From its plaster hand-carved lobby ceilings to its Art Deco-inspired design, the iQ Offices at 302 Bay St. combine marble, wood and aged brass to create a modern and elegant vibe.Supplied/August Media
Born from the bones of a former Bank of Montreal site, Toronto’s 302 Bay St. welcomed a new tenant when iQ Offices – the largest Canadian-owned co-working company – started subleasing the heritage building in 2023.
Led by chief executive officer Kane Willmott and partner Alex Sharpe, the plan was to restore the 14-storey, 108-year-old building with the aim of creating Canada’s most luxurious co-working space, inspired by the five-star design and service found in the world’s best hotels.
“The best corner in the country is King and Bay [streets],” says Mr. Willmott, adding that restoring a historic building connected to Toronto’s underground PATH walkway was a “no brainer.” The approximately $19-million renovation took almost two years to complete, with all 14 floors now complete after the first seven floors had opened in February.
The resurgence of co-working spaces
The co-working industry is recovering as more people return to offices.
After the pandemic hit in April, 2020, Statistics Canada reported that 40 per cent of Canadians were mostly working from home – a figure that declined to 20 per cent by May, 2023. In November, 2024, a Labour Force Survey found about 12.5 per cent of Canadians worked exclusively from home, while 11.5 per cent had hybrid arrangements.
This dovetails with co-working data from real estate company Colliers, which reported in 2023 that flexible office space was expected to represent 8 per cent of national office inventory, up from the 6 per cent predicted in 2021. A report by market researcher Mordor Intelligence suggested the Canadian co-working market size will reach an estimated $4.87-billion this year, with a compound annual growth rate of roughly 8 per cent, potentially taking the market to $7.14-billion by 2030.
“More and more companies are saying they want people back to the office, and I believe it’s because they see value in people being together,” says Mr. Willmott. “There are only three reasons to invest in office space as a business: to attract, retain and engage talent. If you’re not doing that, you shouldn’t spend $1 on [permanent] office space.”
The former Bank of Montreal heritage building at Toronto’s 302 Bay St. has been transformed into a luxury, 14-storey co-working spot that offers free drinks, wellness rooms with massage chairs, along with a soon-to-open sauna and cold plunges.Supplied/Garcia Creative
Enhanced privacy, high-end design
From its plaster, hand-carved lobby ceilings to its Art Deco-inspired design, the iQ Offices at 302 Bay St. are not your typical co-working space.
A barista makes free drinks in the lobby, while members can enjoy six wellness rooms with massage chairs, kitchens on every floor, soundproof phone booths and an array of meeting rooms and offices of every size. Two cold plunges, plus a sauna, showers and towel service open in the fall.
Marble, rich wood and aged-brass detailing evoke an opulent vibe, with architecture by Arcadis and Pomeroy, design by Arcadis, construction by Green Bridge and restorations by HRI Group. When it came to the design, no details were too small or expensive – from the built-from-scratch rooftop patio to the privacy enhancements hidden in the walls.
The new iQ Offices are the culmination of years of industry experience and innovation, especially when it comes to protecting the intellectual property of members, says Mr. Willmott. Enterprise-grade connectivity is secure, white noise plays softly in public hallways and office spaces to muffle conversation, and angled HVAC pipes were designed to block sound and ideas from escaping through air vents.
While both the seen and unseen building elements play a role in attracting companies and their employees, the real problem that co-working spaces solve is how to keep workers coming in week after week.
“How are we going to earn the commute?” says Mr. Willmott. “Our core business is bringing people into the office. If we can’t bring people into the office, our business fails.”
When a business owns or rents office space and it goes underused, it can harm the company’s bottom line. Businesses are therefore leasing co-working spaces to help drive investment risk down, Mr. Willmott says. “For large organizations, procurement is complex. We save them that work, time and money so they can focus on what they do best.”
The new iQ Offices at 302 Bay St. contain meeting rooms and offices of every size. The space prioritizes member privacy with secure connectivity, uses white noise to muffle office conversations and angles HVAC pipes to prevent sound from escaping through vents.Supplied/August Media
Beyond downtown – suburban and midtown markets
In Canada, prime downtown spots in major cities are not the only locations with co-working spaces. Mid-size spaces in midtown neighbourhoods and some suburban areas are seeing co-working investments, too.
In Quebec, Montreal-based co-working company Hedhofis specializes in stylish, mid-size spaces that cater to small- and medium-sized businesses, with 10 locations currently operating.
“We don’t take on 100,000 square feet or have many big companies as clients – that’s not our business model,” says Tuan Ngo, vice-president of real estate and development at Hedhofis. “A lot of times, our clients live within five kilometres of our office spaces.”
Hedhofis has several locations across Montreal, with less focus on downtown. Its spaces are bright and well-designed in walkable neighbourhoods, with Mr. Ngo acknowledging there has been a lot of demand in Montreal’s East End.
To meet the demand, a new Hedhofis location opens in the fall in the Technopôle Angus Eco-district in east Montreal, an established neighbourhood with “lots of young families, cafés and shops, which is what we look for,” says Mr. Ngo. Laval’s first Hedhofis location will soon open to meet demand.
Future depends on partnership
The growth of the co-working market depends on the relationships between landlords and tenants and between tenants and employees, says Ashley Dere, vice-president in commercial real estate at Colliers Canada.
“I think the co-working trend is going to continue to thrive, but a lot of it is based on the financials,” Ms. Dere says. “It has to continue to be an affordable option. There’s got to be a partnership between the landlord or private owner and the co-working company leasing or renting who are adding sustainability, services and amenities that will bring new life to the building.”
iQ Offices signed a long-term lease at 302 Bay St., with no plans to leave the jewel of their business any time soon.
“My favourite thing about this building is the rooftop deck,” says Mr. Willmott. “The rooftop is the essence of who we are. We are committed to this building long term, we do the hard work and we don’t cut corners.”