_source=outbound_pub_58&utm_campaign=outbound_issue_62030&utm_content=link&utm_medium=email

Inspired by the province of Ontario? Surely not. Mayor Adams of New York looking to spur affordable housing by cutting environmental regs?

Probably just a coincidence, but when the chips are down politicians get creative. Ensuring capacity in the schools? Overrated. That’s never been a problem here, just add a warning at the point of sale. The move in New York is still just a rumour but another example of the appeal of blaming approval time lines for the drop in housing affordability.

https://www.bisnow.com/new-york/news/multifamily/adams-considers-dropping-rezoning-procedure-in-attempt-to-jump-start-housing-116062?utm_source=outbound_pub_5&utm_campaign=outbound_issue_62053&utm_content=outbound_link_2&utm_medium=email

Why relying on headlines alone can steer you wrong!

The academic study cited below claims that hybrid work supports happiness and increased productivity. But it is important to know that the research focuses on the experience of call centre workers in China.

https://www.bisnow.com/london/news/office/major-academic-study-into-hybrid-work-finds-productivity-and-happiness-rise-116060?utm_source=outbound_pub_16&utm_campaign=outbound_issue_62059&utm_content=outbound_link_2&utm_medium=email

Finally…. Sometimes you need an individual to act as the saviour for arguing for an important city-building project. Or to stand against a city-destroying project.

Blanche van Ginkel counts among Canada’s saviours in the latter category. Among her accomplishments, she and her late husband Sandy were behind the planning of the Montreal Metro and the master plan for Expo ’67. But Blanche also single handedly (according to legend) stopped an elevated highway proposal in the 1950s that would have devastated what we know today as Old Montreal. She actually had to get a private members bill passed by the Quebec legislature to establish what became the Order of Urbanists of Quebec to avoid being sued by the highway engineer for practicing engineering without a license!  She also was instrumental in creating the zoning that protects view of the mountain from downtown Montreal to this day. So who would you nominate saviours working for or against city building in the GTA?

https://montrealgazette.com/news/local-news/blanche-lemco-van-ginkel-saviour-of-old-montreal-dies-at-98

 “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 - October 1, 2022

Comments–

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

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

Your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

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

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

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

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

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

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

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

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

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

 “The Occupancy Index is supported by the City of Toronto, Financial District BIA, Bloor-Yorkville BIA, The Waterfront BIA, Downtown Yonge BIA, St Lawrence Market BIA and Toronto Entertainment District BIA. It is a measure of the percentage of office employees returning to the office compared to the number of employees who would normally have come to their offices pre-COVID. For a detailed description of the calculation please contact Iain Dobson at [email protected],”

Occupancy Index - September 15, 2022

Comments–

The post Labour Day data shows some increase in office attendance, however, the surge anticipated in September is only beginning to be felt late in the week of September the 12th. The return to school likely contributed to a slow return at the beginning of the month. A three-day week for those who are coming in regularly has not changed, few report a broader return during the week. Some large companies are starting to see more in-office work, and we expect that that will change toward the end of the month raising the Index further.      

Your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Research involving interviews with CEOs across the globe published by the Harvard Business Review focuses on changing perceptions about hybrid working conditions. When the employees of one of Japan’s largest tech companies were surveyed a number of years ago the vast majority thought the “best place to work was the office.” After the shock of COVID, when everyone was forced to work from home, a more recent survey found that the opportunity to avoid long commutes had caused employees to reconsider their feelings about being in the office. Senior management plans to dedicate more resources to staff training, taking into account two key variables: place and time. “If leaders and managers want to make this transition (to hybrid) successfully, however, they’ll need to do something they’re not accustomed to doing: design hybrid work arrangements with individual human concerns in mind, not just institutional ones.”

https://hbr.org/2021/05/how-to-do-hybrid-right

 American CEOs are pushing ESG initiatives focused almost entirely on net zero solutions. As with many emerging ‘new’ priorities – think cyber security – finding and retaining experienced executives to implement promises made in the headlines of press releases is easier said than done. Evidence from the U.S. described below suggests that landlords and portfolio managers are competing with each other for talent to implement net zero strategies as part ESG commitments. The rationale for concentrating on improving energy performance is also a practical, though, as CEOs look to control costs but also the ability to position their real estate assets as attractive to investors and potential tenants from an environmental perspective.

