Workspace Hubs: Final Feasibility Study Report by Kevin Hurley

WORKSPACE HUBS: FINAL FEASIBILITY STUDY REPORT Prepared by: Kevin Hurley & Tonya Surman

APRIL 2014

made possible by generous support from:

! ! This!report!was!completed!in!Fall!2013,!by!the!Centre!for!Social!Innovation,!with!support!from!the! Toronto!Atmospheric!Fund,!Enterprising!NonDProfits!Toronto!and!Metrolinx.!! ! The!materials!included!reflect!the!fieldwork!and!research!carried!out!by!!Tonya!Surman!(CEO,!Centre! for!Social!Innovation)!and!Kevin!Hurley!(Project!Manager,!Centre!for!Social!Innovation)!between! January!2012!and!July!2013.!! ! Report!author:!Kevin!Hurley!

! ! ! !

! ! ! ! ! ! ! ! ! ! ACKNOWLEDGEMENTS ! In!addition!to!the!generous!support!from!our!study!funders,!we!would!like!to!recognize!the!following! for!their!contributions!to!this!study:! ! Frank!Maidens!&!Vivian!Hui,!studio!function!inc.! Patrick!Spencer!&!Gordon!Feller,!Cisco!Systems!Inc.!(Internet!Business!Solutions!Group)! Ryan!McAskile,!DTZ!Barnicke!Ltd.! Christopher!Chen! Karine!Jaoiuch,!Centre!for!Social!Innovation! As!well!as!the!many!people!who!provided!valuable!access,!insight,!feedback!and!advice.!

CONTACT ! Visit!www.socialinnovation.org!for!more!information.! ! Centre!for!Social!Innovation! 720!Bathurst!Street! Toronto,!ON!!M5S!2R5! Canada! (416)!979D3939! ! info@socialinnovation.org!

TABLE OF CONTENTS Foreward()))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(i! 1.! Introduction:(Background(&(Context())))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(1! 1.1.! Feasibility!Study!Objective!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!1! 1.2.! Guiding!Principles!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!2! 1.3.! The!Increasing!Costs!of!Congestion!as!a!Tipping!Point!to!Mass!Telecommuting!DDDDDDDD!2! 1.4.! Project!Focus:!PlaceDmaking!in!Suburban!Centres!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!3! 1.5.! Target!Audiences! DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!3! 1.6.! Social!&!Environmental!Impact!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!4! 1.7.! Associated!Trends!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!4! 1.7.1.! The'Future'of'Work'000000000000000000000000000000000000000000000000000000000000000000000000000000000'4! 1.7.2.! Social'Entrepreneurship'&'Innovation'000000000000000000000000000000000000000000000000000000000'5! 1.7.3.! Growth'of'Coworking'0000000000000000000000000000000000000000000000000000000000000000000000000000000'5! 1.8.! Comparable!Examples!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!6! 1.9.! Background:!About!the!Centre!for!Social!Innovation!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!6! 1.9.1.! Background:'Knowledge'and'Experience'000000000000000000000000000000000000000000000000000000'7! 2.! Market(Research(Findings())))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(9! 2.1.! Important!Regional!Factors!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!9! 2.2.! Global!Coworking!Trends!!(contributed!by!Cisco’s!IBSG)!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!10! 2.3.! GTHA!Commuter!Profiles!!(from!Smart!Commute/Metrolinx!&!Pembina!Institute)!DD!11! 2.4.! Corporate!Readiness!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!13! 2.5.! Scan!of!Competitive!Alternatives!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!15! Section!Summary!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!17! 3.! Business(Model(Analysis())))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(18! 3.1.! Customer!Segments!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!18! 3.1.1.! Mobile'&'Remote'Workers:'“Various'Shapes'and'Sizes”'00000000000000000000000000000000000'18! 3.1.2.! Global'Segment'Trends'000000000000000000000000000000000000000000000000000000000000000000000000000'19! 3.2.! Value!Proposition!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!20! 3.3.! Channels!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!20! 3.4.! Customer!Relationship!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!20! 3.5.! Revenue!Streams!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!21! 3.6.! Key!Resources!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!21! 3.7.! Key!Activities!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!21! 3.7.1.! Technological'Components'0000000000000000000000000000000000000000000000000000000000000000000000'22! 3.7.2.! Enabling'Role'of'Technology'00000000000000000000000000000000000000000000000000000000000000000000'22! 3.8.! Key!Partners!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!22! 3.9.! Cost!Structure!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!22! Section!Summary!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!23! 4.! Communications(and(Brand(Strategy())))))))))))))))))))))))))))))))))))))))))))))))))))))))))(24! 4.1.!Communications!Strategy! DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!24! 4.1.1.! Messages'for'the'Partner'Audience'000000000000000000000000000000000000000000000000000000000000'24! 4.1.2.! Messages'for'the'Macro'Audience'00000000000000000000000000000000000000000000000000000000000000'25! 4.1.3.! Messages'for'the'Micro'Audience'000000000000000000000000000000000000000000000000000000000000000'26! 4.2.!Branding!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!26!

! 5.(Location(Profiles()))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(28! 5.1.!Regional!Overview!&!Policy!Framework!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!28! 5.1.1.! Places'to'Grow'00000000000000000000000000000000000000000000000000000000000000000000000000000000000000'28! 5.1.2.! The'Big'Move'&'“Mobility'Hubs”'0000000000000000000000000000000000000000000000000000000000000000'30! 5.2.!Shortlisting:!Establishing'Shortlist'of'Key'GTHA'Workspace'Hub'Sites!DDDDDDDDDDDDDDDDDDDDDD!31! 5.3.!Individual!Hub!Location!Analysis!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!32! 5.3.5.! Downtown'Hamilton'000000000000000000000000000000000000000000000000000000000000000000000000000000'32! 5.3.5.! Midtown'Oakville'0000000000000000000000000000000000000000000000000000000000000000000000000000000000'35! 5.3.5.! Downtown'Burlington'0000000000000000000000000000000000000000000000000000000000000000000000000000'37! 5.3.4! Downtown'Brampton'000000000000000000000000000000000000000000000000000000000000000000000000000000'39! 5.3.5.! Mississauga'City'Centre'000000000000000000000000000000000000000000000000000000000000000000000000000'41! 5.3.6.! Vaughan'Metropolitan'Centre'000000000000000000000000000000000000000000000000000000000000000000'43! 5.3.7.! Richmond'Hill'/'Langstaff'Gateway'000000000000000000000000000000000000000000000000000000000000'45! 5.3.8.! Markham'Centre'00000000000000000000000000000000000000000000000000000000000000000000000000000000000'47! 5.3.9.! Downtown'Pickering'000000000000000000000000000000000000000000000000000000000000000000000000000000'49! 5.3.10.! Toronto:'Downtown'CBD'00000000000000000000000000000000000000000000000000000000000000000000000'51! Section!Summary!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!53! 6.! Financial(Summary()))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(54! 6.1.! Model!Overview!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!54! 6.2.! Site!and!Administration!Approach!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!54! 6.3.! Modeling!by!Size:!5,!15!and!30,000!square!feet!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!55! 6.4.! Model!Inputs:!Revenue!Assumptions!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!55! 6.5.! Model!Inputs:!Expense!Assumptions!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!56! 6.6.! Model!Inputs:!Grants!&!Sponsorships!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!58! 6.7.! Phasing!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!58! 6.8.! Financial!Outlook:!Years!1D10!(not!adjusted!for!inflation)!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!59! 6.9.! Financial!Outlook:!Years!11D20!(not!adjusted!for!inflation)!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!60! Section!Summary!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!61! 7.! Implementation:(Options(Analysis()))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(62! 7.1.! Workspace!Hubs!Independent!Vision!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!62! 7.2.! Secure!Major!Corporate!Partnership!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!62! 7.3.! Real!Estate!Owner/Developer!Partnership!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!63! 7.4.! Government!Sponsorship!/!Government!Ownership!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!63! 7.5.! Cultivate!a!Regional!Network!Among!LocallyDOwned!Coworking!Centres!DDDDDDDDDDDDD!64! 8.! Conclusions(&(Recommendations())))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))(66! Lessons!Learned!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!66! Bottom!Line!&!Recommend!Next!Steps!DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!66! !

FOREWARD !

The!purpose!of!this!report!is!to!summarize!the!investigative!work!that!has!been!carried!out!around! the!concept!of!creating!a!network!of!locallyDfocused!sharedDwork!centres!within!the!developing! Mobility!Hub!network!of!the!Greater!Toronto!and!Hamilton!Area.! ! We!believe!that!the!relationship!between!mobility!and!work!is!changing!rapidly,!and!with!our!region! struggling!with!problems!linked!to!traffic!congestion,!integrating!sharedDwork!centres!(â&#x20AC;&#x153;Workspace! Hubsâ&#x20AC;?)!into!the!developing!mixedDused!density!around!our!regionâ&#x20AC;&#x2122;s!transportation!nodes!holds! valuable!potential!for!improving!workDlife!balance!and!strengthening!our!regional!economy.! ! The!Centre!for!Social!Innovation!(CSI)!is!a!pioneer!in!the!creation!of!shared!workspaces.!Our!work!is! focused!on!creating!these!spaces!and!communities!with!a!focus!on!social!impact.!We!see!the!potential! to!transform!neighbourhoods,!communities,!and!transportation!patterns!by!changing!how!work! happens.!This!said,!this!report!is!not!an!expansion!plan!for!CSI,!but!rather!an!exploration!into! creating!something!entirely!new:!a!conceptual!roadmap!for!creating!a!network!of!meaningful!places,! focused!on!faceDtoDface!networks,!collaboration,!creativity,!community,!and!work.! ! This!feasibility!study!aimed!to!objectively!and!rationally!uncover!the!strengths!and!weaknesses!of!a! proposed!forDprofit!venture,!opportunities!and!threats!as!presented!by!the!environment,!the! resources!required!to!carry!it!through,!and!ultimately!the!prospects!for!success.! ! Having!completed!an!inDdepth!analysis,!we!have!come!to!the!conclusion!that,!pursuing!the! Workspace!Hubs!Project,!with!the!original!intentions!we!set!out!with!would!be!a!poor!decision.! Simply!put,!we!fear!that!the!projected!capital!costs!are!too!high!and!the!implementation!timeline!is! too!lengthy,!exposing!the!initiative!to!unreasonable!risk!to!investors.!!! ! Furthermore,!during!the!period!of!time!of!this!research,!many!new!coworking!initiatives!have! opened,!or!are!in!the!process!of!opening,!around!the!GTHA.!!Networks!among!the!coworking!spaces! are!also!developing;!strengthening!the!individual!spaces!as!well!as!increasing!the!value!proposition! to!their!members.! ! Where!we!feel!we!can!make!an!impact!however,!is!in!taking!this!decade!of!experience!in!creating! successful!communities!around!shared!workspaces!to!support!markets!outside!of!Toronto,!where! local!groups!and!organizations!are!hatching!plans!for!locallyDfocused!shared!work!spaces!themselves.! ! While!we!have!come!to!the!conclusion!that!the!originally!proposed!concept!is!too!costly,!we!still!feel! there!is!sound!logic!in!linking!new!shared!work!spaces!to!the!Mobility!Hub!network,!and!believe!in! the!transformational!impact!that!this!concept!could!have!at!the!local!and!regional!economic! development!level.!We!feel!that!based!on!the!details!written!above,!our!best!efforts!should!be!focused! on!assisting!independent!regional!agencies!to!create!their!own!locallyDfocused!spaces.! ! We!believe!that!institutional!partners!that!share!this!vision!could!also!play!a!role!in!incentivizing! local!shared!spaces!to!be!woven!into!the!fabric!of!the!Mobility!Hub!Network.!It!is!clear!that!the! growing!coworking!movement!could!play!a!vital!role!in!fulfilling!this!vision.!Certainly!the!Centre!for! Social!Innovation!would!be!interested!in!pursuing!strategies!to!bring!a!more!intentional!process!to! this!network!development.!We!welcome!a!conversation!with!stakeholders!who!share!our!vision.! ! ! Tonya!Surman!CEO!of!the!Centre!for!Social!Innovation! ! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! i!

