Employees Are Back In The Office - And It's Clear Why

/EIN News/ -- TORONTO, March 06, 2025 (GLOBE NEWSWIRE) -- Crown Property Management’s ("Crown") latest annual tenant experience survey provides insights from 6,000 commercial building occupants and 350 leasing decision-makers across our 10 million square foot portfolio in the Greater Toronto and Greater Ottawa areas (GTA and GOA). The survey explores demand and utilization trends across our portfolio.

Three Key Findings:

1. The office is in, and hybrid is waning: A significant shift away from hybrid work with an increase in full-time office attendance.
2. Amenities or Bust: Tenant satisfaction correlates strongly with the utilization of office amenities.
3. Growth Prospects: Most tenants expect growth suggesting stability and confidence in space needs.
   

Increased Return to Office

Hybrid working models are tapering off, with 80% of tenants reporting regular office attendance on peak days, and 27% present five days a week (refer to Figure 1). CBRE’s Market outlook identifies Toronto as a leader in regular office attendance, with a 70% physical occupancy rate, surpassing other major cities.

The Importance of Amenities for Tenant Satisfaction

Crown’s survey highlights the correlation between amenities and tenant satisfaction. “Commute worthy” buildings with rich amenities not only attract tenants but significantly enhance the in-office experience of their employees, with 79% expressing satisfaction* with on-site offerings. A key aspect of Crown’s asset strategy involves enhancing fitness and conference facilities and common areas. Coincident with a focus on such upgrades across the portfolio, Crown experienced a 15-point increase in its net promoter score (NPS) this past year. The NPS is an indicator of tenant loyalty and the likelihood they will recommend leasing within a Crown building.

"The results of our 2024 survey not only reflect Crown's commitment to excellence in property management but also guide our strategies moving forward. By focusing on amenities, tenant engagement, and building communities, we are providing tenants with the tools they need to thrive."

— Anthony Kingsley, EVP Operations

Crown’s asset strategy includes a focus on energy retrofits and well-timed retrofits that will drive improvements in GHG emissions, energy efficiency, and water usage in the future. Regardless of where on the political spectrum one lies on the topic of ESG, such considerations are part of the amenity package that signals a building is managed efficiently and to a high standard. To this point, 72% of leasing decision-makers in Crown’s tenant base prefer an office building with a decarbonization strategy in place, with 22% willing to pay a rental premium for sustainability initiatives.

Expansion and Growth Among Tenants

82% of decision makers surveyed stated their business is stable or growing*. This is not just a marker of tenant success, but reflective of a broader sense of stability and readiness to make long-term space decisions.

“As tenants gain greater confidence in their workplace needs and move past the shorter-term renewal trend we saw during COVID, they are considering how their workplace aligns with their own long term business objectives. Investors and tenants alike recognize the value of well-managed assets where building management considers energy efficiency and future-readiness.

It is encouraging to see this strategic alignment taking place across the office building community, reinforcing the importance of thoughtful and well-timed capital investments.”-Emily Hanna, Managing Partner, Investments

Conclusion: Strategic Implications for Future Property Management

Crown’s 2024 tenant survey underscores the importance of creating commute-worthy spaces that align with the evolving work habits and preferences of today’s workforce. Looking ahead, we are committed to anticipating and exceeding the expectations of tomorrow's tenants.   Through proactive engagement and strategic enhancements, Crown will continue to redefine the standard for workplaces, ensuring our spaces are more than square footage - they are places where businesses thrive.

*For detailed graphs correlating with the statistics mentioned throughout this release, please visit Crown's 2025 Tenant Survey Results.

For further information, please contact: 

Monica DiZio

Director, Marketing and Innovation, Partner

mdizio@crp-cpmi.com