How Landlords In Toronto Compete With New Office Towers
In order to be competitive in an environment of new office towers and high vacancy rates, Canada’s landlords are refreshing their old office spaces with new build-ups to attract small and medium sized companies. Although the concept of office staging is not new, it has become a growing trend for the last 18 months.
CBRE has recently released a report on office staging and fitouts that have significantly increased across the established markets of Canada. Landlords can compete with co-working spaces by mixing open concept with private office spaces with small vacant rooms to serve the requirements of potential tenants. Tenants are offered with modern amenities like space for their breakout rooms and kitchen layouts.
Smaller companies and start-ups require more flexible and creative options and if landlords can provide for these needs, they can cultivate partnerships and opportunities along the way. Based on the results of the CBRE Research, at least a third of the users of co-working office spaces expect to move to leased offices or alternative environments. However, these tenants may not be looking forward to signing 10-years leases.
Efficiency is one of the factors that attract potential tenants. Large companies prefer to invest in their offices whereas start-ups and small businesses are focusing more on company growth. Start-ups do not have adequate time to spend in designing their offices and they prefer a space that has been built at a lower price per square foot.
In Toronto, the estimated cost for office staging ranges from $50 to $100 per square foot. This is considerably less than what a tenant will spend to improve an office because landlords are more experienced with build-outs and economies of scale. A relationship has been developed with contractors because of previous projects they have worked with. Landlords cannot predict the kind of tenants who will be moving in but there is an open plan to accommodate various requirements.
Every business has a different need but office fitouts in Canberra is prepared to invest some creativity so that employees will have a little fun while spending time in the space. When the office looks good, it can inspire the employees to be more productive and efficient.