It has been a while since my last blog post, blame my current undertaking of an MBA 😊. Ironically, however, it is this MBA that has provided me talking to a variety of individuals that helps my insights, so this is good. Taking this MBA is the best decision, I have ever made. Anyway, I am deflecting.

Today’s topic is a topic that I have found is one that everyone is talking about in the real estate world. As Covid is currently ongoing, most of us are working from home. The question that everyone in the real estate world is thinking –  Is this permanent, will individuals want to continue work from home, and is the need for space in downtown financial district perhaps going to continue? I have talked to many individuals regarding this and are some of the insights that I have come up with. This list is very quick, this is no means exhaustive.

From the commercial development side in Edmonton, where office vacancies are 18-22% I can see the concern. The question is though is this permanent, or simply just an obvious causation of the current pandemic.

Why some individuals believe this is temporary and we will return to an office environment:

• Water Cooler talk – While some individuals might just see this as a gossip time 😉. Most best ideas come from bumping into others when getting coffee. Human interaction, bumping into each other at the office is something that inspires ideas and innovation. Spontaneous collaboration as I like to call it is the best way to invent. With Microsoft teams, you have to setup meetings, check you calendar etc.
• Cache: While this might not matter to some it matters. There is something cache so to speak about having an office. It gives you credibility in the traditional sense. I can afford an office; I have the fighting power. It gives clients a sense of comfort, that wow, this office is great and big, they can take on my portfolio of funds. This may be a misconception to some like I said, however, it gives you a bit of comfort.
• Productivity: You need boundaries you need the separation. Studies have shown that going into the office and coming back provides you with that separation. Work is work and home is home. We are already checking our emails and working when we get at home, I am also guilty of this too and planning the next day in our heads. As much as perhaps studies have shown we can separate at home, is it ideal? We need these boundaries to function.

Why some individuals believe this is permanent:

• Costs: Costs is the most obvious one. Having the ability to downsize that is great – Commercial space is expensive and the overhead costs are they necessary. Do I need to have office space? I can save on time for my employees as well due to commute – more productivity.
• Family Time: It is not my place to comment, given my single status, however I have talked to a few people with families. Those with families like the idea of having the closeness with their families, to talk to their kids perhaps before 7PM. If you are getting your work done and on time – What does it matter when I do my work, is the argument, I have heard.
• Work Anywhere: The obvious but good beneficial is the work from anywhere. I can work for a United Kingdom Company for example from Canada. Covid has begin to normalize working and interacting with people more often globally and interaction with those abroad is an unofficial job norm now.

I have shown you these points to give you a rough idea of what the insights I have gotten. There are much more deeper insights that I can provide; think of these as a starting point. I will let you formulate your own opinions.  I do have an opinion – however I like to keep these blogs highlights only. Feel free to reach out and I am happy to share more or additional thoughts.