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‘Once-in-a-generation’ shift to remote working leads to record vacancy in Toronto offices

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2 years ago

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The number of vacant office spaces in downtown Toronto has reached a level unseen in 28 years as the sector goes through a “once-in-a-generation evolution,” according to a new report.

CBRE Limited, the commercial real estate services giant, released the data in their Q1 2023 Canada Office Figures report, which said the vacancy rate in the city’s core rose to 15.3 per cent in the first quarter – the highest it’s been since 1995.

The numbers are being driven by what CBRE describes as companies continuing to adjust to hybrid work models and office landlords “striving to maintain their appeal.”

“The result is a sector in flux and greater separation forming between uninspired older offices and well-amenitized modern spaces,” a news release issued Tuesday read.

Despite the vacancies, the data also showed office space has continued to reopen in the downtown core since 2022 with a strong demand in the legal, finance, insurance, and real estate sectors because of their traditional working arrangements and gradual return-to-office directives.

However, CBRE said it has observed a “muted activity” across most other industries and that downsizing, specifically in the tech sector, has contributed to a high rate of vacancy.

“Demand for cheap commodity space has evaporated and been replaced with the want for spaces that act as conductors for business productivity and development,” chairman of CBRE Canada Paul Morassutti said following the release of the report.

CBRE’s downtown and suburban office vacancy rates are seen here. (CBRE)“There is a greater focus on higher-quality and highly amenitized office assets as companies learn that remote and in real life are not binary choices, but in fact each reinforces the other.”

According to the Strategic Regional Research Alliance, which tracks office occupancy data across public, private and institutional sectors in Toronto, the occupancy rate in the city is hovering just above 40 per cent (comapred to pre-COVID-19) since the beginning of the year as companies “work their way through the implementation of the hybrid model.”

In their most recent report, the group, which sources its data from the City of Toronto and its various BIAs, claimed CEOs are reporting that remote work is “particularly harmful for youth career pathing largely because senior experienced employees are staying home at an alarming rate reducing opportunities for in-person mentoring and collaboration.”The latest office occupancy data from the Strategic Regional Research Alliance is seen in this image. (SRRA)
Outside of Toronto, Montreal and Ottawa both recorded their highest-ever office vacancy rates at 16.5 and 13.2 per cent, respectively. Vancouver saw their vacancy rate rise to 10.4 per cent, a level unseen since 2004.

At a national level, Canada’s office vacancy rate is at an all-time high of 17.7 per cent.

In fact, the CBRE says 10 of the last 12 quarters produced negative net absorption, which means more office space was on the market than was leased by businesses.

Signage displaying office spaces for lease hangs from a building in Toronto’s Liberty Village on Tuesday, March 9, 2021. THE CANADIAN PRESS/Tijana Martin

‘THERE’S AN OPPORTUNITY HERE’: ONTARIO REAL ESTATE ASSOCIATION HEAD

On Tuesday, Tim Hudak, CEO of the Ontario Real Estate Association, told CP24 the vacancies could actually boost Toronto’s low housing supply.

“There is an opportunity here. While some business won’t have their staff in the office every day of the week, there’s opportunity for residences,” Hudak said. “I think the province of Ontario, working with the city, should look at where we can convert some of that commercial space into affordable homes for young Canadians or mixed-use residential and commercial.”

Hudak pointed to places like Calgary, where cities have teamed up with the province and businesses, to maximize vacant office space and provide more housing options to those looking to buy their first property.

“Hopefully, this mayor’s race coming up in Toronto to lay some ideas on the table to create residences that can help first-time home buyers get into the market,” he said.

 

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What Difference Will You Make to an Employer?

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10 hours ago

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October 21, 2024

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Ex-Employer (Job)

It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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4 days ago

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October 17, 2024

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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4 days ago

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October 17, 2024

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