https://www.bisnow.com/national/news/top-talent/real-estates-esg-push-leaves-firms-fighting-for-talent-115604?utm_source=outbound_pub_5&utm_campaign=outbound_issue_61251&utm_content=outbound_link_6&utm_medium=email

 Post Labour Day office occupancy levels dropped back slightly in New York and other large U.S. metros after a major push by employers to get their people back into the office. The dynamics are complex. Kastle Systems data, which relies on key card swipes, suggests that employees in the finance, tech and media sectors are still in the driver’s seat in a tight talent market, prompting even large financial players like Goldman Sachs to ease back on harsh directives. But in sun belt employment clusters, where fear of layoffs appears to be more prevalent, occupancy levels are much higher. In New York, subway and commuter rail ridership has been on the increase, although numbers are still way below pre-COVID levels. The need for federal bail outs to the MTA has not yet gone away.

https://www.crainsnewyork.com/economy/nyc-office-occupancy-dips-slightly-after-labor-day-push

 Transit agencies across North America struggling to find and keep their drivers. The cries for more funding continue but human resources execs are also fretting about the fundamental challenge of finding the personnel needed to get the job done.

https://www.smartcitiesdive.com/news/transit-agencies-bus-operators-driver-shortage/631651/?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%20Weekly%20Roundup:%20Smart%20Cities%20Dive:%20Daily%20Dive%2009-24-2022&utm_term=Smart%20Cities%20Dive%20Weekender

And finally, a long article that digs into some of the many reasons why former TTC executive Andy Byford felt it was time to put a cap on his public service career following two and a half years leading Transport for London.

In addition to serving the transit needs of nine million souls in Greater London, TfL must also support one of the world’s most significant tourist destinations – 12 months a year. Take a ride on the fabulous new Elizabeth line (20 minutes from Paddington to Canary Wharf), or any one of the 11 lines serving nearly 300 stations that comprise London Underground (that’s not including the Overground or any of the light rail extensions), and you are guaranteed to have to share your space with visitors and their luggage – an essential role provided by the tube that is often overlooked. TfL carried around 5M passengers a day prior to COVID (all modes). After a very difficult 30 months, ridership is finally beginning to increase (see https://tfl.gov.uk/info-for/media/press-releases/2022/february/latest-tfl-figures-show-continued-growth-in-ridership-following-lifting-of-working-from-home-restrictions)  but the damage done to TfL’s balance sheet by the pandemic will take years to recover. For a transit executive who prides himself on providing exemplary service to all sectors of society, the possibility of having to cut back services to balance the books must have been a dire prospect. That problem may have been handled for now but transit habits have changed as a result of COVID – not just for commuters, but for everyone.

Even in Toronto, there are signs that it is high time to focus on the mobility needs of a region. Transit is no longer – if it ever was – just about connecting home to work. Post-COVID (fingers crossed) ridership trends suggest that Torontonians and visitors are relying increasingly on transit for all manner of trips seven days a week, not just the commute. Continued investment in the GTA’s public transit network is about protecting our growing region’s mobility needs.

https://www.onlondon.co.uk/interview-andy-byford-on-tfls-new-funding-deal-pensions-negotiations-fares-and-driverless-trains/

 “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 - September 1, 2022

Comments–

The remainder of August showed little change, but in September we are seeing an increase in the number of workers attending downtown offices. Almost every company we have talked to expects September to see more people spending more time in the office. However, few companies have gone so far as to mandate that return preferring still to allow options where tasks allow for remote work.