1. INTRODUCTION: BACKGROUND & CONTEXT ! “For'many'knowledge'workers,'working'virtually'is'already'a'fact,'whether'they'happen'to'be' working'from'home,'in'the'office,'or'elsewhere.'We'are'all'dealing'with'networks'of'information' technology'and'data'streams'that'connect'us'both'within'office'buildings'and'across'time'zones.' These'capabilities'certainly'call'into'question'the'logic'of'being'there'in'an'office'full0time.' ' “Yet'real'places'keep'coming'back'to'haunt'us,'almost'as'if'to'remind'us'that'they'are'still'where'it' really'happens.'Places'where'people'can'work'together'face0to0face'are'still'fundamental'to'the' most'critical'aspects'of'work'performance'and'creativity.'Technology'and'networks'have'not'at'all' replaced'the'value'of'getting'together'in'physical'locations'for'the'sparks'of'creativity'that'doing' so'creates.'' ' “Technology'has'not'replaced'place.'Rather'it'is'augmenting'the'places'where'the'most'important' things'happen.'That'is'why'cities,'as'the'ultimate'networks'of'networks,'have'reasserted'themselves' as'the'central'drivers'of'creativity'in'our'economy.'' ' “Technology'is'helping'us'imagine'a'future'of'urban'living'and'working'as'a'blended'experience.' Technology'is'enabling'us'to're0evaluate'and'reimagine'how'we'work'and'live'across'all'kinds'of' spaces.'It'is'enabling'us'to'repurpose'the'under0occupied'single0use'office'building'as'a'hub'of' social'connectivity'and'interaction.'' ' “Let’s'acknowledge'that'technology'is'enabling'us'to'reimagine'our'living'and'working'lives'in'a' much'broader,'more'sustainable,'and'more'valuable'sense.'The'way'we'live'and'work'is'already'a' creative,'blended,'hybrid'240hour'mash0up.'Now'our'buildings'and'cities'should'be'redesigned'to' follow'suit.”' ! ! D!Andrew!Laing,!Global!Practice!Leader!for!AECOM!in!Forbes'Magazine,!March!8,!2013! !

1.1. Feasibility Study Objective ! The!purpose!of!this!report!is!to!summarize!the!investigative!work!that!has!been!carried!out! around!the!concept!of!creating!a!network!of!locallyDfocused!sharedDwork!centres!within!the! developing!Mobility!Hub!network!of!the!Greater!Toronto!and!Hamilton!Area.!! ! We!believe!that!the!relationship!between!mobility!and!work!is!changing!rapidly,!and!with! our!region!struggling!with!problems!linked!to!traffic!congestion,!integrating!sharedDwork! centres!(“Workspace!Hubs”)!into!the!developing!mixedDused!density!around!our!region’s! transportation!nodes!holds!valuable!potential!for!improving!workDlife!balance!and! strengthening!our!regional!economy.!! ! The!Centre!for!Social!Innovation!(CSI)!is!a!pioneer!in!the!creation!of!shared!workspaces.!Our! work!is!focused!on!creating!these!spaces!and!communities!with!a!focus!on!social!impact.!We! see!the!potential!to!transform!neighbourhoods,!communities!and!transportation!patterns!by! changing!how!work!happens.!! ! This!said,!this!report!is!not!an!expansion!plan!for!CSI,!but!rather!an!exploration!into!creating! something!entirely!new.!A!conceptual!roadmap!for!creating!a!network!of!meaningful!places,! focused!on!faceDtoDface!networks,!collaboration,!creativity,!community!and!work.! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 1!

Section!One!!Introduction:!Background!&!Context!

This!feasibility!study!aims!to!objectively!and!rationally!uncover!the!strengths!and! weaknesses!of!a!proposed!venture,!opportunities!and!threats!as!presented!by!the! environment,!the!resources!required!to!carry!through,!and!ultimately!the!prospects!for! success.!

1.2. Guiding Principles ! As!we!set!out!on!this!investigation,!we!did!so!with!the!following!set!of!principles!in!mind:! ! ! Focus!on!suburban!centres! ! Plan!for!a!network!of!locations!with!GTHA!coverage! ! Change!how!people!work…!fundamentally!change!commuter!patterns! ! Be!an!attractive!alternative!for!corporate!mobile!workers!and!teleworkers! ! Activate!local!entrepreneurs! ! Connect!innovators!across!sector/industry!boundaries! ! Contribute!to!a!lowerDcarbon!economy! ! Stress!the!“hyperDlocal”,!with!heavy!emphasis!on!local!community!and!placeDmaking! ! Keep!people!in!their!communities,!connected!to!family!and!local!organizations! ! Be!engines!of!growth!for!local!economic!development! ! Blend!highDtech!with!the!personal:!the!‘internet!world’!needs!faceDtoDface! communications!now!more!than!ever! ! Remain!a!socialDpurpose!venture!and!operate!on!solid!business!principles! ! Minimize!risk!for!investors! ! If!successful,!consider!replicability!and!scalability!beyond!GTHA! !

1.3. The Increasing Costs of Congestion as a Tipping Point to Mass Telecommuting ! Countless!business!strategy!reports!point!to!a!changing!workplace!reality!in!this!age!of! mobile!communications!technology.!A!recent!such!report!published!by!the!enterprise! technology!developer!Citrix,!entitled!“The!Future!of!Work!is!Now”,!sums!up!this!changing! world!by!suggesting!that:!“There!is!a!change!in!mindset!from!employees!of!the!past!who! believe!that!work!is!a!place!to!go….![Modern!employees]!don’t!have!to!work!in!a!structured!9! to!5!job!from!a!cubicle!or!even!from!a!desk.!Work!is!no!longer!a!physical!location!that!we! need!to!go!to.”!! ! And!while!many!premature!announcements!claiming!the!arrival!of!the!telecommuting!have! been!made!since!the!invention!of!the!personal!computer,!the!situation!of!regional!gridlock! and!record!commute!times!in!the!GTHA!is!placing!our!region!in!a!unique!position!where! mass!telecommuting!might!be!required!as!part!of!the!strategy!to!combat!the!social,!economic! and!environmental!problems!brought!on!by!increased!traffic!strain!across!the!region.! ! !Congestion!is!indisputably!one!of!the!single!largest!threats!to!our!region’s!competitiveness! and!is!an!issue!that!requires!both!infrastructural!improvements!as!well!as!behavioral! changes.!A!2012!study!conducted!by!the!Toronto!Board!of!Trade!estimated!that!congestion! cost!the!GTHA!economy!$6B!in!2006!with!projections!toping!$30B!per!year!by!2031!if!the! region!continues!to!grow!without!investment!in!necessary!infrastructure!improvements! (see:!Toronto!Board!of!Trade,!“The!Move!Ahead:!Funding!‘The!Big!Move’”,!2012).!! ! Meanwhile,!the!economic!costs!of!congestion!are!only!part!of!the!story.!Social!and!health! impacts!brought!on!by!exceedingly!long!commute!times!are!well!documented.!Family!income! earners!who!cannot!afford!the!price!of!real!estate!close!to!their!place!of!employment!have!

Centre!for!Social!Innovation!

! little!options!but!to!endure!the!social!and!health!impacts!brought!on!by!long!commutes,! diminishing!their!opportunity!to!contribute!to!family!and!community!activities.! ! Concurrently,!advances!in!mobile!communications!technology!(and!associated!widespread! adoption!rates!within!mainstream!business)!present!new!opportunities!for!employees!to! “free”!themselves!from!fixed!and!farDflung!office!locations.!! ! It!is!clearly!understood!that!improvements!to!our!region’s!transportation!system!–!especially! the!highDorder!public!transportation!network!–!are!urgently!needed!to!enable!the!region’s! economy!to!continue!to!thrive.!However,!it!is!also!our!position!that!it!is!important!to! consider!behavioral!changes!around!how!and!why!we!take!the!many!autoDbased!trips!that!we! do!in!our!daily!lives.!Behavior!is!an!easier!problem!to!tackle!than!agreeing!on!how!to!finance! and!commission!major!generational!infrastructure!projects!and!as!such,!platforms!such!as! this!one!should!be!carefully!considered!while!we!debate!multiDbillion!dollar!‘built’!solutions.!! ! The!service!offering!that!we!are!testing!in!this!feasibility!study!will!run!concurrent!with! infrastructural!improvements,!and!we!are!motivated!by!the!same!set!of!problems!brought!on! by!congestion.!However,!by!comparison!to!major!spending!in!infrastructure,!our!approach!is! several!degrees!more!affordable,!easier!and!quicker!to!execute,!while!maintaining!significant! local!community!transformation.!

1.4. Project Focus: Place-making in Suburban Centres ! Our!focus!for!this!project!is!to!examine!the!possibilities!of!locating!sharedDwork!facilities!in! existing!or!developing!suburban!centres.!The!development!momentum!that!we!see!in! various!suburban!municipalities,!from!Vaughan!to!Markham!to!Mississauga!City!Centre!and! others,!is!strong!and!is!pushing!toward!creating!very!urban!identities!for!these!areas,! including!new!‘downtowns’!and!‘central!business!districts’.!Taken!together,!these! development!projects!suggest!a!regionDwide!reshaping!of!the!typical!suburban!landscape,! and!invite!new!ideas!and!solutions.!! ! One!common!aspect!of!all!the!suburban!growth!projects!is!that!they!are!all!focused!on!places! where!various!modes!of!transportation!connect.!The!places!of!growth!are!happening!where! highways,!regional!commuter!trains,!local!transit!services,!bike!paths,!and!so!on!all!meet,! allowing!future!generations!to!move!through!the!region!more!easily.!! ! The!attraction!for!sharedDworkspaces!to!locate!at!these!interchange!locations!is!logical.! Locating!here!would!mean!that!these!are!the!bestDconnected!places!in!the!region:!settings!of! future!growth!and!density.!The!Mobility!Hubs!of!the!future!will!be!places!that!are!easy!to!get! to!(and!close!to!residential!density)!and!easy!to!move!about!the!region!from,!when!the!need! arises.! ! We!feel!that!as!the!region!continues!to!grow,!suburban!centres!will!gain!increasingly! important!roles!and!we!envision!the!Workspace!Hubs!project!to!be!tightly!integrated!with! the!growing!culture!and!community!of!these!locations.!!

