Hybrid work gives city leaders new opportunities

The hybrid work revolution is radically reshaping our cities.

Canadians work more days remotely than citizens of any other country, at an average of 1.7 work days per week — more than half a day over the international average, a survey found this past summer. And over half of those working remotely at least some days would look for another job if forced to come into the office full-time. According to the Kastle Systems barometer, despite the post-Labour Day push, office attendance in North American cities is hovering at around 50 per cent over the last year, below pre-pandemic norms.

One of the most tangible shifts is the ongoing exodus from urban cores. For instance, Toronto saw nearly 100,000 people leave the area, with many moving to cheaper cost-of-living areas such as Alberta. That’s part of a bigger trend across North America: a McKinsey report indicates that between mid-2020 and mid-2022, New York City lost five per cent of its population, while San Francisco lost six per cent. The implications are significant: higher urban vacancy rates and less foot traffic, which remains down by 1020 per cent.

The forecasted downturn in demand for office and retail spaces poses significant challenges for cities, especially metropolitan powerhouses. This calls for an urgent recalibration of urban planning and development strategies.

Lowered rents due to an oversupply of commercial space present a unique opportunity for municipalities. This is a crucial period for city leaders to reassess zoning laws to attract a diverse range of businesses, even to previously unaffordable prime locations.

Real-estate markets are highly localized, characterized by microvariations influenced by a wide array of factors. For instance, neighbourhoods dominated by knowledge-economy firms may see slower rebounds in property demand. Thus, it’s essential for municipalities to adopt a geostrategic approach. This could mean creating zoning policies that facilitate smaller central offices in cities, complemented by satellite workspaces in suburban and rural areas.

The new paradigm of work, freed from the confines of geographic location, complicates the matter of talent retention for cities. While companies can tap into a broader talent pool, so can cities. It’s more feasible now than ever for cities to attract highly skilled workers who are no longer tethered to specific job locations. Innovative public policies focused on offering highquality living experiences — through green spaces, effective public transit and cultural hubs — can help attract and retain talent.

City leaders must recognize that mixed-use neighbourhoods are not just a real-estate fad, but a strategic asset for urban resilience. Such neighbourhoods bring together residential, commercial and recreational spaces, thus offering a hedge against economic downturns. Moreover, they become appealing environments that can attract both businesses and skilled workers, adding vibrancy and energy to the city.

The new dynamics of work and leisure demand a radical rethink of existing infrastructural norms. Collaboration among city planners, architects and technology experts is essential for reshaping spaces to meet future needs. While this will require a significant allocation of resources, consider it a capital investment in future-proofing the city’s architecture and infrastructure.

Emerging smart building technologies offer compelling opportunities for efficiency and governance. These technologies can optimize energy consumption, enhance public safety and improve quality of life. The real strategic power, however, lies in the actionable data these technologies can provide, allowing for data-driven decision-making in city management.

Given the decrease in foot traffic, city leaders must innovate in their approach to retail spaces. This could mean easing restrictions to allow for multi-use spaces that combine retail, commercial and residential uses. For example, underutilized retail areas could be repurposed as co-working hubs or for temporary pop-up events, thus breathing new life into vacant spaces.

We are at an inflection point where cities are transforming into multi-functional, hybrid spaces. This involves integrating diverse functionalities — work, live, play — into a unified, adaptive ecosystem. It’s not just about creating a functional city but sculpting a resilient, vibrant urban environment that can flexibly adapt to future uncertainties.

By taking a nuanced, multi-dimensional approach that includes advanced technologies and smart planning, city leaders cannot only adapt but thrive in this new urban landscape.