A Structural Shift Coming to the Commercial Real Estate Industry
1 min read
The effects of the pandemic are still playing a part in where companies are conducting their business. With a mix of companies either continuing remote work, following a hybrid work model or having everyone back in the office.
As Canadians continue to make their return to the office, so does a high demand for flexible office spaces suitable for hybrid work follows. In Toronto alone, the demand rose 27% in 2022 and hybrid workspaces now represent 61% of the supply.
The growth in three-to-nine desk spaces can be attributed to Startup companies, whereas 25 or more desk spaces are being demanded by larger companies not wanting to sign long-term leases.
Although this doesn’t fully solve the growing issue of more office spaces becoming available and being left vacant, some rethinking to repurpose the building will need to be conducted to find tenants.
References
Got, J. (2023, January 25). Flexible office spaces on the rise with Canadian companies still deciding how to work20. The Financial Post. Retrieved February 27, 2023, from https://financialpost.com/the-logic/flexible-office-spaces-on-the-rise-with-canadian-companies-still-deciding-how-to-work
McLean, S. (2023, February 22). Toronto's Flex Workspace Demand Rose rapidly in 2022. RENX. Retrieved February 27, 2023, from https://renx.ca/toronto-flexible-workspace-demand-rose-rapidly-2022
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