1.5. Target Audiences ! Each!Workspace!Hub!would!be!designed!for!local!users,!including!a!mix!of!entrepreneurs,! small!business!startDups,!creators!and!mobile!professionals!who!might!otherwise!be!facing! long!commute!times.! ! We!would!target!spaces!in!the!primary!or!secondary!zones!of!each!Mobility!Hub!catchment! area!(+/D!500m!or!an!approximate!5!min!walk!to!transit!connection),!ensuring!access!to!the!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 3!

Section!One!!Introduction:!Background!&!Context!

highest!number!of!people!possible.!Each!Workplace!Hub!will!feature!professional,!creative,! innovative!and!collaborative!workspaces!that!we!expect!will!appeal!to!a!range!of!potential! users.!! ! By!creating!inspiring,!local!workspaces,!fully!outfitted!with!the!best!in!telecommunications! and!office!facilities!mixed!with!the!magic!of!community!and!creativity,!we!believe!that!we! can!enrich!the!quality!of!life!for!employees!and!unleash!the!potential!of!innovation.! ! In!addition!to!individual!users,!we!would!expect!to!market!the!space!to!large!and!midDsized! employers!who!could!benefit!from!having!a!network!of!remote!office!locations!for!select! members!of!their!teams!to!work!out!of,!while!reducing!their!head!office!real!estate!burden.! Already!we!are!seeing!a!trend!among!large!enterprise!employers!to!convert!office!space!from! dedicated!workstations!to!flexible!hoteling!systems,!a!change!that!indicates!a!new! willingness!for!flexible!and/or!remote!work.!We!feel!that!this!offering!fits!very!comfortably! with!this!emerging!sector.! ! We!believe!that!this!dynamic!mix!of!people!will!more!than!simply!reduce!stress!on!existing! transit!and!offer!superior!land!use,!rather!it!will!also!be!able!to!lean!into!and!harness!the! diversity!and!richness!of!these!communities!through!aggregating!the!social!capital!of!the! individual!neighbourhoods.!We!believe!that!we!can!create!community!and!inspire! collaboration!with!the!right!approach.!!

1.6. Social & Environmental Impact ! Among!the!very!central!forces!pushing!the!Workspace!Hubs!project,!is!the!essential!need!to! create!a!lower!carbon!economy.!Transportation!in!Ontario!is!a!major!contributor!to!the! emissions!of!Greenhouse!Gases!and!Criteria!Air!Contaminants!that!are!proven!to!have!drastic! health!and!environmental!impacts.!Reducing!the!number!of!unnecessary!trips!made!in! singleDoccupancy!vehicles!is!a!nearDterm!target!that!we!wish!to!stress!with!this!project.! ! Rapid!advances!in!technology!have!greatly!enhanced!our!ability!to!work!from!a! decentralized!location,!yet!our!region!continues!to!fight!with!roadway!congestion,!ranking! Toronto!as!one!of!the!worst!places!for!congestion!in!the!world.!Furthermore,!vehicular! congestion!threatens!both!our!environment!and!society.!The!environmental!and!social! benefit!of!our!Workspace!Hubs!project!form!the!pillars!of!our!conceptual!approach.!! ! We!believe!that!by!opening!a!regional!network!of!Workspace!Hubs!we!can:! ! ! Reduce!travel!by!car,!thus!reducing!GHG!emissions!and!gridlock! ! Build!local!social!capital,!thus!fostering!economic!development!and!citizen!engagement! ! Reduce!travelling!time!thus!improving!workDlife!balance!and!individual!happiness!

1.7. Associated Trends 1.7.1. The Future of Work ! â&#x20AC;&#x153;There'are'forces'at'work'that'over'the'coming'decades'will'destroy'forever'many'of'the'old' assumptions'of'a'traditional'job'and'career.'Around'the'world,'outdated'hierarchies'will' crumble;'notions'of'905'working'will'come'under'immense'pressure;'and'those'who'in'the'past' would'have'been'disadvantaged'will'have'the'opportunity'to'join'the'global'talent'poolâ&#x20AC;?.'' D !

The'Shift:'The'Future'of'Work'is'Already'Here,!Lynda!Gratton!(2011).!

Centre!for!Social!Innovation!

! Macro!forces!around!the!future!of!office!work!seep!through!this!feasibility!study!in!many! ways,!in!particular!around!the!innovative!use!of!communications!technology!in!the! workplace.!As!our!economy!develops!deeper!and!deeper!into!a!knowledgeDbased!world,! changes!to!the!way!that!work!is!performed!and!managed!are!expected!to!continue.! Employees!across!all!sectors!are!beginning!to!work!remotely,!either!occasionally!or!through! programmatic!policy!initiatives!lead!by!their!employer,!many!of!whom!are!recognizing!the! potential!real!estate!savings!available!to!them!by!decreasing!the!leased!foot!print!of!their! headquarters.! ! And!beyond!the!changes!in!employeeDemployer!management!relationships!within!large! enterprise!corporations,!there!is!an!emerging!sector!of!our!economy!that!is!made!up!of!soD called!‘microDenterprises’:!companies!with!three!or!fewer!employees.!Attributed!in!part!to! the!fallDout!of!the!2008/09!global!recession!–!which!saw!spikes!in!layoffs!across!virtually!all! sectors!–!many!more!people!are!drawn!to!selfDmanaged!enterprises!than!ever!before!and!the! availability!of!professional!software!has!enabled!a!boom!of!startDup!enterprises!across!our! region.! !! These!changes!carried!out!en'masse!have!the!potential!to!transform!the!suburbanDcity! dichotomy,!conceivably!converting!previous!bedroom!communities!into!areas!fertile!with! knowledgeDbased!workers.!!

1.7.2. Social Entrepreneurship & Innovation ! “[Social'entrepreneurship]'is'one'of'the'most'hopeful'and'helpful'trends'around.'These'folks' aren’t'famous,'but'they'are'showing'that'what'it'really'takes'to'change'the'world'isn’t'so'much' wealth'or'power,'but'creativity,'determination'and'passion.”'' D Nicholas!Kristof,!Pulitzer!Prize!Winning!Columnist,!The'New'York'Times! ! Entrepreneurship!is!moving!into!the!mainstream!and!the!Workspace!Hubs!project!will!look! to!lead!the!way!by!establishing!focal!points!for!the!social!leaders!in!all!the!respective! communities.!

1.7.3. Growth of Coworking ! Coworking!is!still!a!relatively!new!idea!that!is!growing!in!popularity.!Originally!starting!out! in!apartments!and!libraries!where!telecommuters!gathered!to!socialize!and!boost!creativity,! the!practice!has!grown!into!a!marketplace!with!diverse!providers!such!as!the!Hub!(locations! across!Europe,!Canada!and!the!US),!CoCo!(Minneapolis/St.!Paul),!Rocket!Space!(San! Francisco)!and!Sandbox!Suites!(Bay!Area).!!Independent!coworking!spaces!are!popping!up! everywhere.! Worldwide,!there!are!roughly!2,000+!of!these!shared!workplaces!(with!approximately! 80,000!people!working!in!them)!according!to!Deskmag,!a!BerlinDbased!magazine!focused!on! the!coworking!sector.!Coworking!offers!another!alternative!for!workers!as!flexible!and! mobile!ways!of!working!are!becoming!more!common.!!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 5!

Section!One!!Introduction:!Background!&!Context!

1.8. Comparable Examples ! While!we!do!not!feel!that!there!is!a!precise!comparator!to!what!we!are!proposing,!it!is! helpful!nonetheless!to!examine!the!marketplace!to!see!what!competitive!services!are!also! available!to!the!consumer.!!

! Business! Centres!(Regus)! ! Target! customers!

Location!

Revenue! Sources!

#!across!the! GTA!today!

Coworking! Organizations! Across!the! GTA! Freelancers,! entrepreneurs,! startDups!

Rural! TeleCentres!

Public!Spaces!

Workspace!Hubs!

Commuting! employees,!coD workers!

Mobile! employees!

Freelancers,!social! entrepreneurs,! startDups,!large! companies,!others!

MegaD urban/Rural!

Rural!

Public!space!

MegaD urban/Urban!

Downtown! Business! Districts!

Residential! Areas!

Residential!Areas!

Airports,!train! stations,!coffee! shops,!libraries!

D!space!rental! D!payDasDyouDuse! D!subscription!

D!space!rental! D!pay!asDyouD use! D!subscription! D!subsidies! D!events! Roughly!20!

D!space!rental! D!subscription! D!subsidies!

D!N/A!

Emerging!

Grows!with! wifi!

ResidentialD Transportation! closeDby!(20! minutes!max!from! home)! D!services!platform! D!office!and!desk! rental! D!payDasDyouDuse! D!grants! Devents! Vision!for!6D10!

Executives,! corporate!and! business! employees!(eg:! real!estate! agenciesâ&#x20AC;Ś)! MegaDurban!

19!

1.9. Background: About the Centre for Social Innovation ! The!Centre!for!Social!Innovation!(CSI)!is!a!social!enterprise!with!a!mission!to!catalyze,! connect!and!support!new!ideas!that!make!positive!change!in!the!world.!It!currently!operates! 94,000!square!feet!in!three!locations!in!Toronto!and!one!in!New!York!City.!CSI!is!home!to! over!600!organizations!that!are!working!to!meet!the!needs!of!communities!across!the!city! and!around!the!world. By!providing!access!to!shared!space!and!services,!community!programming,!social!venture! support!and!a!positive!work!atmosphere,!CSI!enables!these!organizations!to!increase!their! efficiency!and!achieve!greater!social!impact.!With!more!than!20,000!people!coming!through! the!Centre!annually,!CSI!is!a!recognized!leader!in!animating!diverse!audiences,!encouraging! collaboration,!and!fostering!social!change. Theory!of!Change! The!Centreâ&#x20AC;&#x2122;s!success!is!rooted!in!its!Theory!of!Change.!This!Theory!places!three!core! elements!in!hierarchical!order:!space,!community!and!innovation.!CSI!starts!by!consciously! creating!a!physical!space!that!is!functional,!whimsical,!inviting!and!energizing.!Next,!CSI! focus!on!the!community.!What!begins!as!a!group!of!people!looking!for!a!place!to!work! becomes!a!community!through!conscious!and!careful!animation.!These!layers!form!the!basis! for!innovation,!with!the!right!values!and!the!right!environment!DDD!voila!!DDD!you!have!a! platform!on!which!to!catalyze!and!spark!social!innovation.!Just!add!a!little!intentionality!and!

Centre!for!Social!Innovation!

