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Fenestration Canada: Finding answers to new challenges

A new report has revealed that the rise in remote work could potentially lead to a staggering $800 billion loss in the value of office buildings in major cities across the globe by 2030. This post-pandemic trend is expected to cause a significant increase in office vacancy rates and a decrease in rental prices. 

According to a McKinsey Global Institute report, office attendance has settled at a consistent 30 percent decline from pre-COVID levels. Additionally, it reveals that only 37 percent of workers are physically present in the office on a daily basis. The pandemic-induced shift in working habits is adversely affecting the value of commercial real estate. This adds to the challenges faced by the market, which is already impacted by rising interest rates.

McKinsey analyzed nine “superstar” cities that have a significant share of global urban gross domestic product. These cities include Beijing, Houston, London, New York, Paris, Munich, San Francisco, Shanghai and Tokyo. Those cities could experience a staggering $800 billion USD (over $1 trillion CAD) in valuation losses, marking a significant 26 percent decline from 2019. According to McKinsey, there is a possibility of office space value plummeting by an alarming 42 percent in a worst-case scenario. 

Cellphone data indicates a significant decrease in population within Canadian cities during the workday, with current numbers reaching only half of pre-pandemic levels. According to a recent report by CBRE, Canada’s national office vacancy rate reached its highest point since 1994 in the second quarter. The downtown office vacancy rate in most major centers, excluding Calgary and Waterloo, has increased to 18.1 percent. Calgary and Halifax were the sole markets to experience a decrease in vacancy rates during the quarter, amidst rising interest rates, challenges in the technology industry and the looming risk of recession impacting office markets.

According to Avison Young, a leading commercial real estate firm, the vacancy rate in downtown Vancouver has increased to 12.3 percent in the second quarter of 2023. This reflects a rise from 11.1 percent in the previous quarter and 9.6 percent at the end of 2022.

Canada is on the brink of transformation. On one hand, we have a housing crisis. On the other hand, office towers are underutilized. With talks of Canada’s population reaching 100 million by 2100, our leaders are realizing the need for significant changes. One promising avenue is the conversion of commercial buildings into high density housing. Not only does repurposing commercial buildings present opportunities for increased housing options, but it also opens doors for updating the facades of the existing structures to meet energy codes. 

The possibility for employers to implement return-to-work mandates exists. With ongoing uncertainty, the megatrends point to densification. There is no better time to understand what is happening in the multifamily residential sector. WinDoor North America is Canada’s premier window and door industry event. WinDoor showcases the best of the industry, attracting manufacturers, retailers, suppliers, and other industry professionals from all over the world. The event offers an unparalleled educational experience, allowing attendees to build valuable relationships, access cutting-edge technology, and stay informed on industry trends. While WinDoor attracts both veteran and new fenestration participants, it has historically been a residential event focusing on the latest innovations in windows and door technologies, design trends, installation strategies, and energy efficiency codes. WinDoor 2023 will still largely be a residential event, however as FenCan’s Commercial Chapter continues to grow and gather momentum, there has been growing interest from commercial members to both attend, exhibit and sponsor at WinDoor this November 15 and 16 in Toronto. 

Attendees have the opportunity to learn from industry experts and top speakers. From workshops to informative seminars, WinDoor provides educational opportunities covering topics like energy efficiency, material selection, installation techniques and more. WinDoor 2023 will certainly include content of this kind of interest to the commercial architectural glazing sector. WinDoor also includes some great special events such as product launches and Hall of Fame celebrations. But special mention goes to the Main Event gala dinner promoted with great enthusiasm by Mike Bruno, Fenestration Canada past president and president of Everlast. The concept is simple: industry suppliers buy tables at the gala and invite their clients to attend a night of great food, beverages and entertainment after the show. The result is a terrific night of fun and relationship-building with show attendees and exhibitors hanging out together rather than scattering to the four corners of the city for dinner. Whether you are a glazing contractor, glass fabricator or other commercial glass supplier looking to stay up-to-date on trends in the window and door market, WinDoor is a must-attend event.

Don’t miss your chance to join the thousands of glass professionals who will be attending WinDoor 2023 at the Toronto Congress Centre. For more information, visit fenestrationcanada.ca/windoor or email our operations manager, Laine Atkins, at laine@fenestrationcanada.ca. If you are interested in presenting on a commercial glazing topic, please contact our technical director, Terry Adamson, at terry@fenestrationcanada.ca. We look forward to seeing you there! •