The New Office Era

Written by Marketing Department, Landmark Advisory Services



Covid-19 has undoubtedly changed our relationship with the office. This asset class was one of the hardest-hit when Covid-19 related health measures came into effect, and empty downtown towers became a new reality. Simultaneously, we found out how various sectors of the economy, those located primarily in office buildings, could shift their operations to a remote or flexible work model. In many cases with little or no change in productivity.


Covid-19 has undoubtedly changed our relationship with the office.
Covid-19 has undoubtedly changed our relationship with the office.

While a primary purpose of the physical office is to create a special environment to help employees get their work done easily and in a collaborative way, technologies have proven their capability of replacing the necessity to stay in an office in order to be productive.

Employees have gotten a taste for a freelancer’s style of life without a regimented commute-to-work system.


Employers, in turn, have had to face a range of new challenges such as keeping their teams motivated and supervised. They have also had a new opportunity. Rethinking their space requirements may result in rent savings, allowing companies to spend money differently with a focus on employee attraction and retention.


Although offices will continue to get busier as health restrictions are eased, it is not clear if they will ever return to the way they were. Surveys show that workers want more flexibility and surprisingly, many managers are joining the push for flexible work. A study by business consultancy McKenzie of 800 global executives found that 15% will allow staff to work remotely two or more days a week. According to Altus Group’s survey, 57% of market leaders expect office tenants to downsize as a result of increased work from home.


Some expect that workspaces in central employment districts may become housing or e-commerce fulfillment centers, and some housing in residential areas may become workspaces. The office will become a more consumer-oriented product, and landlords will have to put thought and investment into attracting tenants. Newer buildings with greater amenities will become more in demand.


These changes will be gradual, but they will have a major impact on the office space market. Occupants, landlords, investors, and other parties involved will have to adapt.



ABOUT LANDMARK

Landmark Advisory Services is a commercial real estate consulting firm, specializing in the representation of Corporate Tenants and Occupiers. As an external real estate department, Landmark has acted as an extension of its clients’ businesses for more than 30 years. Landmark can be contacted at service@landmarkcre.ca.