We are seeing trends of larger growing companies occupying a smaller office space footprint and fitting more people in smaller work spaces. Why? Well, there are a few contributing factors:
Companies operate differently – More and more companies adapted the “Workplace 2.0” style of operations. Instead of stringent 8am-4pm or 9am-5pm working hours for most staff, organizations allowed more flexible hours for their workers. Instead of assigned workstations, office and workstation “hotelling” or reservation-based seating became a popular practice. There were increasingly more opportunities for staff to work from home. Some organizations even found it more economically sound to outsource some of their administrative or in-office operations to outsiders who wanted to work from home. In addition, part-time and contract hires were on the rise. These trends are likely to continue.
Technological advances – Video conferencing, teleconferencing, Smartboards and other technological advances have lessened the demand for staff to physically meet in the same room, thus lowering the need for large meeting room spaces. The introduction of virtual storage spaces like the Cloud lessen the need for a lot of physical filing and storage space. In fact, physical filing and storage units have been re-purposed to store personal belongings, limiting the need for physical storage to be at the workstation itself. Most work is done on electronic devices (laptops, Ipads, etc) which are physically thinner and smaller. Even signatures are electronic– thus limiting the need to deal with physical paperwork.
Economy – Though demand for commercial real estate remains relatively high in Toronto, there is an overall level of uncertainty about how the Canadian economy will be affected by key international events like Brexit and the US election results. The low oil prices and the low Canadian dollar, however, seem to make Canada an attractive country for international organizations to invest and expand in, which could be why commercial real estate vacancies could experience a slight decrease.
So what gives? Big companies, both local and international, will likely continue to occupy smaller office spaces in order to maintain a competitive edge in a volatile economy.
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DJ McGauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of choice. If a renovation or relocation of your office space is in your plans, please contact us to arrange a no-obligation site meeting. By the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.
Call 416-239-1931, email [email protected] or visit our website for more information and to complete our contact form.
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References:
PWC and Urban Land Institute, “Emerging Trends In Real Estate: Canada and the United States 2017”, http://read.ca.pwc.com/i/741231-emerging-trends-in-real-estate-2017/5?utm_source=communities-etre&utm_medium=social&utm_campaign=emerging-trends-in-real-estate-2017
Kirby, J., Macleans, “75 Charts Every Canadian Should Watch in 2017”, http://www.macleans.ca/economy/economicanalysis/75-charts-every-canadian-should-watch-in-2017/
