Companies rethinking real estate portfolios in light of hybrid work trend

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Time spent at office influencing structural changes, investments, says insider

by Montreal-based financial tech company Hardbacon found that 80 per cent of people who shifted to remote work during the past few years would rather quit than come to an office full time.

Colliers says national office vacancies will continue to rise from the current rate of about 14 per cent to 15 per cent by the end of 2024.It drew a packed crowd, Mr. Mildon says. Another of Oxford’s buildings in Vancouver is opening a 5,000-square-foot gym to cater to about 3,000 office workers. The rise is not all because of hybrid work – changes in the economy and new buildings opening that were planned years ago have an effect too. But “if we isolate hybrid work to determine its impact on vacancy, we estimate that [vacancies] will increase a further 4.5 per cent by 2025,” the report states.

Flexible office space, which can be adjusted quickly for size and use, will make up 8 per cent of Canada’s total office market, Colliers reports. “Companies are rationalizing their corporate real estate portfolios, finding that the capital they have tied up owning buildings and leasing can be put to use in other areas, such as improving technology,” Mr. Berger says.

 

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