We at SRRA, will be expanding this report to provide more commentary, on how labour markets are affecting employer’s attitudes to post pandemic remote work and explore how remote work will affect office markets…      

Your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Just before Labour Day, RBC president Dave Mackay was quoted in articles (see most recent Occupancy Index) and in a LinkedIn post strongly endorsing the value of in-person interaction that comes from having staff return to the office. His wise words have since shown up in many subsequent articles such as the one below that present a balanced set of views on the future of office work. The CBC piece (which quotes Iain Dobson) also introduces a neat new term – ‘the next normal’ – to describe Deloitte’s take on hybrid work schedules. It also breathes life into a more troubling term going the rounds – ‘quiet quitting’ – suggesting that employers need to remain flexible to keep staff happy. The quote most likely to startle, however, is attributed to the head of the federal government professional employees’ association, criticizing gentle urging from the government that encourages a return to the office. "No real justification is being brought forward," he complains. Huh?

https://www.cbc.ca/news/business/canada-return-office-wfh-fall-pandemic-1.6570575

Shakespeare may have said ‘Kill all the lawyers,’ but evidence from the U.S. suggests we may all have something to learn from this oft-maligned group, with Kastle Systems reporting that lawyers are returning to the office at a higher rate than everyone else. “For [a first-year associate],” says one senior partners, “being able to sit and watch how we work through things, in person was much better than it would be if he (or she) was trying to watch it over Zoom or on the phone.”

https://www.bisnow.com/national/news/office/law-offices-have-become-a-hot-tenant-in-the-pandemic-era-office-market-114557?utm_source=outbound_pub_58&utm_campaign=outbound_issue_60551&utm_content=link&utm_medium=email

A ‘line in the sand’ drawn by some major U.S. employers, who say it’s time to come back to the office. ‘We mean it this time,’ some execs are quoted as saying. The reasons or rationale vary widely, but there are suggestions that those who choose to push the hybrid envelope (a mixed metaphor but worth it?) could find that their jobs are the first to be cut when the economy slows. HR professionals are also beginning to use terms like ‘career trajectory’ as they look at the plight of younger staff who have not yet had a chance to make their mark.

https://web-prod.bisnow.net/national/news/office/the-office-is-no-longer-a-choice-in-widespread-worker-crackdown-115309?utm_source=outbound_pub_60&utm_campaign=outbound_issue_60672&utm_content=story&utm_medium=email

A parting of the ways when it comes to trend lines? U.S. stats on office vacancy rates and the pace of increases in residential rents have traditionally followed similar patterns but Moody’s

Analytics (a subsidiary of one of the firms that did such a great job with the sub-prime mortgage crisis back in 2008) is pointing to the impact of remote work as a factor reducing the gap between big ‘gateway’ cities and their smaller brethren. Although the U.S. has a disproportionately large number of major cities compared to Canada, could a similar trend develop in Southern Ontario relative to the GTA?

https://www.bisnow.com/national/news/multifamily/remote-work-multifamily-office-values-diverging-markets-flattening-114511?utm_source=outbound_pub_58&utm_campaign=outbound_issue_60551&utm_content=link&utm_medium=email

New York’s heavy hitters in the financial sector making no bones about wanting employees back in the office. All remaining barriers to a return have been removed, they suggest, although some still want to be flexible – within reason. Threats of a recession are starting to shift the balance back in favour of employers some observers say. One HR consultant puts it this way: “As you start seeing some layoffs happening, people will say, `Woah, I don’t want to be laid off, I want to be in the office and have bosses see that I’m working really hard.’” And to reprise an insight from the New York Times: a top HR person in the financial sector worries about younger workers starting out who have never had the opportunity to develop relationships or acquire mentors.

https://www.bloomberg.com/future-of-work

Premier Ford is pressuring Ontario’s municipalities – including suburban municipalities – to increase densities as a way of growing the housing stock. Boston, one of the U.S. eastern seaboard’s most interesting large cities, has long struggled with housing affordability – in the early 00’s employers were leaving Boston in droves as they fought to hold on to valued employees. Now there are reports that developers are seizing on opportunities in suburban Boston stimulated by State requirements for minimum densities. Ontario has dabbled with the concept but not at this scale.

