Coworking company Spaces bets on changing work culture
Toronto has quickly become a global hub for shared work spaces, a new report says.
Canada’s largest city ranks third behind London and New York in the rate of new shared office openings, according to research by CoworkingResources. A new space opens every 13 days in Toronto, compared with every five days in London and 7.5 days in New York, the report says.
Vancouver was the only other Canadian city to crack CoworkingResources’ top 50 markets for new shared offices, coming in at number 31 with a new space opening every 40.7 days.
The report by CoworkingRescources tracked all coworking office openings from June 2018 to April 2019.
Coworking spaces have become increasingly popular in recent years as companies look to cut costs. CoworkingResources says rising real estate prices have pushed many small- to mid-sized businesses to explore shared spaces. In Toronto, demand for office space has outpaced supply, leading prices to surge to more than $35 per square-foot in the fourth quarter of 2018, according to CBRE. That’s a $2.50 increase year-over-year, making it the second priciest market in Canada, behind Vancouver.
The report adds that shared work spaces are at an all-time high and growing rapidly globally. The number of spaces has nearly tripled worldwide since 2015 and is expected to surpass 20,000 offices soon.
WeWork Cos., the industry’s largest player with more than 600 global locations, recently filed for an IPO. Analysts believe the listing could end up being the year’s largest behind Uber Technologies Inc.