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DO YOU THINK THERE WILL BE MORE DEMAND FOR OFFICE SPACE OR LESS? WHY?
Coronavirus kiboshes co-working Office offers opportunities for alignment and synergy that can’t be achieved from home, and the office energizes and motivates workers to be their most productive. “Though a few companies will unfortunately shut down, the remaining occupants will need more space than pre-COVID, albeit with a lower budget. So, while there will be a drop in what tenants are willing to pay for rent, office demand will remain very, very strong,” he predicted. One casualty will be co-working, “It’s a great concept, but it will raise a lot of questions and concerns about whether people are willing to share space now,” he said. Jeffrey Soliman Principal Consultant Soliman Real Estate
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After the pandemic, will offices require more space than before, or less? “I expect a similar amount of space, but the math of how you get to that demand is going to change. Pre-COVID, it was about maximum efficiency, densification of office space, more people per 1000 sq. ft. We’re seeing a shift from there to say, ‘How do we create office space that allows people to feel the most comfortable?’ My belief is that there is an exaggerated suggestion in the media that companies are going to ‘permanently’ keep their employees working from home, that the demand on their office premises is forever changed. That couldn’t be further from the truth. The reality is that this is all about being fluid and adaptable to the need for space today, and the emotional need for safety. There is nothing permanent about this. Everything about this is about the strategy for the foreseeable future – months, not years.” Cory Wosnack Principal & Managing Partner Avison Young Edmonton
Social side of office needs post-pandemic rethink Some people, who longed to resume their social interactions at work, have returned to find that the office is not as warm or welcoming as they expected. “Social distancing has imposed are so many restrictions on what you can and can’t do,” explained Lorne Burns. “Traffic patterns on floors. Removing coffee machines, microwaves and kitchens. All these things that were done to make workplaces safer coupled with a sense of uneasiness have actually made some workplaces seem less hospitable. Employers thought through the health risks, but not the social dimension, which will also need an adjustment.” Lorne Burns Principal KPMG Do you think we’ll need more, less or the same amount of office space? I think the impact on the office is going to be neutral because we’ll end up having to provide more space for employees, not less. It will be balanced out with allowing staff to work from home and rotating their access to the office environment as they will need to maintain that anchor and sense of belonging to the organization. Bernard Poliquin Executive Vice President Cominar
Canadian Real Estate Forums / SPRING 2020