https://www.bisnow.com/boston/news/multifamily/gov-bakers-finalized-mbta-communities-rules-114572?utm_source=outbound_pub_58&utm_campaign=outbound_issue_60551&utm_content=link&utm_medium=email

‘Flexibility’ is trending as a word that companies are deploying to describe their collective ambivalence, puzzlement and uncertainty regarding how to bring workers back to the office. This NYTimes piece also introduces the notion that working with colleagues in the office generates energy – something that some say is difficult to replicate when working virtually. Another word for ‘energy’ is enthusiasm – a trait that any employer should value – regardless of whether their employees are working in the office, remotely or within a hybrid arrangement.

https://www.nytimes.com/2022/09/04/briefing/return-to-office-labor-day.html?unlocked_article_code=mO9uWtDT1CsNyJjHDfdtbBe2_XO5wBqCdpWxOUQQw-moG2jz5Tk_WAzyXDoxw8woLKtyKLXELmo6NYW713aZtS9MCJhZmzXVpRrAhectNf4U_n30Y3lVymgbSULlq9kRI9jrbUoEE3m7fbmCkh-8leKm21ZsMm686rCXn569POZJ0Qw3ihY-UYJeaFMD33iptAFA3nM_ObepGxqNrc_mixMANkvVifbVVuBg6CaGSMgwsEoiB3ARF2jShGGjnUrJdL-Mfd_rO0XKX4ehaDj_QDj5smfaxHTAtBHiyQjGYbCEMJiX1ggWKExjjogY6Uvd4DLR5St7UMqeBu1yFFB-p3uQjT0L&smid=em-share

 Commentaries on the strength of the London office market underscore the value of matching knowledge and expertise to raw data. The ability to track change across a complex geography like Greater London is key. Increasingly, it seems, simple averages (such as vacancy rates) can mask important variations across a single market. SRRA’s unique value proposition (which relies on a combination of powerful data and expert commentary) is a case in point.

https://www.bisnow.com/london/news/office/brum-scitech-114589?utm_source=outbound_pub_187&utm_campaign=outbound_issue_60682&utm_content=outbound_link_4&utm_medium=email

New York is grappling with the ultimate ‘third rail’ issue – congestion pricing – as the city struggles to shore up depleted funding for organizations like the MTA. The underlying message seems to be that New York foresees a need to continue to invest in its transit infrastructure to keep the region moving while also making progress on its climate goals.

https://www.bisnow.com/new-york/news/economy/office-landlords-applaud-small-business-owners-frets-as-new-yorkers-await-final-congestion-pricing-114626?rt=88645&utm_source=outbound_pub_5&utm_campaign=outbound_issue_60656&utm_content=outbound_link_4&utm_medium=email

 Notes from random CBC interviews with people hired during COVID who are still working remotely. “Describe in one word how you feel about remote working.” ‘Expendable,’ said one. ‘Anxious,’ said another. ‘Relieved,’ said a third, referring to the benefits of never having to meet in-person with a co-worker with a horrible personality.’

 “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 - August 15, 2022

Comments–

August fell short of expectations with a slight decline in the first 15 days. Companies over 1,000 employees are reporting less attendance while mid-size and small companies report a higher level of occupancy. August holiday taking is clearly impacting activity in the core.

Mondays continue to be the weakest day followed by Fridays.

While transit ridership is increasing steadily across the board, interviews indicate that serious traffic congestion in the core is be not helping encourage in-office work. Can transit operators appeal to office workers in the Fall when schools are back?        

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Head of RBC comes out strongly for a return to the office. “Face to face interaction is a business necessity” he says.

U.S. survey confirms essential role of offices but major employees concede that offering hybrid options key to successful recruitment

Many Canadian employers ambivalent about requiring a return to the office, with job postings in many sectors using hybrid as a recruiting tool. In short: all over the map!

Failure to maintain ‘state of good repair’ in Boston could harm bid to encourage a return to the office as two major transit lines face extensive closures to undertake repairs

Toronto’s tough stance on lockdowns contributing to slow recovery study suggests

A UK perspective on the costs of working from home. Is this in Canada’s future?

