CBRE Canada’s Post

Recent data from Statistics Canada has shed light on a concerning trend - the loss of corporate head offices and related jobs in Canada. Between 2012 and 2021, one in 25 Canadian head offices closed or merged with other companies, and since 2017, one in 10 head office jobs has disappeared. The average size of the remaining headquarters is also shrinking. An outdated tax system, inefficient regulatory processes, aimless low skilled immigration and internal trade barriers are hindering growth opportunities for businesses. #canadabusiness #corporateheadquarters #economicgrowth #innovation #businessenvironment #policychange

Momentum building in office market as sublet space and Downtown Class A vacancy decline for consecutive quarters Executive Summary -The Canadian office market reported 2.2 million sq. ft. of positive net absorption this quarter and was supported by pre-leased new supply deliveries. This is the first consecutive set of quarters with positive net absorption nationally since Q1 2020. -Overall vacancy held at 18.5% and has remained in a narrow 30 basis point (bps) range for the last five quarters. The number of markets with improving downtown conditions continues to grow with seven cities noting either stable or declining vacancy. -Downtown Class A product has seen two quarters of improvement with six of 10 markets posting improvements in Class A in Q2. Market bifurcation is expected to persist downtown where the delta between vacancy in Class A and B/C buildings has expanded to 850 bps. -Sublet space has declined for a fourth consecutive quarter having shaved 2.1 million sq. ft. off from the peak seen a year ago in Q2 2023. -3.0 million sq. ft. of new supply was delivered in Q2 and is the highest single quarter of new supply since 2017. Paired with limited starts, the construction pipeline continues to ease and is currently at its lowest level since 2005.

In this #TakeNotes, we discuss the global office sector’s uneven recovery post-pandemic. We deep dive into vacancy rates in different regions across the world, price for the office sector in a higher-for-longer" interest rate environment, and office #CMBS performance. See: https://lnkd.in/emE7D3bh

One of the reasons I enjoy flexible workspace solutions, is so that I never have to contribute to the downfall of a business. It equates to crushing someone's dream. Next to the wage bill; the business property and property associated costs is the next loaded line item. And by offering flexibility, one can come up with solutions to save businesses and support them, instead of crippling them. That's a true 'sustainability' flex! #supportingsmallbusinesses #flexibleworkspace #buildingcommunity #entrepreneurialjourney #coworking #businesssupportservices https://lnkd.in/d_qgV8Ck

Canadian office market update – Q3 2023 In Q3 2023, the national office availability rate flattened across Canada, with a slight increase of 0.1% from the previous quarter to 17.6%. 

LONDON DRAGS DOWN UK PRODUCTIVITY (www.ft.com/) London was the main drag to UK productivity growth between 2019 and 2022, a trend that pushed the efficiency gap between the capital and the rest of the country to its lowest level on record. Output per hour worked fell 2.7%in London between 2019 and 2022, in contrast with a 2.5% expansion across the UK over the four years, the Office for National Statistics said on Monday. #productivity #kentbusiness #kentinvictachamber https://lnkd.in/eSUK5-8Y

Over the past 9 years, Canada has bid farewell to 110 head offices. These powerhouses serve as vital "command and control centers," driving crucial decisions that shape our people, products, processes, and technologies. 🏢 The consequences are tangible—rippling across industries and communities. The loss of head offices curtails the downstream demand for high-value services, including law, accounting, engineering, consulting, finance, advertising, design, and human resources. 📊 Moreover, the impact extends to the workforce. Those in supporting sectors, along with direct head office employees, typically earn above-average wages. This income amplifies local economies as it circulates through nearby businesses, enhancing prosperity. 💼💰 A thriving head office sector doesn't just shape business dynamics—it fuels economic growth. By expanding the tax base, these centers contribute to public service funding and foster private-sector backing for education, health care, arts, and charitable initiatives. 🌱🏛️ Let's acknowledge the pivotal role of head offices in Canada's economic fabric. Now, more than ever, it's crucial for Canada to pay close attention to its business environment and steer clear of policies that could steer the country towards a low-wage economy. #CanadaEconomy #BusinessEnvironment #Prosperity #EconomicGrowth #PolicyMatters

Canada is losing corporate head offices and related jobs. Between 2012 and 2021, one in 25 Canadian head offices closed or merged with other companies, according to Statistics Canada data. Head office employment was still growing until 2017, but since then one in 10 head office jobs has disappeared. The average size of the remaining headquarters is also smaller. Notably, Canada’s head office footprint shrank faster after 2017, even as the federal government prioritized population growth through record levels of immigration. To lose one head office may be regarded as misfortune, but to lose 110 over nine years looks like carelessness. Canada should be paying more attention to its business environment and avoid adopting policies that would put the country on a path to a low-wage economy. https://lnkd.in/gMbZ-weW

Title: London's Impact on UK Productivity Hey everyone, I came across this interesting article about how London's drag on productivity is impacting the UK economy. The Financial Times recently published an insightful piece on this issue. It's a thought-provoking read that sheds light on the significant role London plays in shaping the productivity landscape across the UK. I believe it's crucial for all of us, especially those in the business and economic sectors, to understand and discuss these factors that affect our national productivity. Check it out and let's continue the conversation! Read the full article here: [insert link] #UKProductivity #LondonEconomy #EconomicInsights https://ift.tt/Ww4zLrD