HomeDiagramsDatabaseMapsForum About
     

Go Back   SkyscraperPage Forum > Regional Sections > Canada > Alberta & British Columbia > Vancouver > Business & the Economy


Reply

 
Thread Tools Display Modes
     
     
  #801  
Old Posted Jun 23, 2020, 10:53 PM
s211 s211 is offline
Registered User
 
Join Date: Oct 2008
Location: The People's Glorious Republic of ... Sigh...
Posts: 6,501
Quote:
Originally Posted by whatnext View Post
Not surprisingly Facebook floated that. Could they get any slimier?

Interesting article on how few are returning to Manhattan offices, even as they reopen:

...Since the lockdown began in March, financial firms have eschewed their option as essential businesses to bring more staff into their offices. Hopes that the city’s phased reopening would inspire a quick rebound of the bustling economy are running into the realities that big companies are going to be cautious. In a recent workplace survey of 60 companies conducted by the Partnership for New York City, employers said they only anticipate having 10% of employees back by Aug. 15. By year-end, they expect just 30%.

Many firms have been pleasantly surprised at employees’ ability to work remotely and some want to avoid putting a strain on public transit with workers who don’t have to be in the office. Companies are also taking time to retrofit spaces for social distancing, or upgrade air-conditioning systems and bathroom hand dryers. Employers including BlackRock Inc. plan to require mandatory training for staff returning to offices...

...The delay in returning workers to offices may augur a more permanent reckoning for New York office space. In a survey, the Partnership for New York City and Newmark Knight Frank found that roughly 37% of finance companies said they plan to decrease the space they occupy in the city by 20% or more. About one-fifth of professional services firms said the same. And more than a quarter of financial services companies plan to relocate jobs to the suburbs or other locations, the highest share of any industry...


https://www.bloomberg.com/news/artic...&sref=x4rjnz06
The two top tenant rep brokers for Manhattan were on a webinar earlier today and confirmed the 10% occupancy in the next short while and 25% by year-end if they're lucky. The major constraint isn't corporate policy but employee issues with mass transit.
__________________
If it seems I'm ignoring what you may have written in response to something I have written, it's very likely that you're on my Ignore List. Please do not take it personally.
Reply With Quote
     
     
  #802  
Old Posted Jun 23, 2020, 11:08 PM
Migrant_Coconut's Avatar
Migrant_Coconut Migrant_Coconut is offline
Registered User
 
Join Date: Oct 2015
Location: Kitsilano/Fairview
Posts: 4,174
Quote:
Originally Posted by scryer View Post
Question to those that still think that work from home models are distant fantasies: so if our governments are looking at the work at home model, what would stop private companies from doing the same?

Let's have a discussion .
Discussion had. AFAIK, hardly anybody's been naysaying "5-10% decentralization" guesses; everybody's doing it right now, and some of it might stick around long-term; maybe it jumps to 15-30%, maybe Casual Friday becomes WFH Friday.

It's a gigantic leap from those guesses to the 70-95% some posters are hoping for. Too many inefficiencies, for one thing.
Reply With Quote
     
     
  #803  
Old Posted Jun 25, 2020, 8:07 PM
whatnext whatnext is offline
Registered User
 
Join Date: Feb 2009
Location: Vancouver
Posts: 14,110
Some numbers from today:

Office rents in Toronto and Vancouver fell in the second quarter amid an increase in vacancies and subletting as the coronavirus put the brakes on a multi-year run of tightening supply, says commercial real estate services and investment firm CBRE.

“We are witnessing the beginning of a shift in momentum,” CBRE managing director Jon Ramscar said Wednesday after the firm reported a drop in office rents in downtown Toronto of $1.53 per square foot to $35.38 while the office vacancy rose to 2.7 per cent from a record low 2 per cent in the first three months of the year.

“It remains early in the trajectory of the virus to forecast its impact on vacancy and rental rates, with some markets still on lockdown, but it is clear tenants will likely have more opportunity to take advantage of longer decision-making timelines,” he said.

Toronto had 650,000 sq. ft. of vacant office space available for sublet, an 86 per cent increase from the first quarter, said the CBRE Quarterly Statistics Report on office and industrial real estate in major Canadian markets.