A shift in thinking about returning to the office sparks a sudden 180 from a large employer in the U.S.

Moves by large employers in the U.S. blend relocation to less space, consolidation and desire to save costs even as they increase their numbers.

News from Chicago highlights stark differences between Canada and the U.S. as executives ‘flee’ unsafe cities

Bolshie Apple staff demand flexibility to set working conditions

 “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 - August 1, 2022

Comments–

The future of work from home is challenging the “C” suite, strategic planners, and HR departments everywhere. Organizing corporate culture remains the number one objective while the home is still the majority place of work. More and more employees are making the return at least a few times a month, we estimate this number to exceed 60%.

Most companies are targeting September for a higher ratio of in office work. We began to see this during the last two weeks of July and expect it to continue in August.

Enjoy the rest of the summer!          

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Thoughtful review of ever-changing perspectives on remote work and the challenge of sustaining a company’s work culture, recruiting and retaining workers and more. A MUST read.

Veteran HR professional argues that decisions on whether to return to the office are rarely black and white, and fail to place appropriate emphasis on the value of creating quality in-person work environments that respect differences.

Britain embracing hybrid work with a vengeance – google searches and LinkedIn postings confirm

Sometimes even an author with a vested interest is worth reading. The founder of IWG offers some insights worth thinking about.

Calling all bean counters. New evidence that hybrid work can save employers money

Economist ponders the issue of career trajectory – what will be the thinking five years into this new reality?

Major U.S. employer skirts the issue on ‘mandate’ but makes it clear that their people must be in-person at least three days a week

Famous ‘outsider’ opines on the role that can be played by being present in the workforce - even though he wouldn’t be caught in an office to save his life

 “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 - July 15, 2022

Comments–

We have been asked by many of our contributors…’does the Index take into account seasonal holidays?’ The simple answer is no. Holidays in general, sick days, business travel, other reasons for not being in the office and pre-pandemic remote work was determined as part of the methodology for establishing the normalized attendance in offices pre-COVID. One could assume then that the Index in July is partly affected by summer holidays.

If you are reading this and you are on holiday, enjoy.           

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

This just in…Working from home can be bad for your health

How the U.K. has contrived to make hybrid work arrangements even more complicated….Pilot to test 100% pay for 80% hours

Flex offices (up), Zoom (down) and many other firms react to volatile work environment

Return to the office rates differ across the U.S. – with a suggestion that tenants using this period of uncertainty to upgrade their space into newer buildings with more amenities

And now for something completely different as Monty Python used to say…Not so subtle knock on Canada in general and Toronto in particular regarding our appetite for tech in the public realm

Signs of nervousness in the UK about the return of COVID affecting occupancy levels

 “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 - July 1, 2022

Comments–

Companies are reporting a slight increase in the last two weeks of June. Public transport is continuing to build back, but mask wearing appears to be on the decline on the subway system. The potential of a recurring wave of COVID is not yet deterring people from returning to work and we still do expect the Index to reach 30% by the end of July.

HR specialists and employers are reporting an expectation of an increase in in-office work in September providing the latest COVID figures do not result in renewed isolation.

Enjoy the summer weather.           

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

How Myths Perpetuate: Will Globe Survey Fuel Angst About Returning to the Office?

Former Sears Tower rethinking use of office space

Perfect Storm of Confused Governance, Lack of Funding and Declining Ridership – Why Washington’s Metro is in Deep Trouble

Office culture in the spotlight. Thinking through ways to make being in the office more meaningful (oh, and then there’s that thing called doing your job)

Tracking signs of life in business districts: Sandwich shops, dry cleaners and more

Connecting capital through investments in transport: London growth could be slowed by government support for ‘levelling up’ (code for directing money to anywhere but London)

 “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 - June 15, 2022

Comments–

The slow yet steady return to the workplace continues. Public transport is reporting increased ridership with weekend travel exceeding pre-pandemic and in some cases weekday travel. These trends are similar to trends in New York City and London where the reliance on public transportation is critical to the return to the workplace.

