Canada’s Office Real Estate Sector Faces Long-Term Impact from Remote Work Shift



Experts predict a slow recovery for Canada’s office real estate sector as remote and hybrid work arrangements continue to reshape the market.

Canada’s office real estate sector has been hit hard by the shift to remote work, and experts are predicting that it may never fully recover to its pre-COVID strength. While some companies are expected to return to in-office work, the prevalence of hybrid and remote working arrangements will continue to impact the office real estate market. Historically, the sector has experienced a strong rebound following a down phase, but this time around, the rebound is expected to be more gradual.


Canada’s Office Real Estate Sector Faces Long-Term Impact from Remote Work Shift

A November report from Morguard revealed a significant slowdown in investment sales activity in Canadian office real estate, with a 57.3% annual decline in investment sales in the first half of 2023. Additionally, the office vacancy rate in Canada rose to 18.2% in the third quarter of 2023, with downtown vacancies remaining steady and suburban vacancies on the rise.

Looking ahead to 2024, the market is expected to see a demand for Class A buildings in desirable locations, while older Class B and C buildings may experience weakened demand. Companies in need of office space will have a wide range of options, with Class A rents holding up due to a "flight to quality" in downtown areas across the country.

Analysts at Desjardins have flagged Canadian office real estate as an area of concern, noting signs of distress in lower-quality assets. They also anticipate another difficult year for office REITs, with a potential for weakness in the sector. However, companies with assets in good locations and well-maintained buildings may fare better in the year ahead.

The office real estate sector in Canada is facing significant challenges as a result of the shift to remote work, and the road to recovery may be long and uncertain.

Canada’s Office Real Estate Sector Faces Long-Term Impact from Remote Work Shift

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


New Zealand’s Housing Market Sees 4.4% Rise in Median National Rents

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Read more

Residential Property Prices in Ireland Surge, Exceeding 2007 Peak

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

Read more

U.S. Home Sales Decline Amid Record Prices and Rising Mortgage Rates

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

Read more

Canada’s Housing Market Weakens in May Amid Anticipation of Bank of Canada Interest Rate Cut

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

Read more

Spanish Island and Coast House Prices Return to 2008 Levels

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Read more

Discover Spain's Top Neighborhoods for Foreigners

Discover Spain's top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Discover Spain\'s top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Read more

27% of Canadian Renters Ready to Buy | Royal LePage Study

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Read more

Australia Real Estate Prices Set to Soar in Two-Speed Market

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Read more

European Property Market: A Shift in Price Trends

Discover the latest trends in the European real estate market and why the days of lower prices may soon be over. Stay ahead of the curve with insights on residential property values holding strong.

Discover the latest trends in the European real estate market and why the days of lower prices may soon be over. Stay ahead of the curve with insights on residential property values holding strong.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.