Finding the perfect office for your business can be a daunting task, but with the right information and a strategic approach, you can find a space that meets your needs. In 2023, the office market in Canada has seen significant changes, and it is important to understand these trends to make the best choice possible. Here are a few tips :
Understand the market
Before the COVID-19 pandemic, the vacancy rate was around 10% nationally, all office types combined. However, this rate has since almost doubled. According to data for the first quarter of 2023, the national office vacancy rate is 18.4% for downtowns and 16.8% for suburbs in Canada. However, it is important to note that vacancy varies depending on the region and the type of property. Class B buildings, which are generally older and less well-equipped, saw a significant rise in their vacancy rate, reaching 22.7% nationally. This clearly indicates a split in the market between Class A and Class B buildings.
Consider location and type of property
Location and type of property are key factors in choosing an office. Offices in the suburbs are generally cheaper than those in the city centre. In the first quarter of 2023, nationally, the average net rent for a Class A building was $30 per square foot in the city centre and $19 net in the suburbs. For Class B buildings, the average net rent was $20 per square foot downtown and $16 net in the suburbs. It is important to note that Class A buildings are generally more modern, better equipped and located in more desirable locations than Class B buildings. However, Class B buildings may offer more affordable rents, although they may require more significant investments in terms of renovation and improvement.
Consider the cost
The cost of renting an office is largely determined by its location and category. It is therefore essential to take these factors into account when budgeting. Older downtown buildings with outdated equipment generally have a harder time attracting and retaining tenants, which is reflected in their higher vacancy rates.
Take into account the needs of employees
Another factor to consider is the location of your employees. Avoiding long travel times for your employees can contribute to their satisfaction and productivity. Understanding the profile of your employees, whether they are more suburban or downtown oriented, can help you choose a location that suits everyone.
Consider flexible workspace
Flexible workspace is a growing trend in the office market. These spaces offer greater flexibility in terms of size, rental duration and services included. The demand for these spaces has increased, especially in big cities like Toronto and Vancouver. If your business needs flexibility, it might be a good idea to consider this option.
In conclusion, finding the perfect office for your business in Canada in 2023 requires a thorough understanding of the market, careful attention to location and property type, and cost consideration. It’s clear that offices in the suburbs are generally less expensive than those in the city center, and there’s a noticeable split between Class A and Class B buildings. difference in their job satisfaction. With this information in hand, you will be well placed to make the best choice for your business.