Many employers are citing COVID fatigue, newfound acceptance of partial work at home by employees and economic uncertainty driving a slower than expected resumption of in-office work. Employee retention remains employer’s principal motivation for pandemic levels of remote work in the short term. We continue to believe the Index will reach 30% prior to August…      

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

From the Globe and Mail: The HR chief who saw it all: RBC’s Helena Gottschling on what it takes for employers to thrive as the pandemic fades

Does the experience of Midtown Manhattan have lessons for pockets of downtown Toronto with older office buildings?

The U.S. level of return to work in the office is edging up but still some push back on ‘mandates’

 Vancouver aims to supplement transit revenues by raking in real estate profits

 Yelp to shift entirely to remote working – An example of work carried out by individuals not a team

 New York Chamber banks on rebuilding its vibe with a move to a people place

Enhanced productivity versus lost opportunities for promotion: Harvard Business Review poses strategic choice for those debating the merits of remote work versus returning to the office

Local transit agencies say ridership increasing but see revenue challenges ahead

Flexible workspace the key to improving workspace culture?

Fall-out from pandemic affecting kitchen designs as many continue need to work remotely

 “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 - June 1, 2022

Comments–

We estimate that between 38% and 40% of the employee base are now coming to the office at least once a week. This is indicating that employers are finding ways to organize in office activity without a full mandated return. Employers are not expecting a surge of returns for the summer except for new hires.

Employers find that organizing the workplace in the same fashion as the pre-pandemic workplace is highly unlikely in future. Once there is stability in the economy and balance in the labour supply markets the real impact of non-office-based work will be measurable and its impact on demand for office space more predictable. We still expect that the Index may reach 30% prior to August.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Focus on improving the commute! Survey suggests that the journey to work is the biggest deterrent to returning to the office for employees – if you have time to read only one of these articles, choose this one.

More variations on hybrid working, with some opting to visit the office only once a week in major U.S. cities

U.S. experience with return to the office showing signs of distress as employees chafe against employer demands

New York landlords and employers looking for inspiration in the quest to lure workers back, casting doubt on the future of ‘B’ class buildings

Surveys of Canadian employers are similar to trends found across North America, as predictions on a return to the office continue to reflect uncertainties and doubts about when or even if employees will be back.

Cultural differences highlighted in diverging trends between Europe (sic) and U.K., with the latter opting for WFH over the office

Provocative Musk lays down the law on return to the office for Tesla

This is only one of dozens of articles covering Musk’s recent pronouncements. His hard line approach masks attitudes to remote work that most have discarded.

CBC journalist/physician sets out some thoughtful ideas about unappreciated benefits of returning to the office

 “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, 2022

Comments–

The steady increase in people choosing to work in the office appears to be slowing down as summer approaches. Travel downtown is increasing on Fridays, but Mondays remain slow. Both these trends are occurring in New York City and London although the return to the office figures are higher 33% and 31% respectfully.

Employees who are choosing to stay in the home office are less concerned about a new variant and or travel on public transit than other factors. Employers remain reluctant to insist on returning to the office more than a few times a week. We are still expecting the Index to reach 30% but not until late June.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Lack of consistency methodologies among U.S. brokerages seeding confusion about long-term prospects for office space

Insights from recent SRRA Forum echoed by findings of global RTW surveys: important checklist to calibrate views about WFH and more

U.K. office workers – particularly those in finance – resisting calls for return to office

If enough headlines get written, anecdotes can become ‘fact’

 “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, 2022

Comments–

The significant voluntary return in April established an employee preference for a partial week centred on Tuesdays, Wednesdays, and Thursdays. There are several companies who are still below 5% and whose plans are focused on a back to the office strategy for September.  

 At the same time there are also companies who are already at 40% or greater normalized over a 5 day work week. From our recent interviews transit does not appear to be the most important consideration as it was earlier in the pandemic

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

CBRE using post-pandemic uncertainty to trial an office designed for a hybrid world

After U.S. national mask mandate struck down, most large cities ‘encouraging’ commuters to stay masked – some even providing free masks for patrons to help raise ‘comfort level’

Changing government policies on return to the office illustrate the minefield represented by WFH vs in-office practices

Co-Working sites attracting attention from investors in U.S. and Canada

Calls for transit agencies to step back and take a more holistic view of their bus networks. Would such a move help TTC and GO reorganize some of their routes?

