OFFICE MARKET REPORT | 1st QUARTER 2021
Trends
Working from home is losing its shine
The rollout of efficient vaccines showing some promise, businesses could be more optimistic towards the return of their employees to the workplace, thus slowing down the flooding of office space to the market. Meanwhile, many businesses are delaying their decisions to see which trends will arise from now until mass vaccination is achieved, especially those pertaining to back-to-office safety practices.
Meanwhile, studies have shown that, after more than a year of forced remote work, employees in general are less interested in working from home full time. This reinforces the idea that a hybrid model of in-office work and remote work will probably be the norm in the coming years, which reinforces the necessity of maintaining office spaces.
According to the second edition of “The State of Downtown” (socioeconomic activity report for the Montréal downtown core published by the Urban Development Institute of Québec in February), a survey completed in the fourth quarter of 2020 stated that 67% of respondents wished to keep working from home most of the time after the pandemic, a decrease of 9 basis points compared to the second quarter of 2020. Almost half of employees interviewed felt it is harder to establish and maintain relationships with colleagues, while a third of them stated that remote work impairs problem resolution.
Furthermore, according to a U.S. survey carried out by PwC at the beginning of 2021 on the impact of remote work, the majority of employers were conscious of the importance of collaborating with colleagues and building relationships in a physical work environment such as the office. However, it was also clear in the survey that the role of the office was set to evolve to offer greater flexibility and more benefits to workers.
Nonetheless, a survey done by Abacus Data in March 2021 for the Canadian Chamber of Commerce showed that almost half (45%) of 2,000 Canadians believe their work environment will not return to normal until 2022.
Photo: Annie Spratt, Unsplash
Relaunching the economy
The acceleration of the vaccination rollout, the stimulus package from governments to revitalize the economy, the high savings rate of Canadians during the pandemic and the low interest rates are all factors that should kickstart the recovery of the economy in the coming months.
That said, several organizations are working on the recovery by developing initiatives that aim to support and guide businesses through this new reality. One of the main players in this recovery is the Chamber of Commerce of Metropolitan Montréal (CCMM). The CCMM launched the Relaunch MTL program, which aims to mobilize all players within the Greater Montréal Area's business ecosystem to participate in revitalizing the major strategic industries of the city. The objective of this initiative is to achieve a thorough understanding of the issues faced by these industries, find solutions and guide decision-making within businesses and levels of government, to propel the revitalization of the Montréal economy.
The City of Montréal also set up an advisory committee to reflect on the recovery and economic relaunch of Montréal and to coordinate efforts through various social and economic players within the city. The mandate of this committee is to gather economic data pertaining to the recovery of Montréal, to recommend “ready to start” recovery projects and to guide recovery initiatives that will be undertaken by various government levels to ensure they answer to the needs and requirements of the community.
Simultaneously, this committee will be tasked with discussing various economic aspects to be taken into account in the new reality, and addressing topics such as the resilience of supply chains, the circular economy within the territory, the ability to inject private capital within the framework of the recovery, as well as other avenues deemed relevant. The committee should also identify economic sectors or key players in Montréal that can make concrete contributions to the issues highlighted by the crisis and find solutions to preserve Montréal’s international reach in terms of culture, tourism, economic exchanges, and international organizations.
Investissement Québec is another organization that has provided front-line support, playing an active role in financing, and granting loans to organizations over the past months and bringing creative support to numerous projects and businesses in their development as well as their management of the pandemic.
Thanks to these programs, Montréal businesses will be well equipped to continue their reflection on the next steps in resuming their activities in the new normal, while the ongoing rollout of the vaccine and the resilient economic factors, although impacted by the pandemic, will ensure a strong economic recovery in the long run. Moreover, according to a report from Montréal International, the Greater Montréal Area has continued to attract many investors, international organizations, entrepreneurs, as well as international students and workers in 2020, despite the pandemic and the closing of borders. These remarkable results show that the city boasts a vast amount of assets that will help it recover from the pandemic, both at a local and international level.
With these programs, Montréal businesses will be well equipped to continue their reflection on the next steps in resuming their activities in the new normal, while the ongoing rollout of the vaccine and the resilient economic factors, although impacted by the pandemic, will ensure a strong economic recovery in the long run.