! some!values!(entrepreneurship,!collaboration!and!diversity)!and!you!are!on!your!way.!The! results!are!unpredictable!and!often!astonishing.! CSI!Core!I!Collocation!Model! Currently,!CSI!operates!94,000!square!feet!of!space!that!includes!140!private!offices,!160! permanent!desks,!and!a!community!of!“Hot!Desk”!members.!The!appeal!of!the!CSI!model!is! simple:!together,!the!members!can!achieve!more!than!any!single!organization!can!do!on!its! own.!By!pooling!resources,!tenants!are!able!to!access!office!amenities!–!such!as!boardrooms,! kitchen!facilities,!Internet,!photocopiers,!fax!machine,!and!audioDvisual!equipment!–!that!are! otherwise!out!of!reach.!The!Centre!for!Social!Innovation!orchestrates!this!collaboration!and! animates!the!space!with!its!own!programming!and!initiatives!in!support!of!its!members. The!CSI!business!model!is!straightforward.!There!are!three!types!of!tenancy: !

Private!Office!Space:!Private!offices!are!lockable!spaces!that!belong!to!a!single! organization!or!individual!and!cannot!be!accessed!by!others.!

Permanent!Desk!Space:!Permanent!desks!are!private!desk!spaces!in!an!open! environment,!but!which!belong!to!one!individual!and!cannot!be!accessed!by!others.!

Hot!Desks:!Hot!desks!are!shared!desks!in!a!common!area!that!are!accessible!to!members! based!on!packages!of!5,!20,!60,!or!100!hours!per!month.!

This!mix!of!tenancy!types!is!unique!to!the!Centre!for!Social!Innovation,!and!is!based!on!CSI’s! belief!that!different!people!and!projects!have!different!workspace!needs.!This!model! accommodates!a!variety!of!different!groups!and!organizational!types.!The!private!office! space!tenants!often!bring!elements!of!stability!and!experience!that!permanent!desk!and! temporary!desk!tenants!don’t!have.!The!permanent!desk!and!hot!desk!tenants!bring!a!high! level!of!energy!and!a!strong!willingness!to!collaborate.!By!providing!a!variety!of!options!for! members!CSI!serves!the!needs!of!the!widest!possible!array!of!organizations!and!individuals.!

1.9.1. Background: Knowledge and Experience ! Our!successes!in!space!design,!community!animation,!and!dayDtoDday!facility!operations!have! made!us!global!leaders!in!the!field.!Below!is!a!review!of!some!of!the!assets!CSI!brings!to!the! table:! ! Space!Design! Space!is!never!neutral.!The!construction!and!design!of!a!space!has!a!psychology!and!social! impact;!it!facilitates!certain!behaviors!and!feelings!and!it!proscribes!others.!This!basic!insight! is!critical!to!space!design.!The!Centre!for!Social!Innovation!makes!best!possible!use!of!this! insight!and!has!refined!the!practice!of!work!space!design!over!the!past!eight!years.!We’ve! learned!how!to!best!design!healthy!workspaces!that!serve!our!goals:!to!foster!productivity,! to!facilitate!collaboration,!to!build!social!capital!and!to!spark!creativity.! Community!Animation! A!community!can!be!left!to!its!own!devices,!where!relationships!and!practices!will!evolve! over!time.!But!the!practice!of!building!community!–!and!the!practices!of!animating! community!–!can!also!be!consciously!performed.!CSI!has!elevated!the!practice!of!community! building!to!its!own!profession!within!shared!workspaces.!Our!Community!Animators!pursue!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 7!

Section!One!!Introduction:!Background!&!Context!

the!explicit!goals!of!fostering!connectivity,!maintaining!and!building!community!spirit,!and! actively!curating!the!social,!psychological,!and!physical!environment.!Community!Animation! is!central!to!the!work!of!CSI,!and!at!the!root!of!turning!a!shared!workspace!into!a!dynamic! community.! Facility!Operations! CSI!has!significant!experience!managing!dynamic!community!shared!workspaces!and!events.! This!covers!the!entire!gamut!of!facilities!management.!Our!experience!includes: ! ! ! ! ! ! ! !

creating!and!managing!leasing!agreements!! maintaining!tenant!relationships!and!internal!communications!! rent!payments!and!collections!! space!design!and!interior!design!! thirdDparty!service!liaison!and!oversight!(e.g.,!plumbing,!electrical,!cleaning,!security,! etc.)!! human!resources!management!! event!and!program!planning!and!management!! dayDtoDday!administration!

Reputation!for!Excellence!and!Innovation Since!first!opening!our!doors!the!Centre!for!Social!Innovation!has!been!determined!to!prove! that!excellence!and!innovation!are!possible!in!a!nonprofit!organization.!We!have!striven!to! exceed!the!expectations!of!our!funders,!supporters,!members,!and!the!broader!community,! developing!a!reputation!for!excellence!and!innovation.!We!believe!we!have!achieved!this! goal,!and!have!created!an!organization!that!is!recognized!for!its!vital!mix!of!creativity!and! professionalism. Incubated!Project!Management In!addition!to!running!a!successful!shared!space!facility,!CSI!staff!have!been!acting!as!venture! capitalist!for!social!change.!Providing!the!trusteeship,!book!keeping,!coaching,!management! oversight,!fundraising!and!whatever!other!supports!were!necessary!to!ensure!the!success!of! the!project,!CSI!has!been!home!to!over!a!dozen!successful!social!ventures!which!reflect!our! values!of!collaboration,!entrepreneurship!and!systems!change. Recognition! The!Centre!for!Social!Innovation!has!been!recognized!by!the!local,!national!and!international! community!for!its!accomplishments.! ! ! ! ! ! ! !

In!2013,!CSI!was!recognized!by!the!Social!Finance!Awards!for!its!excellence!in! collaborative!solutions! In!2010!Tonya!Surman!was!named!a!Global!Ashoka!Fellow:!a!Global!Network!of!Social! Entrepreneurs.! In!2009!Tonya!Surman!received!a!Leaders!in!Social!Change!Award!from!the!Canadian! New!Media!Awards!for!her!work!at!CSI.! In!2009!CSI!received!the!Canadian!Urban!Institute!Award!for!City!Innovation.!! In!2008!CSI!won!the!Messenger!Award!from!AWAY!Express!for!its!work!supporting! social!enterprise.!! In!2008!CSI!was!best!Social!Enterprise!by!NOW!Magazine!! In!2007:!CSI!won!the!Toronto!Community!Foundation!Vital!Idea!Award.!!

Centre!for!Social!Innovation!

2. MARKET RESEARCH FINDINGS ! Successfully!executing!a!broad!vision!such!as!this!depends!on!several!related!(but!distinct)! factors!liningDup,!creating!the!conditions!for!success!venture.!Our!market!research!therefore! extends!in!several!directions.!! ! From!the!perspective!of!regional!development,!we!need!to!see!verified!indications!that!the!land! around!suburban!transit!nodes!will!in!fact!be!redesigned!in!a!way!that!would!support! meaningful,!mixedDuse!density.!Employment!uses!are!an!essential!part!of!this!mix:!a!way!of! ensuring!that!these!areas!will!become!fertile!economic!centres!and!not!simply!reconfigured! bedroom!communities.!We!don’t!intend!to!open!a!location!in!a!development!vacuum,!but!rather! as!a!key!component!to!a!cluster!of!complimentary!uses.! ! Sufficient!demand!for!the!service!must!also!be!identified.!Our!fully!articulated!model!creates! workspaces!for!nineteen!hundred!innovators,!entrepreneurs!and!knowledge!workers!across!the! region!(in!a!mix!of!permanent!and!‘hot!desk’!packages).!We!feel!that!the!movement!toward! entrepreneurial!enterprise!has!never!been!stronger!in!our!region!than!it!is!today!–!Toronto!! recently!ranked!fourth!globally!(2012)!for!top!startDup!ecosystem!by!an!innovative! benchmarking!system!named!StartDup!Compass!–!and!that!these!dynamics!are!not!limited!to!an! environment!such!as!downtown!Toronto!alone.!Coworking!centres!around!the!world!are! thriving,!and!we!must!take!a!close!look!at!trends!and!developments.!!! ! Crucially,!we!are!predicating!the!success!of!this!project!on!additional!demand!from!whiteDcollar! knowledge!workers!who!are!looking!for!an!alternative!to!commuting.!Investigating!the!regional! pressure!points!around!commute!times!is!an!essential!component!of!our!study.! ! Related!to!the!importance!of!enterprise!business!commuters!as!part!of!the!Workspace!Hub! community,!understanding!the!mood!of!large!corporate!employers!and!they!are!willing!and/or! prepared!to!allow!and!more!importantly!enable!(and!possibly!pay!for)!their!employees!to!work! our!of!a!Workspace!Hub!is!a!crucial!aspect!of!our!market!research.!

2.1. Important Regional Factors ! The!commercial!office!market!in!the!GTHA!will!continue!to!grow.!Based!on!population! growth!estimates!for!the!GTHA,!along!with!continued!redefining!of!our!labour!market! (toward!a!greater!concentration!of!“knowledge”!workers)!the!Canadian!Urban!Institute! expects!that!our!region!will!require!an!additional!100million!square!feet!of!new!office!space! to!be!built!to!accommodate!future!populations!(Canadian!Urban!Institute,!Strategic'Regional' Research:'A'Region'in'Transition,!January!2013).! ! For!a!healthy!region,!more!jobs!need!to!locate!in!the!suburbs.!Finding!places!for!these! new!jobs!to!locate!is!a!challenge!as!our!region!continues!to!grow,!meanwhile!congestion!is! crippling!the!905!regions:!“[Severe!suburban!congestion]!could!be!interpreted!as!the!tipping! point!where!coDordinated!policy!balancing!and!integrating!the!impact!of!all!three!policy!tools! in!the!Region,!planning,!transit!and!economic!development,!could!prove!to!be!vital”!the! report!explains!(Canadian!Urban!Institute,!Strategic'Regional'Research:'A'Region'in' Transition,!January!2013).!Our!region!needs!to!continue!growing!its!suburban!centres!in! order!to!have!a!strong!urban!economy.! ! Office!space!at!transit!nodes!is!presently!underdeveloped.!Much!of!the!existing!office! space!in!the!suburbs!is!located!in!autoDdependent!‘office!parks’:!commercial!land!that!was! conceived!as!industrial!land!that!has!migrated!to!administrative!office!use.!The!glut!of!office!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 9!

Section!Two!!Market!Research!Summary!

space!in!these!amenityDlacking!areas!poses!a!considerable!strain!on!transportation! infrastructure!and!is!a!major!contributor!to!suburban!congestion.!! ! Mobility!Hubs!serve!as!competitive!advantage!in!new!economy.!Office!areas!located! within!the!Mobility!Hub!network!will!be!at!a!competitive!advantage!when!compared!to! typical!suburban!office!space!and!in!many!ways!will!provide!a!new!product!to!the!market! place,!stressing!accessibility!through!active!transportation!(walking,!bicycling)!and!ready! connectivity!to!regional!and!local!public!transportation!systems.! !

! ! ! !

! Office!Concentrations:!The!map!above!highlights!concentrations!of!office!building!supply! against!the!distribution!of!Urban!Growth!Centres!(UGCs),!underscoring!the!growth!potential! around!UGCs.!

