RE:WFHThank you for the link Frankie. When Dream Office was $20+ last year, there was a great deal of talk about 'replacement value' and how office buildings were an inflation hedge. I think this is all still true. There is almost no new office construction happening in Toronto (or most other places) after Q4 2023. I would imagine that many companies might settle on 3-4 days per week in the office with say, Monday or Friday (or possibly Monday and Friday) being work from home.
If almost everyone in the company works the same days from home and the same days in the office, then on office days we will have the same amount of people in the office as we did pre-pandemic. We are not there yet however should that prove to be the end result, it will mean that we require the same amount of office space as pre-pandemic since whether people work from home on Monday/Friday has no bearing on what office space is required Tuesday through Thursday.
I suspect that we might even need more office space in the future as employers increasingly value on-site amenities, whether that be restaurants, fitness facilities, mindfullness/wellness rooms, less cubicles and more actual offices for employees, more space per employee, etc. The concept of 'hotelling' seems like the exact way to ensure employees do not have a good experience returning to the office. I think what Dream Office has managed to do with 366 Bay Street in leasing the entire building to a single tenant is a good example of how we could provide employees with a better experience rather than trying to cram as many employees as possible onto 1-2 floors of a new office tower with a 20,000+ square foot floor plate.
Frankie10 wrote: Work from home coming to an end. Even Zoom itself is capitulating... I think those who bought office with cap rates well in excess of risk free rate and have a long-term mind set will make multiples on their investment over the next 5-10 years. Cheers.
https://youtube.com/watch?v=aLslNc14xfY&feature=sharea