Mixed Uses and Office Conversions: Transforming Urban Cores for a Post-Pandemic Future

As the pandemic continues to impact traditional office settings, concerns arise regarding the revitalization of downtown cores. With the rise of remote work and hybrid models, many employees have yet to return in pre-pandemic proportions to large metropolitan offices. This transition has prompted innovative projects with the objective of transforming office-dense neighborhoods into vibrant and livable communities. Notable mixed-use buildings in Toronto and office-to-residential conversions in Calgary are the driving forces behind this transformation. This article examines the potential of mixed-use developments and office conversions as a means of reimagining urban cores and adapting to changing work dynamics.

The office vacancy difficulty

According to CBRE Canada, the national office vacancy rate reached an all-time high of 17.7% in the first quarter of 2023. Toronto’s office vacancy rate reached a 30-year high of 15.5%, while Vancouver, Montreal, and Ottawa also reported record-high vacancy rates. The protracted absence of downtown office employees has raised concerns about the recovery of these areas and the businesses dependent on daily foot traffic.

The “Well” Project in Toronto

The Toronto mixed-use retail, residential, and office complex known as “the Well” is emerging as an optimistic development in this challenging environment. In addition to residential and office structures, The Well includes outdoor retail and refreshment areas, public seating areas, and small parks. The project’s design reflects the post-pandemic demand for more adaptable and habitable spaces. Although the absence of the project’s largest office tenant, Shopify, could have an effect on businesses on the lower levels, the proprietors remain optimistic about attracting new office tenants and creating synergy with retail and residential components.

The Resistance of Mixed-Use Structures

Mixed-use structures, such as the Well, offer advantages beyond their pandemic response. They were created to accommodate evolving office trends, such as the demand for onsite amenities and the rise of coworking spaces. Mixed-use structures are more resistant to disruptions induced by macroeconomic shifts, demographic changes, and post-pandemic work trends such as flexible work arrangements. Their capacity to adapt to changing circumstances increases their long-term viability and appeal.

Reconsidering the Function of Office Spaces

Several office occupants in the Well have reviewed their office configurations as a result of the pandemic. BDP Quadrangle, for instance, has implemented a new design with fewer workstations, more breakout rooms for video conversations, transition spaces, desk-booking software, and technology-free zones. Employees are still willing to come into the office, particularly for social occasions, in response to the layout’s adaptability and flexibility. The hybrid work arrangement provides a competitive advantage in talent procurement, and the Well’s proximity to transportation centers such as Union Station provides suburban residents with added convenience.

Calgary Office-to-Residential Conversions

As a solution for underutilized office complexes, cities are exploring office-to-residential conversions as a result of the departure from metropolitan areas during the pandemic. Calgary, which had office vacancies prior to the pandemic as a result of the boom-and-bust hydrocarbon economy, has initiated a program for office conversion. Over a dozen applications have been submitted, and ten residential developments have been announced. This strategy seeks to transform derelict office spaces into thriving communities through the collaboration of businesses, building proprietors, the neighborhood, and the city.

The Potential for Conversions

Converting office buildings into residential spaces can be a complex process, but it offers the potential to increase the supply of affordable housing and revitalize urban cores. As severe vacancy rates cause a decline in the value of office buildings, cities may become more interested in alternative applications for these spaces.

Source: https://www.ctvnews.ca/business/mixed-uses-and-office-conversions-a-possible-future-for-urban-cores-1.6406235