The U.K. government is channeling significant funds to spark innovation in the country’s transport system

 If nothing else, the tug between WFH and return to the office is giving opinion writers a bonanza!

 “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, 2022

Comments–

There are moments when the core seems to be back to life. But the data still shows that people are reluctant to come downtown on a regular basis. Employers are attempting to make the hybrid model work, but employees are not voluntarily giving up the flexibility and cost savings of a partial return to the office.

Most major employers are attempting to implement return strategies for late April and May, but the take up hasn’t materialized in significant use of the TTC or GO. Mondays and Fridays are now the ‘work from anywhere but the office’ days.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

After U.S. national mask mandate struck down, most large cities ‘encouraging’ commuters to stay masked – some even providing free masks for patrons to help raise ‘comfort level’

Changing government policies on return to the office illustrate the minefield represented by WFH vs in-office practices

Co-Working sites attracting attention from investors in U.S. and Canada

Calls for transit agencies to step back and take a more holistic view of their bus networks. Would such a move help TTC and GO reorganize some of their routes?

The U.K. government is channeling significant funds to spark innovation in the country’s transport system

 “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, 2022

Comments–

Many companies are now planning significant return to the office in April. Plans vary from 100% return by some small firms to variations of a partial and more obligatory attendance in the office. As a result, the Index may reach 25% by the end of the month.

Most companies are more insistent on some form of attendance in the office, however, an increase in sickness due to a resurgent in variations may dampen that enthusiasm. We are now seeing parking occupancy nearing capacity and an increase in subway use in the core.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

This NYT articles offers a brief ‘good news’ respite from talk of hybrid work patterns. Sometimes we need an outside observer to remind us what is happening in our own back yard

Local transit riders typically keep the guard up, for now...

Co-working space undergoing a revival?

Comparing events attendance to a return to the office shows continuing resistance in the U.S.

Even if workers return, will local retailers/restaurants feel the benefit? U.S. examples suggest that food delivery apps may try to muscle in to serve returning workers

U.S. employers brace for continued uncertainty, split decisions on hybrid versus mandated return to the office

Time for Midtown Manhattan decision makers to hold their nerve? With one the most previously vibrant office clusters in the U.S. currently performing below par, New York planners are resisting temptation to open the gates to adaptive re-use.  A true test for policy makers.

Pessimistic perspective from the U.S. on prospects for the recovery of municipal revenues as downtown economies continue to suffer

Major bank survey suggests that return to work numbers have peaked in many jurisdictions – suburbs outperforming central areas

 “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, 2022

Comments–

Suits are once again filling up the PATH. Many are returning to the downtown for the first time since last Fall. While March break may have slowed the momentum some, there is no question that permitted voluntary return to the office is finally being taken up.

From our interviews, we anticipate 25% return by the end of April.  While some companies are requiring attendance in the office some of the week, few are requiring more. Only a handful of companies insist on a full return. Office space in the 905 is has reached 30% occupancy for the first time.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

 If you read nothing else in this batch of links, please take a moment to read the wise comments from Google’s CEO

Or maybe this piece from the Economist. Many of the insights in this article would seem to be intuitive but that of course goes against the grain of the hopes for hybrid working pitched by so many….

U.S. survey suggests that women who left the work workforce during WFH are starting to return

Oxford misfires on its welcome back to the office signage

U.S. markets probably a cycle ahead of Toronto’s return to the office but employers forced to be creative in persuading workers it’s a good idea to come back

Texas always bigger than life size – claims most progress on return to the office

“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, 2022

Comments–

The second anniversary of COVID in Canada and the March break for students is upon us. Though March may not see a further spike in the Index, expect more companies to start putting plans for work in the office into action.