The downtown office vacancy rate in Vancouver rose to 3.3 per cent from 2.2 per cent a quarter earlier, with the amount of sublet space in downtown Vancouver up 200 per cent even as 219,000 sq. ft. of net new space was put on the market in the quarter. Downtown Class A office rents in Vancouver fell by $1.62 to $44.62 per sq. ft....


https://www.thestar.com/business/202...=&utm_content=
Reply With Quote
     
     
  #804  
Old Posted Jun 25, 2020, 9:41 PM
jollyburger jollyburger is offline
Registered User
 
Join Date: Dec 2015
Posts: 2,835
Sublease market spike

Quote:
A “shock wave” increase in sublease space has nearly doubled the vacancy rate in downtown Vancouver office towers, according to a new survey by CBRE.

The commercial agency reports that the number of subleases has increased from 37 at the end of 2019 to 90 this month, representing more than 500,000 square feet of space, as a direct result of the pandemic.

“The first real shock waves to hit the market were delivered via the downtown Vancouver sublease market. Uncertainty pushed some tenants to withhold from moving forward with leasing contracts, with some refusing to take occupancy. This has resulted in a proliferation of subleasing activity,” the June 15 report stated.

Downtown Vancouver has about 24 million square feet of office space and the subleases have pushed the vacancy rate to 4%, up from 2.2.% at the start of the year.

But CBRE notes that Vancouver still has one of the lowest office vacancy rates in North America. Only six of the available subleases pushed back onto the downtown market are bigger than 10,000 square feet and only five are greater than 20,000 square feet.

“With current low vacancy rates, coupled with the long lead time before the new office buildings under construction are complete, we expect a minimal negative short-term impact on office rental rates,” CBRE noted. “While some smaller users may benefit from potentially lower rental rates in short-term sublease space, the integrity of the overall market is expected to remain very stable.”

About 3.9 million square feet of new office space is under construction in Metro Vancouver, but two-thirds of that space is pre-leased, the study noted.

The agency’s most conservative estimate is that the Vancouver office vacancy rate may reach 7% by 2024, still below what it considers a “balanced” market.
https://biv.com/article/2020/06/subl...ikes-vancouver
Reply With Quote
     
     
  #805  
Old Posted Jun 25, 2020, 10:22 PM
rofina rofina is offline
Registered User
 
Join Date: Nov 2013
Posts: 1,682
Quote:
Originally Posted by jollyburger View Post
This is not a bad thing.

Our vacancies were actually very unhealthy. Tenants were frozen in place due to no temp space available, no expansion space. It was slowing deals more than anything.

Obviously we don't want Calgary levels, but if we return to 6% it would be a good thing for all.
Reply With Quote
     
     
  #806  
Old Posted Jun 25, 2020, 11:01 PM
Migrant_Coconut's Avatar
Migrant_Coconut Migrant_Coconut is offline
Registered User
 
Join Date: Oct 2015
Location: Kitsilano/Fairview
Posts: 4,174
Just three months ago, people were panicking about how the vacancy rate was 1.7% and how we wouldn't have office space and how we'd scare away businesses... now we're panicking because of the opposite?
Reply With Quote
     
     
  #807  
Old Posted Jun 26, 2020, 12:20 AM
jollyburger jollyburger is offline
Registered User
 
Join Date: Dec 2015
Posts: 2,835
Quote:
Originally Posted by Migrant_Coconut View Post
Just three months ago, people were panicking about how the vacancy rate was 1.7% and how we wouldn't have office space and how we'd scare away businesses... now we're panicking because of the opposite?
I mean what do you define as panicking?

Quote:
The agency’s most conservative estimate is that the Vancouver office vacancy rate may reach 7% by 2024, still below what it considers a “balanced” market.
Reply With Quote
     
     
End
 
 
Reply

Go Back   SkyscraperPage Forum > Regional Sections > Canada > Alberta & British Columbia > Vancouver > Business & the Economy
Forum Jump


Thread Tools
Display Modes

Forum Jump


All times are GMT. The time now is 7:37 AM.

     

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2020, vBulletin Solutions, Inc.