Canada Flexible Office Space Market Size

Canada Flexible Office Space Market Analysis

The Canada Flexible Office Space Market size is estimated at USD 1.22 billion in 2024, and is expected to reach USD 1.75 billion by 2029, growing at a CAGR of 7.58% during the forecast period (2024-2029).

With tenants realizing that pandemic-driven uncertainty is set to continue, they’re increasingly incorporating flex space into their workplace strategies as they move toward a more agile footprint that adapts to their changing needs. Employers and employees have very different preferences in terms of managing the return to the physical office. Companies can reconcile these differences with flex space. Looking ahead, the broader concept of flexibility will be critical for the office market—not just in terms of how spaces are designed and used but also in the physical locations where people gather and work.

Canadian cities, particularly Toronto, Vancouver, and Montreal, have vibrant startup ecosystems and attract entrepreneurs and tech companies. As a result, demand for flexible office spaces has increased in these urban centers. The Canadian flexible office space market has seen the entry of various coworking operators, from global providers like WeWork to local and specialized coworking spaces catering to specific industries or communities.

In the first quarter of 2023, office vacancy continues to climb in Canada's key cities as the sector underwent a once-in-a-generation transition, with tenants attempting to adjust to hybrid work and office owners attempting to preserve their attraction. As a result, the sector is in upheaval, with a growing divide appearing between uninspiring older workplaces and well-amenitized new premises. In 2023, the downtown office vacancy rate in Toronto will be 15.3%, the highest since 1995 in Canada's largest office market. The downtown office vacancy rate in Vancouver increased to 10.4%, the most since 2004, while Ottawa (13.2%) and Montreal (16.5%) also reached their all-time highs.