Quote:
Originally Posted by CoryHolmes
Even with this push to work from home?
I wonder how well a hotel will do when right across the street from the one in 3 Civic Plaza.
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I think the hotel will do well as the population continues to grow in Surrey. Airbnb's are usually prohibited by strata's so--in theory--this would drive short term customers to use hotels in the area.
The discussion around office space requires a more nuanced discussion.
If we look ahead 5-10 years, as AI systems/tools continue to improve they should drive productivity gains across the economy. Employees will be more productive which may mean that fewer total employees are required by companies. If this is the case, then office space will still be useful, but a smaller footprint will do the job. We are already seeing big co's reduce their footprints or attempt to do so. Sure employees may come in 2-3 times a week, but having all your employees in the office to work is a thing of the past.
On the other hand, AI systems/tools will also enable small companies (1-10 people) to carry out the work of medium/large companies. Will these small teams need office space? Perhaps. Or, they may choose to all WFH and leverage shared working spaces to meet up once a week or so. I do not believe the traditional framework where a company grows to a certain size then leases/buys office space will hold true in the second half of this decade. Small teams will have outsized impacts and they will work in a highly flexible/adaptable manner.
There are far too many variables at play in the office market to make any predictions. As someone with a role deciding where to allocate capital, I personally am steering clear of all office product until it becomes clear what the next "work" framework will look like.
In fact, rather than office space, I would love to see more lab space in Surrey (both wet and dry) as we begin an age of biotech.