From our interviews, employee demand for some in office time and employer’s efforts to reorganize the employee experience will push the Index to 25% by the end of April and possibly more. Office space in the 905 is already over the 25% occupancy level and this week’s articles below reveal a more bullish attitude to in office work.

Stay safe, your SRRA team.

Links to Articles of Interest

Dig beneath the headlines! 

Remote vs. office work: Don’t obsess over what employees want, instead answer these questions

Toronto mayor leading by example, encouraging people to return to the office

The banking sector in Toronto steps up with a decision to bring workers back to the office in March

Meanwhile, in the U.S. the return to working in the office is uneven at best – New York mayor pushing for a rapid return

Hybrid – No longer a term confined to cars!  Employers struggling to manage their way through conflicting messages…many firms see their workers in the driver’s seat when dictating work patterns

Meanwhile, in Chicago…a survey of top executives brings unexpected, unequivocal support for a return to the office (“Companies are finding out that while this experiment has shown we can do things differently, it’s also shown why people congregate in offices in the first place”)

“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, 2022

Impact of Reduced Restrictions –

 Activity since Valentines Day has increased, and early indications are that employers will start bringing people back in earnest in March. Transit use remains low in the subways serving office space despite the extensive efforts of the TTC to reduce the Omicron transmission risk.

 Our limited data on 905 office space indicates that as much as 25% of office workers are back in the office in suburban parks. This underscores the importance of building confidence in public transportation to enable a stronger return in the Downtown. Stay safe, your SRRA Team.

Links to Articles of Interest

Dig beneath the headlines! 

In a lengthy list of places where COVID restrictions are to be lifted, the province manages to avoid mentioning offices! At last count, there were nearly half a million office jobs in the GTA alone, whose presence in the office contributes significantly the economic welfare of local retail, restaurants and more.

U.S. companies focusing on redesign of office space as survey shows few choosing to reduce their footprint

More uncertainty around working from home reported in the U.S., with employers clearly nervous about pushing staff too hard with hard and fast mandates to end WFH

Interesting podcast on approaches being tried in the U.S. to lure workers back to the office

The U.K. office market is seeing a focus on refurbishment as employers use the pandemic as turning point for how to best organize their space – and make it more sustainable at the same time

 Zoom stocks down, hotel stocks up. A fascinating glimpse of the changing fortunes of video conferencing vs hotel occupancy levels.

 An academic claims that that offices of the future will just be a place for workers to socialize. Probably important that we all need to learn how to spot commentary from advocates who search for evidence that fits their world view.

“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, 2022

OMICRON VARIANT

A voluntary return to the office, during the second half of January, resulted in a slight increase in the Index. The Province has started to relax restrictions meant to slow the spread of Omicron. This should have an impact on the February 15th Index. Overall, employers are still unprepared to provide firm dates on return-to-work strategies.

The use of transit remains a key roadblock for many office workers in the downtown core. SRRA conducted a limited study of the return to the office in the 905 and found a higher level of voluntary in office workers. More on this in the next Index. Stay safe, your SRRA Team.

Links to Articles of Interest

Dig beneath the headlines! 

Hot desking (hoteling) was originally designed as a cost-saving measure for accounting firms and the like whose staff spent lots of time at the offices of clients but this article provides examples of some bumps in the road that show up when the concept is applied more generally

Dramatic shifts in travel patterns caused by COVID forcing the TTC to re-think its revenue tools?

News flash! Younger workers need places to live when they leave home.

New York governor challenges workers to return to the office, dismissing concerns about safety, showing support for restaurants and other businesses that depend on office workers to thrive

And now for something completely different. Tired of reading about the impact of the pandemic? Try the report cited in this link which explores why people get passionate and protective about their cities. We talk a lot about the importance of ‘place,’ but this takes the concept to a new level

Boston Consulting Group regularly surveys Australian businesses to plot changes in hopes and expectations regarding the future of work and changes in the workplace. The latest such survey “uncovered a disparity between what employees want and what employers think they want.” Check out this link to see their full report which tracks changing ‘sentiments’ over three waves of COVID

  “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],”