Co-Working Spaces and Their Benefits

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( — October 14, 2019) — When co-working was just exploding onto the market, the office shared spaces were being primarily used by startups, freelancers and by students who were looking to work in their own office spaces. This was a great way for them to move in and to start growing in whatever business they were doing. However with the increase in rentals and with the need to be flexible in their business approach, many large companies are making the move to shared working spaces at a really rapid rate, after having seen the many benefits that co-working spaces provide as well as the cost savings that come as a result of this – it is a very popular myth that has been busted, which states that only small entities use co-working spaces. 

Let us look at some of the reasons that are driving this move. 

The cost of renting traditional office space

Finding office rentals in downtown Toronto is a challenging task for a business of any size. Studies and market research done on the city’s office space show that at any given point in time, the office vacancy rate stands at an all time low of 1.6%, making it next to impossible for a business to find a space that is comfortable and fits in their budget. It is challenging for companies who are really looking to find customised space to meet their business needs. 

Even if they manage to fins a space, the costs are going to be sky high due to the low vacancy rate in the market. With co-working spaces, a company is able to find working spaces at reasonable costs, and with a certain degree of customisation and flexibility towards their business needs. 

Satellite Offices

There are many established companies in the city that are looking to expand their operations with a satellite office in another part of the city or the country for that matter. Usually for satellite offices, the budget for expansion is very low, and the company would just be looking for space to seat a few employees who don’t need to work out of the main office building. 

This approach would work for teams like Marketing, software development and so forth who don’t really need to work out from the main office, and as such, co-working spaces provide a huge benefit to the company to get low cost office space for such an expansion.

Lease periods

To get a traditional office space would certainly mean signing lease agreements for periods of 5 to 10 years, and sometimes even more than that, and this freaks companies out – most of the times. This is a long commitment, and most businesses are scared of making such a commitment. In such cases, co-working space in Toronto come to the rescue with their flexible lease period sometimes in months to a year, which is comfortable for most companies. These flexible spaces keep agility in the company, making them free to take decisions in short terms.