Article dans la Magazine Espace

Coworking has evolved over the past decade and even more so since the pandemic. What was once considered a "passing trend” in the office market for solotrepreneurs or startups, has evolved and accelerated to encompass companies of all sizes.

Prior to the pandemic, the coworking trend was already revolutionizing the worklandscape, reshaping not only where and how we work, but also impacting thedynamics of office space supply and demand in Quebec and across Canada.

With the rise of the hybrid work model and a shift in conventional work habits,companies are embracing new ways of operating, placing greater importance onflexibility, convenience, amenities, and location. However, a fundamentaldriver behind the decision-making process for office spaces, be it traditionalor coworking, is the intrinsic value of
collaboration—the essential ingredient for fostering in-person networking,learning, and creativity.

Coworking and the modern hybrid era

In 2022, the coworking office market accounted for nearly 10 percent of officespace leasing in major cities around the world, and it is going to keep growingand evolving. The demand for flex space at IWG's coworking brands has climbedby 40 percent since the pandemic, according to [WG's CEO for the Americas,Wayne Berger, who joined a recent Colliers Talks Podcast. In this episode, WeWork'sHead of Sales for the Atlantic region, Nick DeMarinis, also expressed thattheir overall facilities demand has increased by 112 percent year-over-year.

Hedhofis, a Quebec-based coworking company, opened. its first location on theSouth Shore of Montreal in 2017 and has since grown to 10 locations across theGreater Montreal Area and Quebec City, serving and adapting to the evolving workplacetrends, including the growing demand for longer, more flexible terms, as wellas dedicated corporate suites for larger users. as well as dedicated corporatesuites for larger users.

“Hybrid work contributes to the overall success of coworking,” President ofHedhofis Frédéric Deshaies explains. “Today, we are delighted to see that moreand more companies, some with as many as 50 employees, are embracing this newway of working. The success they are experiencing proves that coworking issuited to all types of companies, whatever their size or ambition."

The rise of flexible work in the suburban markets

In today's hybrid work landscape, the concept extends beyond the confines oftraditional home and office settings. A new trend is emerging, wherein professionalsare opting for coworking sites near their homes. This shift eliminates longcommutes to bustling urban centres like downtown Montreal, but also offers aprofessional environment to conduct business and network with other people and companies.Hedhofis has capitalized on this trend by expanding into burgeoning marketssuch as Brossard, Lévis, Sherbrooke, and Ste-Thérése, with plans for furtherexpansion.

Flexibility has become a vital component in today's work landscape. By offeringshorter commitments and the flexibility to explore different officelayouts, locations, and team configurations, coworking companies like Hedhofisenable organizations to embrace the hybrid work model. The demand for space atHedhofis and other similar venues in the region is not only driven by marketingcompanies, tech startups, finance workers,
and consultants, but also by larger enterprises seeking satellite offices insuburban areas to increase proximity to their workforce and align with thehybrid work movement.

The demand for flexible office space, including coworking, now representsapproximately 8 percent of the total office inventory in Canada, according toColliers’ New Age of Hybrid Work report. As companies consider their futurespace needs, the growing demand for "flex space" or workspace outsideof their core market suggests that coworking will occupy a larger proportion ofthe total office inventory going forward. This flex space can include
shared designated areas within an office building, such as bookable boardroomsor multi-functional rooms. It can also refer to short-term leases of fullyfurnished spaces, as highlighted in the report.

Furthermore, 21 percent of companies surveyed said they would consider flexoffice space or coworking as part of their future space strategy, while approximately33 percent remain undecided. This indicates ample untapped opportunities foradditional coworking spaces in the future.

Embracing the changes in the workplace

Colliers Real Estate Management Services (REMS) recently asked roughly 500Canadians who work in an office about what motivates them to work in the officeinstead of at home. Respondents indicated that certain activities or worksituations were more suited for the
office environment. For instance, meetings were felt to be more effective inperson than online, or over the phone. Having a physical workspace facilitates brainstorming,idea generation, relationship-building, and knowledge sharing, all of whichwere identified as
better accomplished in the office.

Office developers are also actively embracing community-oriented features,exemplified by Le Hub, an innovative office building scheduled to break groundthis summer at 1711 Boulevard des Promenades in Saint-Hubert. This project willintegrate collaborative common areas throughout the building, fostering adynamic ecosystem for its tenants and prioritizing human connection and cooperationin the modern workplace, thereby promoting professional well-being.

At Ivanhoe Cambridge’s PVM Campus in downtown Montreal, an entire upper floorof
1 PVM has been designated for collaborative and flex spaces operated by WeWork.The space provides bookable flexible rooms, support staff, videoconferencingsystems, and collaboration and social spaces available to all tenants of thebuilding.

Simultaneously, we are witnessing a growing trend among traditional officelandlords in
Montreal that are leasing space to coworking companies as part of theirstrategic approach to address high office vacancy rates and. Revitalize theirproperties. By having a coworking firm as a tenant, landlords are diversifyingthe use of their spaces, safeguarding against downturns in specific industries,all the while cultivating a vibrant community within their buildings.

The advantage for landlords is also strategic. As the startups take scale, theycan naturally
expand into the building's traditional office suites and become long-termtenants for the landlord.

The untapped potential of coworking

Coworking has emerged as a prominent player in our office landscape, propelledto the
forefront of our decision-making by the rise of hybrid work. As we delve deeperinto its merits, we gain an understanding of the myriad of benefits it offers.Flexibility, adaptability, cost efficiency, and access to professionalamenities and tools are just a few advantages that surpass what most homeoffice environments can provide.

Yet, perhaps the most significant advantage lies in the sense of community andcollaboration it fosters across diverse businesses and companies. During thepandemic, the commercial world faced a deficiency in genuine connections. The in-person,real-life interactions that coworking spaces offer hold tangible advantagesthat will continue to propel businesses forward.