Increased Emphasis on Productivity, Sustainability and Efficiency in Coming Years
“Real estate merely houses the world around us and we need to be responsive to global changes,” says Gary Whitelaw, Bentall Kennedy’s CEO
Global uncertainty, what’s happening in Europe and the slowdown in Asia is affecting real estate demand in Canada but it’s still solid.
Businesses are still making decisions, which is very good, unlike in 2009. Most of the new development opportunities that we’re seeing are the result of a tremendous focus by our users on productivity, whether that’s the consolidation of multiple office locations into a new building or new premises for operational synergies and efficiencies or whether its retailers looking for new more flexible formats and sizes that accommodate a greater emphasis on online retailing.”
Productivity is driving every real estate sector in Canada.
Large stores are shrinking and moving to on-line retailing. Industrial clients are focussing on new modern forms of distribution. People are buying homes in downtown cores to avoid long commutes. Even the new trend towards ESG — environmental, social governance and sustainability —reflects concern for productivity.
“The most sustainable and efficient buildings have lower operating costs; they have higher tenant satisfaction, higher retention and therefore ultimately higher value,” says Whitelaw.
“Canada has done well on that global dimension but I think we need to make it a priority. We will see greater differentiation over the next decade between corporations that recognize that this has become a priority and those that become functionally obsolete because they haven’t.”
Note: This article was published on p 55 of Canada’s Leading Real Estate Forum, Toronto, Winter 2012.