The!Places'to'Grow!Act!is!working.!A!transportation!network!is!only!as!good!as!the!land! use!decisions!related!to!the!land!throughout!the!network!and!in!our!province,!land!use! decisions!are!made!at!the!municipal!level.!The!provincial!government’s!Place'To'Grow!Act! (2006)!was!designed!as!a!framework!for!municipalities!to!follow!that!would!achieve!new! density!and!mixedDuse!targets!around!future!transportation!hubs.!The!impact!of!these! decisions!are!sometimes!generational!in!the!time!required!to!mature,!but!in!almost!uniform! fashion,!the!municipalities!across!the!GTHA!–!Vaughan,!Richmond!Hill,!Mississaua,!Markham! and!Pickering!as!examples!–!are!committed!and!fully!engaged!in!the!transformation!of!these! lands.!While!the!financing!and!timing!of!some!of!the!transportation!infrastructure!is!under! review,!the!land!use!changes!are!already!underway.!

2.2. Global Coworking Trends (contributed by Cisco’s IBSG)

! Opportunities! ! Macro!and!micro!trends!support!coworking!(and!its!growth)!generally.!Coworking! has!potential!beyond!its!immediate!benefits!(e.g.!role!in!job!creation!and!economic!growth,! if!orchestrated!properly).! Coworking!and!mobile!offices!represent!a!new!work!model.!The!coworking!model!fits! with!progressive!aspirations!for!a!sustainable,!innovative!future.!

10! !

Centre!for!Social!Innovation!

! ! Demand!is!set!to!increase.!Coworking!demand!should!increase!in!Canada!as!telework! takes!hold!in!government!and!across!the!private!sector.!The!government!of!Australia,!for! example,!just!raised!its!telework!targets!to!20%!by!2020.!! ! Satisfaction!rates!continue!to!be!high.!Overall!satisfaction!rates!with!coworking! organizations!remain!high!at!over!80%,!with!low!turnover!generally.! ! Success!rates!for!privatelyIrun!coworking!spaces!is!high.!Roughly!72%!of!coworking! spaces!become!profitable!after!2!years.!For!privatelyDrun!coworking!spaces!the! profitability!rate!after!more!than!two!years!is!even!higher,!at!87%!(source:'deskmag)! ! Threats! ! Coworking!across!the!globe!is!made!up!of!“small!pieces,!loosely!joined”.!According!to! Deskmag’s!3rd!Global!Coworking!Survey,!80%!of!coworking!spaces!do!not!belong!to!a! network!of!coworking!spaces.!Only!5%!are!in!a!franchise,!6%!are!part!of!an!association,! and!10%!are!in!a!network!of!spaces!(source:'Deskmag)! ! LargeIscale!competition!for!coworkers!across!the!GTA!is!likely!to!increase.!Including! increased!competition!from!incumbent!players!like!Regus!(e.g.!Regus!Purple!is!aimed!at!the! coworking!and!distributed!work!market).! ! Coworking!remains!a!‘place’!first!model.!If!a!better!“place”!is!made!available,!are!you! able!to!maintain!your!community!of!coworkers?! ! Limited!corporate!takeIup!of!coworking.!To!date,!the!corporate!enterprise!community! has!been!slow!to!enable!employees!to!work!out!of!coworking!facilities.!

2.3. GTHA Commuter Profiles (from Smart Commute/Metrolinx & Pembina Institute)

! The'following'research'data'originally'appeared'in:'' “Commuter'Attitudes'Survey'2011:'Report'Prepared'for'Smart'Commute”'' (Ipsos'for'Metrolinx,'2011)' ! Satisfaction!with!commuting!is!at!an!“allItime!low”.!According!to!the!latest!Commuter! Attitudes!Survey!(2011)!completed!by!Ipsos!Reid!for!Smart!Commute/Metrolinx,!the! average!commute!time!is!rising!(up!to!36.4!minutes!one!way!in!2011)!and!those! commuters!all!across!the!region!are!understandably!frustrated.!The!average!commuter! presently!commutes!to!work!4.5!days!per!week.! ! Commuting!in!the!GTHA!is!no!longer!a!oneIway!experience.!While!it!once!might!have! been!the!case!that!the!majority!of!commuting!trips!in!the!GTHA!originated!in!the!suburbs,! traveled!into!Toronto!and!returned!to!the!suburbs!at!day’s!end,!this!no!longer!represents! the!commuting!patterns!in!the!GTHA.!The!soDcalled!reverse0commute!has!been!on!the! increase,!as!have!suburbDtoDsuburb!commuting!patterns.! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 11!

Section!Two!!Market!Research!Summary!

Commuters!who!begin!their!trip!in!Durham!face!the!longest!commutes,!those!in! Hamilton!the!shortest.!According!to!the!latest!Commuter!Attitudes!Survey:! ! Average!Commute!in! 2005! 2008! 2011! Minutes! GTHA! 34.6! 34.6! 36.4!

! Avg.!Commute!of!those!who! live!in:! Toronto! York! Durham! Peel! Halton! Hamilton!

2005!

2008!

2011!

33.2! 35.4! 42.8! 37.4! 38.4! 31.2!

37.1! 36.7! 34.2! 29.4! 34.9! 29.8!

36.4! 38.6! 39.9! 36.9! 34.4! 29.6!

! Teleworking!is!on!the!rise.!The!number!of!GTHA!commuters!who!identified!themselves! as!teleworkers!–!office!based!employees!who!work!from!home!a!minimum!of!three!days! per!week!–!grew!60%!between!2008!&!2011!(but!still!only!made!up!8%!of!total!commuters! surveyed!in!the!Commuters!Attitudes!Survey).!! ! Teleworkers!in!Peel!are!most!committed!to!working!remotely.!Teleworking!by!region,! a!summary!that!shows!both!high!numbers!and!strong!growth!of!teleworking!in!Peel! Region,!while!Halton!and!Durham!lag!behind:! ! Mean!number!of! 2005! 2008! 2011! days/month!spend! teleworking! Total! 14.3! 19.7! 20.3! Toronto! 14.2! 16.0! 18.9! York! 25.0! 21.0! 21.8! Durham! D! 15.0! 16.7! Peel! 11.0! 21.5! 25.9! Halton! D! D! 15.4! Hamilton! D! 21.0! 18.2! ! One!quarter!of!teleworkers!use!equipment!subsidized!by!their!employer.!24%!of! teleworkers!state!that!their!employer!supplies!equipment!for!the!facilitation!of! teleworking,!down!from!29%!of!employers!in!2008.!! ! The'following'research'data'originally'appeared'in:''' “Drivers'Choice:'Options'to'manage'gridlock'and'fund'rapid'transit'in'the'GTA”' (Pembina'Institute,'2012)' ! There!is!strong!interest!in!teleworking!throughout!the!GTHA.!94%!of!respondents!to! Pembina!Institute!survey!stated!that!they!would!be!interested!in!permanent! telecommuting!if!offered!by!their!employer.! Some!degree!of!telecommuting!is!presently!available!to!most!commuters.!Currently! 69%!of!those!surveyed!have!jobs!flexible!enough!to!allow!for!occasional!telecommuting,! with!43%!of!drivers!taking!advantage!of!occasional!telecommuting.!25%!of!respondents!do! so!once!a!week!or!more,!20%!a!few!times!a!month!and!23%!at!least!once!a!month.!

12! !

Centre!for!Social!Innovation!

! Commuting!interferes!with!quality!of!life.!TwoDthirds!of!respondents!say!commuting! takes!away!from!quality!of!life!in!terms!of!family!and!personal!time.!!

2.4. Corporate Readiness ! Over!the!course!of!this!study,!we!held!many!informational!interviews!with!senior! management!officials!from!major!employers!in!the!GTA,!covering!a!diverse!range!of!sectors! (including!financial!services,!legal/administrative,!IT!consulting!and!telecommunications)! to!gauge!how!corporate!Toronto!might!or!might!not!embrace!the!concept!of!allowing!their! employees!to!use!a!coworking!service.!We!discussed!a!series!of!topics!with!each! interviewee,!ranging!from!mobility!policies,!the!use!of!technology!in!the!workplace,!real! estate!objectives!and!strategies,!environmental!incentive!programs!and!ultimately!the! usefulness!of!a!sharedDwork!service.! ! In!several!cases!we!were!given!access!to!their!corporate!office!space!to!see!firstDhand!the! policies!in!action,!access!that!we!very!sincerely!appreciated.!In!a!handful!of!cases,!the! interviewees!asked!that!we!not!name!their!company!by!name!in!our!report,!so!as!not!to! give!away!any!operational!advantage!they!perceive!to!hold,!a!courtesy!we!chose!to!extend! to!all!who!assisted!us!with!the!information!gathering.!! ! Office!Culture! ! Corporate!offices!are!becoming!more!flexible!with!their!space!than!ever.!The! standard!corporate!office!template!that!featured!senior!management!personnel! monopolizing!the!window!offices!with!support!staff!lining!the!interior,!appears!to!be!a! thing!of!the!past!in!the!new!office!designs!in!large!corporate!offices.!Office!space!is!being! designed!more!and!more!to!have!flexible!functions,!with!more!and!more!breakout!and! team!collaboration!space!taking!the!place!of!the!reduction!in!private!offices.!! ! HotIdesking!and!hoteling!stations!are!commonplace!(but!not!yet!the!norm).!In! varying!degrees,!hoteling!stations!are!becoming!more!and!more!commonplace!in! commercial!office!settings.!In!particular!in!the!consulting!industry!â&#x20AC;&#x201C;!but!also!in!the! financial!services!and!telecommunications!sectors!â&#x20AC;&#x201C;!employees!are!required!to!use!a! reservations!system!to!book!a!place!to!work!for!the!day.!Often!the!employers!allow!their! workers!to!book!in!for!up!to!a!week!at!a!time.!When!they!arrive!at!their!workplace,!at!their! desk!they!sign!in!to!a!telecomm!hardware!device!that!routes!their!office!phone!line!locally! and!allows!for!necessary!network!access!protocols!to!be!enabled.!While!some!highDtech! companies!are!entirely!converted!to!this!type!of!system,!others!are!testing!with!certain! divisions!and!teams!to!see!how!widely!it!can!be!applied.! ! Mobile!Policy! ! Remote!work!polices!are!largely!in!betaItesting!phase.!Large!employers!are!only! recently!experimenting!with!articulated!policies!around!working!offDsite!and!few! companies!have!full!companyDwide!policies!in!place.!There!is!a!good!deal!of!trepidation! (often!tied!to!concerns!about!losing!control!of!office!culture!and!fear!of!reduced! productivity)!around!completely!allowing!employees!to!work!where!they!chose,!and!so! many!companies!are!testing!policies!with!certain!divisions!whom!they!feel!could!best! handle!the!changes.!Some!companies!with!regional!offices!are!enabling!their!employees!to! work!out!of!various!offices.!! ! Some!sectors!will!always!be!placedIbased.!Perhaps!without!surprise,!the!major!legal! services!providers!who!we!interviewed!disclosed!that!there!was!little!benefit!for!them!to! enable!their!partners!and!associates!to!work!remotely.!Often!their!workload!involves!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 13!

