With the first quarter of 2021 now behind us, early Spring weather boosting moods and hope on the horizon, businesses are optimistic about the future. New restaurants are opening, new developments are being built, and our downtown skyline is growing for the first time in many years. But don’t worry, fancy new towers will never change our small-town friendly ways. While we may not be able to see people’s smiles these days, they haven’t gone anywhere.

For an inside look at the commercial real estate market, we caught up with Partner and Senior Sales Associate Josh Walchuk (JW) of ICR Commercial Real Estate.

CR: What have your clients most commonly been asking for since the pandemic began?

JW: Initially we saw a lot of requests for rent deferrals, then the government programs were introduced and now we’re seeing less reliance on financial assistance in exchange for small business’s ability to re-invent and restructure the ways they do business.

CR: What trends are you seeing, and do you expect to as we move through 2021?

 JW: Restaurants and shops refined their on-line ordering systems either by aligning with delivery services or making it a true family affair and doing the deliveries themselves. Retailers have gotten savvy by offering virtual shops, refining their social platforms and being flexible with return policies.

As far as office space goes, we expect 25-50% of employees to continue to work from home. A lot of employees are enjoying the time saved traveling back and forth. Many feel more focused and empowered by being granted the freedom to navigate their day.

With respect to everyone else, wanting or being asked to return to the workplace, we expect employers to look at ‘hoteling’. Hoteling is shifting from the traditional dedicated offices we’re all familiar with to reserving your space for the day you plan to be in the office. These designs are easier to maintain, to clean, and serve to offer flexibility to employees.

It’s also the ideal solution to maximize your square footage and lower costs, while improving productivity. But to do it successfully, businesses really need to look at their space, current workflow and create attractive, efficient workspaces.

CR: Who is and who isn’t doing projects?

JW: Industrial leasing is steady, but somewhat stabilized since the economy slowed. There isn’t a shortage and there isn’t an abundance of space. Some owners are hedging their bets and taking on new builds, but they are the few.

A lot of buyers are looking at long term stable investment properties so that’s where we see dollars being spent.

CR: What is the biggest challenge for you?

JW: For our office landlords, the challenge is how to lease space with a limited pool of tenants and we’re all chasing that same pool. In addition to that, we’re now competing with River Landing so we’ve really been encouraging landlords to make the upgrades necessary to make these older spaces attractive and stand apart.

The term for this in real estate is ‘Flight to Quality’. With the lower prices per square foot – property owners should really be taking advantage of this time, while they have it.

What Landlords and Business Owners Need To Know:

1. Optimization.

Start by decreasing their footprint where appropriate and invest money into making the space really functional and safe for everyone.

2. Do it Now.

The longer everyone waits, the more expensive and more difficult it will be to get the upgrades done.

3. Be Aware.

Projects in general are taking longer to complete now. Supplies and materials need longer lead times to arrive. Contractors have to work in smaller teams to allow for physical distancing.

4. Hire an Expert.

Before you do anything, engage professionals to design the space development to best accommodate your needs now and in the future.

CR: So tell us, where do you see opportunity?

JW: Definitely, the tech sector. It’s an industry not dependent on cycles, or commodity prices, they grow regardless at exponential rates. We’ve seen it with Vendasta and Skip the Dishes here. As long as our post-secondary schools continue to focus funding on the computer science programs we’ll keep seeing that same type of success. So that’s something to get excited about. Who will be our next home-town success story?

(end of interview.)

ATTENTION BUSINESS OWNERS!

WAIT! Before you get too excited about reinventing your office space, we need to address one final element.

What Does Your Office Space Say About Your Brand?

First impressions matter. Have you ever walked into an office with certain expectations of professionalism only to quickly find yourself uncomfortably questioning if it’s the right fit for you and your needs?

While we’ve all been taught not to judge a book by its cover, unfortunately our brains are hard-wired to make judgements in a nano-second about people and about environments. Those environments often reflect on the people in them. Worse yet, once those views are formed, it can be very difficult to change them. We’re all familiar with the saying, “you don’t get a second chance to make a first impression”.

Ask Yourself:

1.     What impression does your office give with your customers about who you are as a business?

2.     Is there a clear and consistent message of what your organization values and represents?

3.     Do the colors and materials in the space spark a positive mood or emotion?

4.     Do you feel joy or excitement to start your day in your own space?

5.     Do your employees feel comfortable, calm and inspired?

If your answers were mostly NO or you don’t actually know, don’t worry. That just means there is opportunity for you!

So now what?

Let’s Talk Branding 101

Your brand is more than your logo, more than promotional materials and more than your marketing. It’s true that your website, advertising, social media and even your business cards matter. But BRAND is the entire experience your customers have from interacting with you. It is how you are seen, heard and felt.

Now that we’ve cleared that up, let’s look at what you need to consider in branding your physical office space.

1.     Every Space Tells a Story. Your designer plays an essential role in developing this story. Integrating your brand into the interior environment should be addressed at the early stages of design through information gathering and discovery with your design team. The goal is to align your company’s touch points with a matching quality of space.

2.      Develop a Clear Framework. Messaging, graphics and brand expression should be developed and applied in a consistent manner throughout the space. When done correctly, it should be felt the same way by your clients, employees and potential new hires. It will become one of your most powerful ways of communicating your deeply held philosophies and company values.

 3.     The Balance between Permanence and Flexibility. If you’re going to invest all this time and effort into your office space you want it to last for many years. So you’ll need differentiate the unchangeable pieces that reflect your core principles, from the adaptable components, such as graphic elements, furniture, décor or wall finishes. Striking this balance will ensure that your brand remains fresh and relevant throughout its life.

REMEMBER:

A poor first impression can close the door for good. Is that a risk you are willing to take?