Flexible workspace demand in Toronto rose 27 percent in 2022 over 2021, while workstation rates, occupancy, and supply were all also up, according to a new analysis from global workspace innovation firm The Instant Group.
Broken down by size, demand, which is based on inquiries for flexible workspace, was up 21 percent for 1-2 desks; 51 percent for 3-9 desks; 2 percent for 9-25 desks; and 47 percent for 25+ desks.
With increased demand has come higher rates. Flexible workstation rates in the city increased by eight percent year-over-year, to $551 USD per desk, per month, according to Instant. Private offices in coworking spaces averaged $698 USD per month in December, and were up seven percent year-over-year, according to data from CoworkIntel, which is part of The Instant Group.
Toronto also saw new flexible workspaces grow by six percent between 2021-2022. This growth was predominantly from new hybrid workspaces, which represent 61 percent of Toronto’s total supply.
The city’s flexible workspace occupancy is also up nine percent, according to CoworkIntel.
“The Toronto flexible workspace market is strong, and occupancy levels and rising rates demonstrate how much people want to be in this city,” said Michael Calistri, Director of Solutions Development, The Instant Group.
“From large banks to high-growth start-ups and tech-firms, occupiers are targeting sub two-year leases in Class-A buildings that provide high quality amenity spaces and access to public transit while making sure the terms are flexible,” added Calistri.
The included data is compiled via The Instant Group’s leading flexible workspace data platform, Instant Insight. Rate data is based on transacted rates, providing the most accurate view available within the industry, while demand data is based on demand coming through The Instant Group’s digital booking platform, Instant Offices. Percentage change is based on relative change.