Section!Two!!Market!Research!Summary!

servicing!clients!who!are!also!located!nearby!and!their!involvement!can!be!ongoing!in! nature,!requiring!a!physical!location.!This!does!not!however!mean!that!smaller! independent!causeDbased!legal!counsel!could!not!be!attracted!to!work!at!a!Workspace!Hub! location;!in!fact!the!fit!could!be!entirely!suitable.! Tools! ! “Virtual!presence”!software!is!enabling!managers!to!monitor!offIsite!employees.! Several!organizations!report!the!recent!adoption!of!new!software!tools!that!enable! managers!to!oversee!employees!working!offDsite.!Among!the!most!popular!tools!used!by! responding!organizations!is!Microsoft!Office!Communicator,!which!features!instant! messaging!and!voice!over!Internet!Protocol!(VoIP)!services.!A!key!aspect!of!the! Communicator!software,!which!was!repeated!many!times,!is!the!‘presence’!information! aspect!of!the!tool:!if!a!workplace!instills!a!policy!whereby!all!their!team!members!must!use! Communicator!regardless!of!their!physical!location,!a!supervisor!or!team!leader!can!see! who!among!their!team!is!‘present’!and!online!at!any!given!time.!This!tool!appears!to!be!a! popular!choice!throughout!organizations!that!are!adapting!to!management!policies!for!offD site!employees!and!seems!to!be!a!virtual!replacement!for!visual!management!verification.! ! Teleprescence!technology!is!rapidly!increasing!in!importance.!Virtual!meetings! conducted!via!webcam!with!people!in!various!locations!are!fast!becoming!normalized.! Many!organizations!are!installing!specialized!equipment!in!meeting!rooms!that!enable!a! webDconference!experience,!and!companies!with!regional!offices!reported!a!steep!decline! in!justification!for!traveling!long!distance!to!attend!meetings.!Cisco’s!WebEx!online! conference!system!seems!to!be!the!most!widely!used!method!for!conducting!such!meetings.! ! Companies!are!generally!not!subsidizing!employees!with!“extras”!to!enable!remote! working.!As!organizations!experiment!with!mobile!work!policies,!typically,!employees!are! not!given!extra!tools!or!resources!to!enable!their!work,!beyond!a!laptop!computer.!At!a! head!office!location,!an!employee!would!have!access!to!a!full!range!of!office!tools!and! technology!(from!photocopiers,!scanners,!and!so!on),!tools!that!the!homeDbased!employee! would!not!have!access!to.!No!organization!reported!making!material!contributions!to!their! remote!employees!to!allow!for!the!purchase!tools,!such!as!a!home!scanner,!printer!paper!or! even!a!work!desk.!The!attitude!among!employers!who!allow!for!employees!to!work! remotely,!is!that!working!from!home!is!a!perk!inDandDofDitself,!and!should!not!be!further! subsidized.!Basic!laptops!are!the!norm!(typically!with!webcam!capability)!while!smart! phones!appear!to!be!issued!on!an!asDrequired!basis.!! Policy!Motivations! ! The!highest!motivation!of!employers!who!introduce!mobile!work!policies!appears!to! be!save!money!on!real!estate!costs.!While!allowing!employees!to!work!remotely!might! have!direct!benefit!to!things!such!as!employee!satisfaction,!the!singular!motivation!cited!by! organizational!respondents!was!that!mobile!work!policies!presented!employers!with!an! opportunity!to!reduce!the!cost!spent!on!prime!real!estate.!Ratios!surrounding!the!number! of!employees!per!square!foot!of!office!space!are!actively!being!reshaped!as!employees!are! encouraged!to!work!from!home!and!permanent!desks!are!being!converted!to!hoteling! stations.!While!the!typical!perDsquareDfoot!cubicle!continues!to!shrink,!some!employers!are! reporting!factors!of!2.5!to!3.0!employees!per!desk.!With!these!major!shifts,!it!can!be! estimated!that!organizations!are!poised!to!significantly!reduce!their!real!estate!costs! through!this!approach,!and!this!stands!as!the!most!commonly!reported!motivation.!! ! There!does!not!appear!to!be!a!link!between!mobile!work!policies!and!consideration! of!carbon!impact!reduction.!It!was!our!expectation!that!organizations!would!be!attracted! to!remoteDwork!policy!due!to!the!reduction!in!carbon!impact!that!reducing!employee!

14! !

Centre!for!Social!Innovation!

! commuting!would!represent,!but!this!hardly!came!up!in!the!interviews!at!all.!One!major! employer!(that!ranks!in!the!top!ten!for!Canadaâ&#x20AC;&#x2122;s!largest!employers)!acknowledged!that! employee!commuting!does!not!factor!into!their!carbon!footprint!calculations!whatsoever,! so!while!reducing!carbon!footprint!is!an!objective,!commuting!impact!is!not!a!factor!for!this! organization.!(Reducing!its!real!estate!portfolio!however,!would!be!structured!as!a!lowerD carbon!initiative,!albeit!not!clearly!articulated.)! ! Management!Considerations!! ! Protection!of!intellectual!property!is!a!major!concern.!Many!employers!cited!the! protection!of!intellectual!property!as!a!major!concern!with!allowing!employees!to!work!in! a!â&#x20AC;&#x2DC;third!spaceâ&#x20AC;&#x2122;!(ie:!not!the!office,!or!home).!Both!from!an!internet!security!aspect!as!well!as! from!a!social!fraternization!pointDofDview,!several!responding!organizations!articulated!an! unease!with!their!employees!working!in!a!space!where!intellectual!property!might!be!at! risk.! ! Fear!of!losing!talent!appears!to!outweigh!potential!benefits!of!collaboration.!Beyond! the!protection!of!intellectual!property,!employers!voiced!concern!about!putting!employees! in!situations!where!they!might!be!hired!away!from!them.!Conceptually,!there!is!an! unrealized!potential!for!collaboration!if!the!Workspace!Hubs!project!can!accomplish! bringing!members!from!different!organizations!work!alongside!each!other.!However,! related!to!the!protection!of!intellectual!property,!more!than!one!employer!voiced!anxieties! around!losing!control!of!business!direction,!culture,!and!ultimately!the!actual!employee,!if! they!are!allowed!to!work!alongside!employees!from!other!organizations.! ! Corporations!are!unlikely!to!purchase!coworking!memberships!for!employees!at!this! point.!An!ultimate!goal!of!this!project!is!to!establish!a!network!of!regional!locations!that! would!present!employers!with!an!alternative!set!of!workplaces!for!their!employees.!At!this! point,!it!is!unlikely!that!an!employer!would!subsidize!its!employees!to!work!somewhere! other!than!their!space!or!their!home.!A!third!space!still!seems!foreign!to!employers!from!a! permission!basis,!let!alone!on!a!basis!where!the!employer!would!pay!the!way.!

2.5. Scan of Competitive Alternatives !

Two!central!alternatives!to!the!Workspace!Hub!concept!will!be!independent!coworking! services!and!business!centres.!!

Independent!Coworking!Centres! ! A!quick!scan!of!coworking!centres!in!the!GTHA!will!show!that!the!overwhelming!majority! of!coworking!spaces!exist!in!downtown!Toronto.!It!is!a!fairly!simple!process!to!secure!a! space!and!have!the!entrepreneur!behind!the!coworking!space!work!there!on!a!daily!basis! and!simply!begin!charging!others!to!use!the!space.!The!barriers!to!entry!are!relatively!low! for!a!subDstandard!space.! ! Creating!a!beautiful,!functional!and!technologically!powered!space,!however,!requires!a! significant!capital!investment.!!Animating!the!community!and!bring!the!collaborative! benefits!requires!a!further!human!resources!investment!that!often!fails!to!make!financial! sense.! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 15!

Section!Two!!Market!Research!Summary!

! Greater!Toronto!and!Hamilton!Area! Platform!302!

Hamilton!

Longbranch!Coworking! CoWorkative!

Etobicoke/!Longbranch! Richmond!Hill!

! City!of!Toronto! Acme!Works!

229!Niagara!Street!

Beach!Business!Hub!

2181!Queen!Street!East!

Bento!Miso!

862!Richmond!Street!West!

Camraderie!Coworking!Inc!

2241!Dundas!Street!West!

CoDLab!

32!Britain!Street!

Co:Work!

703!Bloor!Street!West!

CSI!Annex!

720!Bathurst!Street!

CSI!Regent!Park!

585!Dundas!Street!West!

CSI!Spadina!

215!Spadina!Avenue!

Foundery!!

376!Bathurst!Street!

Locus!Quo!

7!Labatt!Avenue!

Workplace!One!(East)!

341!King!Street!East!

Workplace!One!(West)!

51!Wolseley!Street!

! To!our!knowledge,!no!coworking!centres!presently!operate!in!the!following!municipalities! we!are!studying:!Oakville,!Burlington,!Brampton,!Mississauga,!Vaughan,!Markham!&! Pickering.!The!coworking!centres!that!do!operate!in!the!GTHA!(listed!above)!are!small!and! limited!in!their!reach,!while!we!should!expect!to!see!others!emerge!over!the!coming!years.!! ! Regus!Business!Centres! ! A!service!perhaps!more!familiar!to!those!outside!of!the!city!of!Toronto!is!that!offered!by! Regus!Business!Centres.!Regus!is!a!multinational!corporation!that!offers!executive!style! workspaces!to!the!business!community.!In!both!the!suburban!and!City!of!Toronto! locations,!the!Regus!space!is!modeled!after!a!typical!Class!“A”!office!space!and!it’s!space!is! composed!mainly!of!private!offices!and!meeting!rooms.!! ! Regus!Business!Centres:!Greater!Toronto!and!Hamilton!Area! Burlington! Etobicoke! Markham!–!Trillium!Centre! Markham!–!Valleywood! Mississauga!–!Airport! Mississauga!–!City!Centre! Mississauga!–!Meadowvale! Oakville! Scarborough!

460!Brant!Street! 10!Four!Seasons!Place! 675!Cochrane!Drive! 15!Allstate!Parkway! 2425!Matheson!Blvd!East! 2!&!4!Robert!Speck!Parkway! 7111!Syntex!Drive! 1155!North!Service!Road!West! 10!Milner!Business!Court!

! Regus!Business!Centres:!City!of!Toronto!

16! !

Toronto!–!Bay!Bloor!

1235!Bay!Street!

Toronto!–!Brookfield!Place!

161!Bay!Street!

Toronto!–!Davisville!Centre!

1920!Yonge!Street!

Centre!for!Social!Innovation!

! Toronto!–!Eaton!Centre!

1!Dundas!Street!West!

Toronto!–!First!Canadian! Place! Toronto!–!King!West!

100!King!Street!West!

Toronto!–!Madison!

4950!Bloor!Street!West!

Toronto!–!North!American! Centre! Toronto!–!Parkway!Place!

5700!Yonge!Street!

Toronto!–!Sun!Life!!

3250!Bloor!Street!West!

Toronto!–!Yonge!Bloor!

2!Bloor!Street!West!

Toronto!–!Yonge!Richmond! Centre!

151!Yonge!Street!

500!King!Street!West!

251!Consumers!Road!

! In!their!suburban!locations,!Regus!have!chosen!to!locate!mainly!in!office!parks,!and!are!not! presently!operating!in!any!of!the!Mobility!Hub!areas!we!are!focusing!on,!with!the!exception! of!Mississauga!City!Centre.!While!similar!to!Regus!in!that!we!will!offer!space!to! accommodate!mobile!workers,!we!feel!that!we!are!targeting!a!very!different!type!of! individual!and!are!not!trying!to!replicate!an!executive!environment.!!!

