JLL’s Future of Work Survey shows that while hybrid work is here to stay, the office remains critical to business operations
CHICAGO, Aug. 18, 2022 /PRNewswire/ — As businesses continue to evolve their workplaces to best meet the needs of their employees, JLL’s (NYSE: JLL) global Future of Work Survey finds that 72% of decision makers believe the office is critical to doing business. The research shows that over the next several years companies anticipate hybrid work to become the dominant model and will be looking across their real estate portfolios to re-think their office spaces, invest in new technology and prioritize sustainability.
“The next three years will prove to be an inflection point for real estate as businesses plot their future path and rethink the purpose of their portfolio,” said Dr. Marie Puybaraud, Global Head of Research, JLL Work Dynamics. “The changes accelerated by the pandemic represent an opportunity to pause, think about a long-term real estate strategy and how it aligns with future business priorities.”
Rethinking the office layout to accommodate hybrid working in the long-term
The mass adoption of hybrid work will have a lasting impact, with 77% of CRE leaders agreeing that offering remote or hybrid working will be critical to attracting and retaining talent in the future. As the trend toward dynamic working will continue, successfully operationalizing hybrid working will be the most important strategic priority for commercial real estate (CRE) executives over the next three years. This includes exploring flexible space options, with 43% of companies planning to accelerate investment in flexible space between now and 2025, and 51% saying they will lease flexible space through a third-party provider.
“As the office finds a new purpose post-pandemic as a destination for collaboration in employees’ hybrid workstyles, occupiers will need to continue increasing their investments in creative spaces,” said Cynthia Kantor, Chief Client Value & Growth Officer, JLL Work Dynamics. “Enhancing socialization, especially among a large, often geographically dispersed, workforce will be critical to future talent strategies, as the office accelerates its role as the innovation hub of the work ecosystem.”
Forty-five percent of organizations consider collaboration to be one of the primary purposes of office space and 73% have planned or are planning to make all office spaces open and collaborative, with no dedicated desk spaces. Many companies are also investing in spaces that support new workforce priorities around health and wellbeing.
Environmental and social aspirations will shape future portfolio transformation
As organizations face ever increasing pressure to deliver clear outcomes in the race to net zero and create social value through real estate, 77% say investing in quality space is a priority. With green strategies having a direct impact on real estate decisions, 74% say they are likely to pay a premium for green credentials; further, more than half of occupiers (56%) plan to do so by 2025.
However, stakeholder aspirations are not solely environmental, with nearly 8 out of 10 companies saying their employees expect their workplaces to have a positive impact on society. This means increasing investment in social considerations will be equally as important as funding environmental objectives. With diversity, inclusion and wellbeing now falling high on the corporate agenda, companies are underpinning these objectives with further investment and resources. Seventy-nine percent of respondents agree that their organizations are acting today to make the workplace more inclusive and diverse for all employees.
Investing in technology investments to boost workplace performance and productivity
Technology and data will be critical foundations in the future of successful real estate operations, but the gap that needs to be filled is immense. Only 13% of CRE executives say they are collecting data on an ongoing or real-time basis using advanced analytics. With the transformative power of technology to shape the dynamic workplace, companies are focused on ramping up investments in intelligent solutions to unlock new opportunities for boosting workforce performance and productivity.
The research finds a clear roadmap for CRE technology shaped around 15 anchor technologies, including workplace apps, remote working technology and virtual reality.1 As organizations plan future investments, CRE leaders are focused on key strategic areas like sustainability and employee wellbeing. By 2025, most companies (78%) plan to have incorporated over ten of the anchor technologies in their operations, and 40% plan to incorporate all 15.
Real estate needs are becoming more sophisticated and complex
To respond to the complex range of future of work challenges, CRE leaders will focus more on harnessing specialist skills to achieve their strategic objectives. Seventy-five percent of leading CRE functions anticipate greater reliance on external partners, with the two top areas for outsourcing growth expected to be health and wellbeing services (44%) and sustainability strategy (44%). Further, as technology becomes a crucial platform to boost performance levels on all fronts, 43% say they will need more outsourcing support for CRE technology solutions over the next three years.
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1 For a list of the 15 anchor technologies, refer to p. 30 in JLL Future of Work Survey (August 2022)
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
