Flexible office spaces on the rise with Canadian companies still deciding how to work

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“We’re in the middle of the single largest … structural shift in commercial real estate and in how, when, where and what people call work.”

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Nearly two in five managers prefer to be fully in-office compared to just one-fifth of employees, according to the report. Thirteen per cent of employees prefer fully remote work compared to just four per cent of those in management. With companies moving towards flexible work arrangements, office-vacancy rates in Canada rose from 11 per cent at the end of 2020 to 13 per cent by the end of 2022. IWG took advantage of this trend to fuel growth by partnering with building owners. The owners put up capital to invest in a space and pay IWG a management fee to operate it. Over the past year, 90 per cent of new locations came from partnerships, compared to five per cent pre-pandemic, said Berger.

While the long-term impact on commercial real estate is still playing out, there’s already been a shift in discussions between landlords and tenants, said Duda. One notable change has been in the number and nature of additional features landlords are offering tenants. There is a high demand for quality amenities from companies wanting to lure employees back into the office, said Duda.

“It’s not just about their office space, it’s about ensuring they have accessibility to great fitness memberships… to food on site, great events, and everything they need from a health and wellness perspective both as a worker and as a person will be part of that IWG experience,” said Berger.

 

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