I thought I'd chime in here as I've been researching and obsessed over this topic since the beginning of covid. I have been reading every article possible, analyzing job postings, & speaking with many people in the industry. Here are my major findings:
From job postings within Toronto, what I gathered is that 8 out of 10 postings do not reference working from home and include the location as Toronto, with the location of their office. I'd say 1/10 mention a hybrid approach, as in we have an office in Toronto, but you can choose the work style that works best for you, or they state that employees are required to come in 2-4x per week. The other 1/10 is a position that would have likely been in an office in Toronto, that companies are now opening up to any location (typically within Canada, but some worldwide).
The other most relevant information I found on the topic comes from a McKinsey report where they surveyed 800 executives from across the world (the people who will actually be making these decisions). Here is the full report:
https://www.mckinsey.com/featured-i...tives-envision-for-the-postpandemic-workforce
And an excerpt from that report: "Across all sectors, 15 percent of executives surveyed amid the pandemic said at least one-tenth of their employees could work remotely two or more days a week going forward, almost double the 8 percent of respondents who expressed that intention before COVID-19"
Think about that. At first when you hear double the amount of people WFH it sounds like a lot. But read it again. This is coming directly from the CEOs. Only 15% of executives said that more than 10% of their staff will work from home more than two days a week after the pandemic is over. That means 85% of executives will go exactly back to how things were before. And even of the 15% that are remote friendly, the majority of their staff will still be in the office on most days.
Finally, I've attached a couple screenshots. One was shared by a commercial RE broker in Manhattan (the place with the some of the highest commercial rents in the world). Companies like Facebook, Apple, Refinitiv , TikTok have all purchased more commercial RE in Manhattan during the pandemic. I know that Google and Amazon have as well (both in Toronto and NYC). Here is a link to Google's new proposal commercial RE development in King East in Toronto:
https://urbantoronto.ca/news/2020/10/googles-next-downtown-toronto-tower-rising-65-king-east
Another CBRE report, the other screenshot, shows that 40% of tech companies are actually looking to expand their commercial RE footprint. 53% are keeping the same space, and only 7% are looking for less space. And these tech companies are the ones most capable of adopting a WFH policy.
So what is my conclusion? WFH is here to stay, but it won't be anything like what most people are imagining. And it will be very similar to pre-pandemic. All the major banks, insurance companies and consulting firms already had some degree of hotelling, and were planning their office space under the assumption that the average person would be in the office 3.5-4 days per week.
Smaller companies are experimenting with lowering costs and having a more distributed workforce, but these will be for less collaborative positions (customer support, admin, etc). In other words, companies are OUTSOURCING more positions. And guess what? These people will likely be working out of places like Mumbai and Manila, you guessed it, in OFFICES.
The fact alone that Facebook, Google, Amazon, Micrsoft and Apple have expanded their commercial real estate during the pandemic should tell you something. The reality is that the history of companies adapting a full WFH policy has been full of failure :
https://www.nytimes.com/2020/06/29/technology/working-from-home-failure.html
IBM,
Aetna, Best Buy,
Bank of America, Yahoo,
AT&T and Reddit all had WFH policies in the past that failed and they sent people back to offices. The main conclusion was that the impact on the company culture was too great to outweigh the cost savings, and it gave employees too much freedom. Yes, no one wants to say it, but employers want to see you in your chair working. Executives said that productivity suffered big time, especially on Mondays and Fridays, where people slept in and every weekend became a 3-day weekend. Telecommuting has been around since the 1970s, with IBM being one of the highest profile experiments. As far back as 1989 people were predicting the death of the office. IBM eventually sent almost all their staff back to offices.
TLDR:
WFH means more outsourced white collar jobs. It does not mean you get to avoid your commute every day. Office space will be just as relevant post-pandemic. People and companies who go into the office more regularly will have a competitive advantage (see Facebook, Amazon, Google, & Apple, to name a few, all expanding their commercial RE footprint). Broadly speaking, WFH experiments in the past have all failed. Zoom will not change that. About twice as many people worldwide will work from home in some capacity post-pandemic, but that number is a lot smaller than you think. 90%+ of people currently WFH will spend the majority of their work days in the office in two years time. Book it.