Canada’s flexible office space market is heating up. Knotel, the scrappy U.S. operator now positioning itself as WeWork’s competitor in the enterprise space, is opening up its first location in Toronto.
The city is North America’s fourth largest metropolitan area, a financial services hub, and an aspiring FinTech startup haven. Over US$500 million went into that sector since 2017, according to a report from Toronto Finance International. This is small scale compared to other global financial hubs; Toronto fell off the global FinTech hub rankings conducted by The Institute for Financial Services Zug (IFZ) of the Lucerne University of Applied Sciences.
Canada’s economy is closely tied to the U.S. and global markets. Manufacturing and construction sectors accelerated country growth in recent months, as analysts weigh in on the impact that escalating global trade tensions and a growing fiscal deficit could have on mid to long-term growth.
Total population will inch towards 40 million by 2020, roughly the size of California. Gross domestic product (GDP) surpassed US$1.6 trillion in 2017. United States GDP for the same year pushed past US$19 trillion.
The large, steady, and mature economy is on target for the commercial real estate revolution. Other third parties vying for startup and corporate office demand include Breather and Spaces. The latter is an IWG portfolio brand along with Regus.