As the population of Toronto grows and the demand for housing grows, so does the demand for office space by expanding businesses. Economic growth is a great thing for the city and the small businesses that operate out of it. But with the increased demand for office space the leasing rates also go up. In fact, Toronto is becoming almost as expensive to do business in as Manhattan!
Acording to RENX.ca (Rental Estate News Exchange): “In the absence of new supply, and with relocation options in existing buildings severely restricted for tenants of all sizes, rental rates continue to climb. Competition is also heated in the sublet market, where rental rates rival or even surpass what’s being offered directly by landlords.” Also in that same April, 2019 RENX.ca article Toronto office market: Landlords can ‘name their price’, “Downtown Toronto had a 1.9% vacancy rate, which was down 60 basis points year-over-year. The downtown Toronto office vacancy rate has dropped from 7.1% at the end of 2009 despite constant new construction.”
Unlike larger businesses that can afford to sign long-term (higher-priced) leases on downtown offices, small businesses can often not afford to risk committing to long-term leases (especially in the most expensive downtown locations). Location, location, location is something that business leaders and business consultants have long preached, and is still important in 2019. But the fact that downtown Toronto rental space is actually becoming more and more expensive, is why you need to consider a shared office space for your small business. It’s also important to be in that right downtown location.
Co-locating and sharing office expenses with one or two other small businesses may be sharing space, but it doesn’t reduce your risk – because you’ll most likely need to still sign a long-term lease. Sharing office space at an office business centre allows you to pay for the space you need and be on a month-to-month rental agreement, or a flexible rental term, that’s suited to your small business needs. Also, renting space from a business centre that has executive suites, allows you to budget for your variable office costs without any “surprises.”
These types of officing situations are also known as serviced office space, business centres, co-working space or flexible work space solutions. Essentially, they’re turn-key office solutions that provide an office space shared by other companies or professionals. These offices often come fully equipped and furnished. Most importantly, they’re a ready-made solution ideal for established companies looking to open a branch office, or for companies looking to save time and money when initiating start-ups. Besides the lower costs, a shared office space can also help home-bound entrepreneurs feel less lonely while providing a more upscale image for a company.
In many cases, your rent at an executive office suite includes utilities and business real estate taxes. The rental costs are usually fixed and do not fluctuate, because the office business centre has itself locked into long-term lease rates with the building that it leases space from. Telsec Business Centres offers fully furnished and additional ‘a-la-carte’ services such as inexpensive network printing, copying, binding, scanning, faxing, emailing and more. Telsec can also save on the capital expenditures or leasing costs of office furniture or office equipment. And, at Telsec, the coffee, tea and filtered water are always free!