Section Summary !

It!is!clear!to!us!that!there!is!significant!momentum!moving!toward!the!creation!of! necessary!conditions!for!this!project,!but!perhaps!not!all!elements!are!quite!in!place!just! yet.!Coworking!as!a!legitimate!enterprise!is!beginning!to!thrive!and!is!becoming!widely! accepted.!A!move!to!suburban!locations!seems!appropriate!at!this!time,!under!the!correct,! supportive!conditions.!! ! Frustrations!around!business!commuting!are!at!an!allDtime!high,!with!no!signs!of! improving!in!the!near!term.!Meanwhile,!businesses!continue!to!experiment!with!remote! work!policies!and!reconfigurations!of!their!main!office!space!to!accommodate!flexible! teams!and!occasional!workers.!More!and!more!employees!will!be!allowed!to!work! remotely!as!every!year!goes!by,!as!more!companies!transition!to!occasional!or!wideD ranging!mobile!work!policies.!! ! It!is!still!early!days!for!business!mobility!policy!however,!and!it!appears!as!though! employers!will!need!some!time!to!understand!how!best!to!create!and!apply!policies.!The! pace!of!change!in!the!corporate!enterprise!community!can!be!slow,!and!it!is!our! observation!that!corporations!are!still!seeing!place!of!work!as!either!at'the'office!or!at' home.!! ! While!corporations!have!been!quick!to!realize!the!potential!cost!savings!on!real!estate!that! are!related!to!converting!standard!office!space!into!hoteling!floors,!they!appear!relatively! tentative!toward!measuring!the!impacts!of!this!change.!We!suspect!that!over!time,! problems!may!emerge!among!from!widespread!workDfromDhome!policies.!Specifically,! employee!isolation!and!a!diminished!creative/productive!output!may!crop!up!during!this! shift.!Additionally,!managers!may!find!that!the!teleconferencing!capabilities!of!a!home! computer!or!laptop!may!not!be!sufficient!for!participating!in!highDlevel!interactive! meetings.!! ! Finally,!provincial!land!use!policy!is!strongly!moving!toward!creating!dense!mixedDuse! areas!around!suburban!transit!stations,!however!movement!is!slow!and!requires!time!to! see!how!development!will!ultimately!take!shape.!(More!on!this!topic!later!in!report.)!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 17!

Section!Three!!Business!Model!

3. BUSINESS MODEL ANALYSIS ! The!process!of!developing!a!robust!business!model!ensures!that!all!angles!of!the!operation!will! be!considered!in!the!early!stages!of!concept!development,!allowing!discussion!and! contemplation!around!each!business!consideration.!! ! The!business!model!design!we!chose!was!developed!through!our!partnership!with!Cisco! Internet!Business!Solutions!Group.!It!has!been!organized!around!a!platform!originally! developed!by!Swiss!business!strategist!Alexander!Osterwalder!called!“The!Business!Model! Canvas”!and!seeks!to!address!the!following!categories:! ! 1. Customer!Segments! 2. Value!Propositions! 3. Channels! 4. Customer!Relationship! 5. Revenue!Streams! 6. Key!Resources! 7. Key!Activities! 8. Key!Partners! 9. Cost!Structure!

3.1. Customer Segments ! Segmentation!strategies!will!optimize!customer!relationships!and!help!to!achieve!the! Workspace!Hubs!vision!and!guiding!principles.!! ! The!following!main!segments!have!been!identified!in!order!to!create!customized!relationship! strategies!and!service!offerings:!! ! ! Employees!from!businesses,!large!and!small…!“mobile!professionals”! ! Freelancers!(independent!workers,!selfDemployed!professionals)! ! Social!entrepreneurs! ! StartDups! ! Telecommuters!(those!who!work!away!from!the!office!during!normal!business!hours)! ! Traveling/Vacationing!coDworkers! ! Other!(students)!

3.1.1. Mobile & Remote Workers: “Various Shapes and Sizes” ! It!is!easy!to!use!the!terms!mobile!or!remote!workers!to!represent!a!target!audience!group,! however!it!is!helpful!to!understand!the!different!characteristics!of!the!many!types!of!workers! who!would!identify!as!mobile!or!remote.!Some!will!be!target!users,!some!will!not.!(*!=!target! audience)! ! 1.!OfficeDBased! Mobile!Workers!! ! (those!whose! primary!workplace! is!the!office)!

Mobile!Professionals!*! Occasionally!Mobile!*! Mobile!nonDtravellers!

18! !

Employees!away!from!their! primary!workplace!20%!or!more! of!the!time!(e.g.:!traveling!execs)! Employees!away!from!their! primary!workplace!less!than!20%! of!the!time.! Those!workers!who!are!mobile! within!the!office!or!campus!

Centre!for!Social!Innovation!

2.!NonDOffice!Based! Mobile!Workers! ! (workers!who!are! mobile!but!are!not! in!an!office! environment)!

Mobile!OnDLocation!Workers!

3.!HomeDBased! Mobile!Workers! ! (use!their!home!as! a!workplace!all!or! part!of!the!time)!

NonDtravelling!Telecommuters!

Mobile!Field!Workers!*!

Occasionally!Mobile! Telecommuters!*! Mobile!Professional! Telecommuters!*! Occasionally!Mobile!HomeDBased! Business!Owners!*! Mobile!Professional!HomeDBased! Business!Owners!*!

environment!but!do!not!travel! outside!of!the!office!or!campus.! Employees!that!work!at!a!specific! location!but!outside!an!office! environment.!Mobile,!but!only! within!a!specific!area!(e.g.:! warehouse,!construction)! Typically!field!service!employees! (e.g.:!sales,!move!from!location!to! location)! Workers!considered!to!be!mobile! by!virtue!of!being!telecommuters! but!do!not!travel!away!from!their! home!for!business.! Telecommuters,!but!not!away! from!their!office!at!least!20%!of! the!time.! Telecommuters!who!also!travel! away!from!their!homes!or! corporate!offices!at!least!20%!of! the!time.! HomeDbased!income!generating! business!owners,!without!another! corporate!HQ.! Home!business!owners!whose! primary!workplace!is!home!and! who!are!away!from!their!primary! workplace!at!least!20%!of!the! time.! *!=!potential!target!audience!

3.1.2. Global Segment Trends ! “Deskmag”,!a!BerlinDbased!magazine!that!began!publishing!in!2010!dedicated!to!“coworking,! its!communities!and!its!spaces”,!recently!published!it’s!3rd!Annual!Coworking!Survey,!the! most!exhaustive!survey!of!its!kind.!It!is!helpful!to!highlight!a!few!of!the!findings!from!this! survey!as!it!can!provide!insight!into!habits!of!coworking!segments.!! ! Notes'from'Deskmag'3rd'Annual'Coworking'Survey:' ! ! Freelancers!continue!to!dominate!the!membership!base!of!most!coworking!spaces.!Of!all! the!segments,!freelancers!also!have!the!lowest!incomes!among!all!members.!Freelancers! are!also!the!most!loyal!members.! ! An!increasing!percentage!of!the!membership!classifies!itself!as!employees,!numbering! around!a!quarter!worldwide!and!a!third!in!the!U.S.! ! Approximately!one!in!nine!members!are!entrepreneurs,!running!a!business!with! employees.!More!teamwork!requires!more!privacy.! ! Entrepreneurs!are!the!longest!serving!members,!but!think!about!changing!their! workplace!most!often.! ! Entrepreneurs!are!among!the!most!active!members!in!a!coworking!space.! ! Four!out!of!five!entrepreneurs!work!in!fixed!or!flexible!working!teams!(more!than!any! other!group)!and!therefore!prefer!a!fixed!desk,!more!than!the!other!professional!groups.! ! Employees,!for!instance,!are!members!for!an!average!of!only!seven!months.!Further,!they! spend!less!time!in!their!coworking!spaces!compared!to!freelancers!and!entrepreneurs,! so!the!benefits!of!coworking!are!not!(yet)!fully!realized.! ! Employees!also!tend!to!be!quieter!about!coworking,!with!a!cumulative!half!involved!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 19!

Section!Three!!Business!Model!

either!externally!(25%)!or!within!their!coworking!space!(24%).!The!remaining!half!likes! coworking,!but!simply!prefers!to!concentrate!on!their!work.!

3.2. Value Proposition ! As!a!value!proposition,!Workspace!Hubs!is!well!positioned!to!take!advantage!of!current! macro!and!more!micro!trends.!Coworking,!social!entrepreneurship/innovation,! teleworking/smart!working!are!just!some!of!the!trends!Workspace!Hubs!is!responding!to.! Value!propositions!tend!to!be!generic!and!are!not!unique!to!each!customer!segment.!A!niche! focus!on!providing!a!hyperDlocal!communityDfocused!service!is!a!differentiator!from!other! coworking!startDups.! ! Value!Proposition!Grid! ! Users!

Organizations! (public!and!private)!

Local!(city)!government!

Ontario!government!

• less!travel!and/or!fatigue!! • more!flexibility,!services!and!personal!time! • access!office!space!despite!home!impediments! • keeps!home!and!office!separate! • lower!real!estate!and!telework!costs! • better!footprint!and!network!for!telework! • avoids!teleworker’s!“home!alone!syndrome”! • more!satisfied!workforce! • greater!capacity!to!hire!! • ! reduces!“ghost'town”'effect!during!the!day! • !!!!!greater!local!attractiveness!for!businesses! • !!!!!enhanced!local!activity!(restaurants,!stores,!events…)! • !!!!!!creates!local!jobs!and!taxes! • transforms!Ontario’s!traditional!ways!of!working! • enables!faster!telework!adoption!in!the!province! • improved!employment!opportunities!and!flexibility! • reduces!traffic!congestion!and!!CO2!emissions! • improves!transportation!experience!

3.3. Channels ! Value!propositions!are!delivered!to!customers!through!communication,!distribution,!and! sales!channels.!In!the!case!of!Workspace!Hubs,!the!focus!will!be!mostly!direct!as!opposed!to! indirect!channels.!The!Workspace!Hubs!group!will!also!use!existing!communications! channels!available!through!the!Centre!for!Social!Innovation.!! ! Additionally,!when!evaluating!the!prospect!of!partnership!alliances,!access!to!wider!channels! will!be!a!frontDofDmind!consideration,!whether!that!comes!in!the!form!of!a!corporate! sponsorship,!real!estate!alliance,!business!accelerator!partner!or!arrangement!with!local! municipality.!

3.4. Customer Relationship ! Customers!and!relationships!with!customers!are!at!the!heart!of!the!Workspace!Hub!business! model.!Unlike!CSI,!Workspace!Hubs!is!not!looking!to!preDselect!its!members.!To!the!extent! possible,!customers!should!be!able!to!selfDserve!Workspace!Hubs’!services!(this!will!help! lower!costs!and!improve!satisfaction!levels);!however,!given!the!importance!of!customers!to! the!business,!the!level!of!personal!assistance!provided!(e.g.!in!the!form!of!a!community!

