Key Metrics: 

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• 9 Toronto office landlords
• Over 100,000 office sessions 
• Over 500 companies and teams 
• Over $3,000,000 in transactions  

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Challenge

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The office-market is bifurcating into short-term, fractional bookings & longer-term, traditional leases. The traditional method of leasing an office has historically been controlled by brokers  and landlords - however with tenants’ needs drastically changing, brokers and landlords have been slow to adapt. Data from Flex Index shows that over 80% of companies are now using a fully-flexible or structured hybrid office strategy. And, that the average days per week in the office is less than 2.6 days per week - creating a utilization rate of 40%. This is one of the reasons why tenant renewal rates are at their lowest point ever. The office world has changed and so has the office customer. Landlords need new products that drive revenue, retention and net operating income. 

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Solution

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The Flexday marketplace was founded in Toronto to design and test new workspace products that could benefit both landlords and tenants - without requiring a broker. To this end, Flexday tested multiple traditional office category products (i.e. day desks, meeting rooms, private office, coworking office, etc) and tested new concepts (office-sharing, fractional suites, etc.) in order to determine what companies; 1) want from an office 2) how they plan to use an office and 3) how they would like to pay for it. By focusing deeply on one city (Toronto, Canada) we’ve also been able to unlock and understand the landlord challenges around operations, innovation, costs, ROI and digital marketing. As a result, the Flexday marketplace and digital solutions platform have enabled landlords to gain an unfair, tech-led advantage over their local competitors.  

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Results

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Toronto has become one of the leading fractional office markets in North America with over $3,000,000 in office transactions, so far. Landlords that partner with Flexday in order to market and monetize furnished office suites are seeing steady bookings with an AOV of $3,500. Finally, these landlords are first in line for more business as 18% of companies that use a fractional offices through Flexday, convert to a longer-term office lease.