In keeping with popular lifestyle advice, new survey findings suggest office attendance hinges as much on the journey as the destination. Respondents to Colliers Canada’s recent quarterly poll of tenants’ preferences ranked parking as the most important amenity associated with office space, while decision-makers indicated they’d be more likely to renew office leases in areas with good transit service.
Input gleaned in the spring of 2024 — drawn from 427 companies occupying a range of downtown and suburban Class A and B space in various markets across Canada — shows occupiers have generally the same outlook on their space needs as they’ve expressed over the past three years. This time, 51 per cent report they’ll keep the space they’ve got; 26 per cent expect to shed space; and 7 per cent intend to expand their office footprint. Those splits and the sizable 17 per cent share of respondents who are unsure of their needs are largely consistent with survey results since the second quarter of 2021.
Currently, the office attendance rate averages three days per week across the survey base, but it varies more by industry sector. Tech workers and government employees spend the most time off-site, respectively averaging 2.3 days and 2.4 days in the office per week, while energy and cleantech workers are the steadiest office frequenters at an average of four days per week.
Interestingly, the industries with the highest and lowest attendance rates both fall well below the overall survey average of 230 square feet of allotted office space per worker. Tech offices have the tightest configuration with an average of 166 square feet per worker, but energy/cleantech is only slightly more spacious at 169 square feet per worker. Elsewhere, other types of professional services workers enjoy an average of 271 square feet, while legal services provides an average of 251 square feet per worker.
“In a hybrid work environment, the relationship between industry growth and real estate growth has weakened,” Colliers analysts observe. “Growth in the tech industry is likely to lead to a slower rate of growth for leased office space than historical averages across other industries, given their lower in-office mandate and allocation of square foot per employee.”
Among survey respondents who have the authority to make decisions about suite layouts, half voiced satisfaction with their current premises. Those favouring alterations were more apt to prioritize quiet space, through more private offices (13 per cent), improved soundproofing (12 per cent) or designated focus areas (10 per cent) versus 14 per cent seeking more collaborative space.
The data reveals that the 52 per cent of employers indicating they would like to see a pickup in office attendance were also more likely to be among those calling for more space to accommodate quiet, independent work. Meanwhile, about 32 per cent of employers were satisfied with the amount of time staff spent in the office.
Other correlations in respondents’ answers show that decision-makers with a good opinion of nearby transit service calibre and parking sufficiency are more likely to support lease renewal or, conversely, be less inclined to renew if one of those attributes is considered to be subpar. Tenants in downtown locations particularly valued possibilities for increased or subsidized parking and an easing of traffic congestion in the vicinity of the office, while suburban tenants prized better street-based connections to transit routes and shuttle services to and from major transit nodes.
Parking easily emerged as the key must-have on a list of 10 amenities associated with office space — earning the nod from 81 per cent of company decision-makers. Diverse dining options (59 per cent), 24/7 security (56 per cent) and retail outlets (53 per cent) ranked next in prominence, while electric vehicle charging stations (20 per cent), on-site childcare (16 per cent) and ESG certification (10 per cent) received less enthusiastic endorsement.
That said, survey respondents generally indicated support for a range of ESG issues, with none of the 10 listed options plotted at an average of less than 3 out of 5 on the priority scale. Health and well-being, diversity and inclusion and community investment and engagement were identified as the leading concerns, while issues with pressing implications for real estate operations and valuations — renewable energy and emissions reduction — garnered less attention.
