As Canadians embrace more diverse models for work, business development, and career acceleration, co-working spaces and incubators offer flexibility, skill building courses, and networking benefits. -By Robin Byrd

There’s a myth floating around that co-working spaces and incubator type arrangements are just for young entrepreneurs or freelancers. This is simply not true. In Canada right now, some 38% of those using such spaces are the existing employees of established corporations, a figure that is only expected to rise in the coming years.

This statistic and others like it paint a picture of a fresh trend in Canadian work habits and business models. Companies and individuals are thinking about the possibilities of space differently. In many cases they are eschewing traditional office and working models in favor of more flexible, social, and educational options that allow for more innovation, efficiency, and financial grace.

Not just for freelancers these days

Canada ranks sixth in the world overall for the sheer number of co-working and flexible office it has around the country. There are upwards of 600 such spaces, with most able to fit around 100 people each, and the space is growing fast. As little as two decades ago, there were less than a dozen such spaces in all of Canada.

Some 40% of the overall demand comes from established companies. Increasingly, taking on temporary office space or renting space on behalf of remote workers is standing in for setting up a formal office or provincial headquarters of one’s own. Co-working spaces can allow small, medium, and large multinational firms to quickly and easily scale their presence in an area, while also giving considerable flexibility if a particular project or client engagement doesn’t go as planned. Companies are also increasingly “farming out” workers to incubation zones or accelerator programs. This can allow teams to work on special projects or do internal launch sprints in a start-up like environment, while still allowing the rest of the company to get on with day-to-day priorities. It also lets firms give star employees or groups of workers extra development and mentorship opportunities.

A place to expand networks and skills

The trend toward remote-first and hybrid work models has had some workers worried about being isolated and cut off from personal development and networking opportunities. Indeed, this is an argument that is often made when firms are considering a return-to-office policy – workers need to be around their peers and coworkers in order to properly develop over the course of their careers. Co-working and incubation space models step directly into this conversation with a popular alternative option to both isolation and full office format.

Workers who are able to use co-working spaces and incubators report that they are more engaged and that their experience improved their professional success, according to the Global Co-working Conference Unconference survey. Some 82% said co-working expanded their professional networks, 80% leaned on other space members for help or guidance, and 69% said they had learned new skills through their space. This may be why some 89% say they are happier and less lonely since they started using the shared space.

Canada’s most popular co-working and incubation options

Co-working spaces and incubators in Canada exist nationwide, though they are not evenly distributed. Urban markets and densely populated zones have the highest concentration of co-working spaces. Many incubators are also associated with or sponsored by universities, who use them as brain trusts and magnets for enrolling bright, ambitious students, since incubators are associated with jumps in enrollment.

The largest flex office provider in Canada is Regus, which controls some 42% of the market by total square footage. Many of these locations are large and urban, with a marked presence in Toronto and Vancouver. However, though a major player, Regus often loses out in headline coverage to companies like Lab T.O., L’Atelier, and District 28, which are viewed as more trendy and up-and-coming operations.

L’Atelier, for example, hosts regular community events for its members in addition to providing workspaces, helping to build networks and foster connection between its freelance and business members. The woman-owned space in Vancouver’s trendy Gastown area emphasizes a positive work atmosphere and allows members to bring their dogs to work. Meanwhile, up in Winnipeg, the CMU Centre for Resilience provides a 6,000 square foot open-concept workspace for civic-minded social innovators, entrepreneurs, and researchers located on campus in Founders Hall. It actively encourages members to take classes and access on-campus recourses to help members grow skills, meet goals, and deepen connections with each other and the students who may go on to work for some of the companies involved thanks to having a warm link to the social innovation community.

Smaller, more community or niche focused spaces are also finding success in the second and third tier cities of Canada. One example of this is Coastline Colab, located in Powell River in British Columbia. It was opened as part of the Powell River Entrepreneurial Ecosystem initiative, and attracted local entrepreneur by offering focused skill building programs, like an 8-week Business Planning Fundamentals program that included business coaching. As a result, the space was able to build a robust community of locally based business owners and freelancers that enabled the space to keep going even after the initial initiative launch was completed.

So, it very much depends on what is being sought. Firms looking to add flexible office space for drop-in workers or to quickly scale in a tight office market might opt to go with Regus properties, while firms seeking smaller cohorts and development opportunities might choose something more niche. Or, given the modest price points associated with many co-working space and incubator members, companies and individuals may choose to hold multiple space memberships for maximum flexibility and reach. The main thing, of course, is not to ignore this trend. Co-working spaces and incubators represent a massive area of growth in Canada and an opportunity for both start up and established firms to work differently. By considering what’s needed and what’s available, firms and individuals can find great spaces to do good work and grow.