Toronto is a Coworking City
While coworking is a worldwide phenomenon, some places are much bigger adopters than others. In recent years, Toronto has established itself as a coworking city. And now, the proof is in- according to a new study, Toronto is now the 3rd fastest growing city for coworking.
How Toronto Coworking Stacks Up Globally
Toronto is a fast adopter and is often a testing ground for new business practices and ideas. The city was quick to embrace coworking, even before it became an international trend. This was spurred on by the office space needs of Toronto’s thriving tech sector.
Now that coworking is a proven format that drives success and agility, it’s growth is expanding even faster. Today, Toronto’s coworking growth is outranked only by New York and London.
The growth rate is not steady across Canada. Vancouver is the only other Canadian city that even registers in the top 50 coworking markets. The popularity of shared office space centers largely around tech and business hubs with expensive or limited real estate.
Why Is Coworking So Big In Toronto?
While Toronto has the 3rd fastest coworking growth rate, Canada ranks 7th globally. So what is it that sets the city apart in this space?
Here are a few of the key factors that make coworking so attractive in the GTA:
In Toronto, coworking isn’t just good practice — it’s becoming a necessity. As one of the biggest business cities in North America, companies are looking for space. As a result, the demand for office space is outpacing availability.
This disparity between availability and demand is even greater in high-demand areas. Office space in Toronto’s Financial District, for instance, is notoriously difficult to obtain.
Currently, at 2.6%, Toronto has the lowest vacancy rate in North America. Despite a skyline filled with cranes, the city cannot build fast enough to match the demand with traditional offices.
With the low availability of office space, all the power is in the hands of building owners. They are able to charge a fortune on rents and can demand longterm lease agreements. On top of all this, the year-over-year costs continue to grow. As a result, rent becomes a significant factor in profitability.
With that in mind, it just makes sense to find a lower-cost solution. Shared office space means shared costs. This allows companies to find affordable office space in the most desirable locations.
Through coworking, businesses can get higher-quality offices in better locations at lower costs.
Need for Agility
Modern businesses need to be agile. But Toronto office rentals usually have 5 to 10-year leases. That doesn’t leave a lot of room for mobility. Even large companies may not have a clear business plan for that far in the future.
This makes these contracts impractical for companies that may have rapid growth or fluctuations. As a result, even enterprise companies are moving into Toronto coworking spaces.
Coworking offices offer short term or even month-to-month rental options. That allows companies to quickly increase or decrease their office space. In short, you can scale your space in real-time.
Toronto is a Major Test Market
Toronto is a great place to do business and an ideal place to test the waters. With the advantages of bringing a business to Toronto, if you can’t make it work here you’ll likely struggle in US markets.
Companies frequently take advantage of Toronto’s talent pool and tax advantages to test the market for new business ideas.
The agility of coworking makes it the ideal solution for these tests. The short-term rentals allow you to move quickly with minimal risk. And you can expand quickly, so you never miss out on an important opportunity.
Join a City of Fast-Adopters
For those who want to grow their business, it’s all about finding the right environment. Toronto is full of industry leaders, movers and shakers. They’re quick to jump on new ideas and double down on the practices that work. It’s a mindset that’s attractive to entrepreneurs and enterprises alike.
Book a tour today and discover how Toronto coworking fits your business.