20! !

Centre!for!Social!Innovation!

! animator)!should!be!high.!And!while!turnover!at!coworking!locations!is!typically!low,!strong! personal!assistance!could!separate!Workspace!Hubs!from!competitive!offerings.!

3.5. Revenue Streams ! Naturally,!the!main!stream!of!revenue!will!be!generated!from!the!sale!of!desk!space!and!a! direct!relationship!exists!between!the!total!area!of!square!footage!in!any!particular!space! and!the!revenue!performance!that!that!will!space!will!yield.!Private!offices!are!priced! separate!from!hot!desks,!which!are!themselves!priced!differently!from!permanent!desks!and! we!have!studied!extensively!the!appropriate!curation!of!offices!to!hot!desks!to!permanent! desks!for!various!sizes!of!potential!spaces!in!order!to!achieve!both!a!healthy!mix!of!members! and!to!ensure!highest!occupancy.!These!models!were!then!used!in!our!revenue!modeling.! (For!a!more!complete!summary!of!our!revenue!projections,!refer!to!Section!Six!of!this! report.)! ! Beyond!the!sale!of!desk!space,!meeting!rooms!will!be!used!to!generate!revenue!for!both! regular!meetings!as!well!as!larger!training!purposes.!A!goal!of!the!Workspace!Hubs!project!is! to!have!regular!engagement!with!the!outside!community!and!the!space!would!be!made! regularly!available!for!outside!rentals,!for!educational!purposes,!community!events,!parties! and!so!on.!! ! Finally,!associated!usage!fees!(phones,!photocopies,!mailboxes,!etc)!would!be!a!smaller! revenue!stream,!with!the!intention!to!keep!emphasis!on!this!category!as!low!as!possible! (instead!offering!an!attractive!set!of!‘perks’!with!the!monthly!membership!fee).!!

3.6. Key Resources ! Key!resources!describes!the!most!important!assets!required!to!make!the!business!model! work.!For!Workspace!Hubs,!key!resources!include:!the!office!manager!(e.g.!personal! assistance,!strategy,!HR,!finance,!etc.);!marketing/sales;!programme!facilitator/animator;! customer/stakeholder!relations.!And!while!coworking!provides!affordable!space!to!those! without,!it!remains!simply!another!physical!location!to!entrepreneurs,!freelancers,!startDups! and!would!be!teleDcommuters.!Until!the!industry!or!regional!coworking!networks!address! the!‘virtual’!aspect!of!mobility,!they!will!remain!vulnerable!to!change!(i.e.!a!better! mousetrap).! ! The!Workspace!Hubs!project!would!operate!as!a!standDalone!business,!supported!by!the! following!management!structure:!! ! ! CEO! ! CFO! ! COO! ! Director!of!Marketing! ! Director!of!Leasing! ! Director!of!IT! ! Administrative!Manager! ! Site!Managers! ! Community!Animators!

3.7. Key Activities !

Key!activities!for!Workspace!Hubs!include:!marketing/sales;!identifying/securing!grants;! stakeholder!relations!(e.g.!foundations);!maintaining!/!enhancing!Workspace!Hubs’!brand.!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 21!

Section!Three!!Business!Model!

3.7.1. Technological Components ! ! ! ! ! ! ! !

! HighDspeed!Internet!connectivity! WebDbased!reservation!system! Security!and!Wireless! Unified!Communications!(UC)! Intelligent!Building!Management! Physical!security! InDpersonal!videoconferencing:!TelePresence! Digital!Media!Systems!(DMS)!

3.7.2. Enabling Role of Technology ! The!appropriate!application!of!technology!will!be!an!important!strategy!for!both!ensuring! user!comfort!and!productivity!as!well!as!establishing!a!vibrant,!collaborative!community!that! is!connected!to!each!other!physically!and!digitally.! ! Category!

Future!Tools/Services!

Connectivity!/!Access!and!Security!

HighDspeed,!highlyDsecure!internet!access,!UC,!VPN,! etc…! Software!as!a!Service!(SaaS),!Tools!as!a!Service!(TaaS),! management!software! Video/Virtual!Conferencing,!Webex,!ShareFile,!etc…! Online!booking!tools,!customer!management,! invoicing,!event!publications! WebDbased!applications,!member!profiles,!discussion! forums,!external!announcements!…! Satisfaction!levels,!Social!Rate!of!Return! Cloud!Storage!(Data!Center),!“Maker”!Lab!Equipment! Dialogue!Café,!learning!hubs…!

Cloud!Technologies! Collaboration!Tools! Customer!Experience!Tools! My!Workspace!Hubs!Portal! Measurement!Tools! Advanced!Capabilities! Other!

3.8. Key Partners ! Key!Partners!for!Workspace!Hubs!would!be,!but!is!not!limited!to,!the!following!players:! Municipalities;!Corporate!Sponsors;!Real!Estate!Oweners/Developers;!Regional!Innovation! Centres!or!RICs;!Foundations;!other!coworking!organizations.!

3.9. Cost Structure ! The!cost!structure!for!Workspace!Hubs!is!likely!to!be!quite!similar!to!that!of!CSI.!Major! expense!items!include!D!building!services!expenses!(rent!costs!and!operations)!and!General! &!Admin!(G&A)!expenses!(e.g.!salaries).!Many!of!these!cost!items!are!fixed.!

22! !

Centre!for!Social!Innovation!

Section Summary ! The!Workspace!Hubs!Business!Model!Canvas!

! 8.!Key! Partners! !

Municipalities! CSI! Ontario!Network! of!Excellence! (ONE)! Other!GTA! coworking! organizations! Metrolinx! …!

7.!Key!Activities! !

2.!Value!Proposition! !

Marketing/Sales! Obtaining!grants! (gov’t/corporate/! foundation)! Fundraising!

Uniqueness:!One!of!the!few! organizations!of!its!kind!within/across! the!GTA!(416/905!regional!play)! D!focus!on!social!innovation!and! community/neighbourhood! development! D!Emphasis!on!hyperDlocal! D!Customer!service! Community!(People):! D!!Sense!of!community,!part!of! something!special,!and!global!reach! Space:!Collaborative!working! atmosphere;! reliable,!quiet,!and!affordable!place! to!!work! Full!Service:!coworking!to!acceleration!

! 6.!Key!Resources! ! Management!staff! ! Future:!Information! and!Communications! Technology!Services! Platform!

4.!Customer! Relationships! !

1.!Customer! Segments! !

Personal! Assistance! SelfDService!

Freelancers! Entrepreneurs! StartDups!! Corporate/! Government! customers! (lease! structure)!! Local!business! owners! Mobile! workers! Satellite!office! workers!

3.!Channels! ! Direct!I!! Workspace!Hubs! and!CSI!locations! Indirect!–!partners!

! 9.!Cost!Structure!

5.!Revenue!Streams!

' Higher'costs'of'customer'acquisitions' People,!Business!Overhead,!Lease!Costs!

! Office/desk!and!other!usage!fees!(85%)! Some!other!revenues!(15%)!…!new!lease!form!

! !

! ! ! ! ! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 23!

Section!Four!!Communications!and!Brand!Strategy!

4. COMMUNICATIONS AND BRAND STRATEGY ! Building!off!the!business!model!outcomes,!we!set!out!to!define!specific!communications! approaches!as!well!as!a!brand!for!the!proposed!Workspace!Hubs!venture.!We!collaborated!with! TorontoDbased!studio!function!inc.!for!their!expertise!and!the!core!outcomes!of!our!work!with! them!is!summarized!below.!

4.1. Communications Strategy ! Identification!of!Different!Audiences! ! Through!examination!of!the!addressees!we!feel!the!following!groups!represent!the!target! audiences!for!the!Workspace!Hubs!messaging!strategy.!Effective!communication!requires! brand!messages!be!delivered!to!each!audience!in!varying!forms!and!degrees.! Partner!Group!

Macro!Group!

Micro!Group!

investors!

institutional!/! corporate!buyers!

individual!freelancers!/! entrepreneurs!

service!providers!

key!decision!makers!

informationDbased! commuters!

municipalities/cities!

system!controllers!

small!businesses!

cultural!architects!

! Pairing!Messages!with!Audiences! To!speak!most!effectively!to!the!intended!audience!it!is!important!to!identify!which!messages! would!best!resonate!with!the!members!of!that!audience.!Weâ&#x20AC;&#x2122;ve!made!the!following! associations:!partner,!macro!and!micro!audiences.!

4.1.1. Messages for the Partner Audience ! The!culture!of!work!is! changing/has!changed!

! present!a!broader!vision!of!the!future!of!work!as!a! culture!!! ! pitching!a!vision!for!21st!century!workplaces!!! ! describe!Hubsâ&#x20AC;&#x2122;!desire!to!be!ahead!of!the!curve!! ! provide!infrastructure!for!the!new!paradigm!before!it! itself!knows!what!it!needs!! ! when!small!and!large!businesses!are!ready!to!make! the!transition,!the!system!is!already!in!place!to! accommodate!their!needs!

Community!is!important!to! ! there!is!great!value!in!enabling!larger!businesses!to! people,!and!good!for! take!advantage!of!shared!workspaces,!both!as!a!means! business! of!facilitating!innovative!solutions!and!perpetuating! employee!happiness!

24! !

Centre!for!Social!Innovation!

! Coworking!has!grown! 400%!in!the!past!2!years! alone!

! like!the!internet,!tablets!and!mobile!devices,! coworking!is!more!than!a!trend!â&#x20AC;&#x201C;!itâ&#x20AC;&#x2122;s!the!emergence!of! a!new!culture!/!market!that!will!only!get!larger!in!the! years!to!come!

Regional!access!is!what! differentiates!Workspace! Hubs!from!competitors!

! operating!on!the!next!order!of!magnitude!(a!space! with!few!players),!offering!networked!coverage!for!the! GTHA! ! coworking!spaces!that!cater!to!enterprise!business!is!a! massive,!untapped!market!

4.1.2. Messages for the Macro Audience ! Talent!Retention!

! enable!businesses!to!offer!the!perks!only!found!at!the! worldâ&#x20AC;&#x2122;s!leading!companies!! ! convenient!locations!/!allow!employees!to!work!from! their!own!neighborhoods!! ! reduced!commutes,!reduced!weekly!trips!to!HQ!! ! progressive,!antiDcubicle,!attractive!and!inspiring! working!environments! ! positive!effect!on!company!culture!/!corporate!morale!! ! happy!workers!stick!around!(good!talent!has!demands! and!know!how!they!want!to!work)!

More!innovative! teams/solutions!

! having!access!to!contemporary!workspace! environments!means!having!access!to!innovation,! through!diverse!perspectives!and!organic!problemD solving!

More!productivity!

! less!time!wasted!on!unproductive!systems!(commutes,! etc.)!! ! happy!workers!are!more!productive,!bottom!line! results!

CostDeffective!

! no!need!for!oversized!HQs!(commercial!real!estate,! 10Dstories!with!multiple!parking!levels,!etc.)! ! lower!rates!of!employee!turnover!

Regional!access!

! tap!into!the!power!of!a!networked!approach!to!shared! workspace!! ! support!a!large!number!of!your!employees!to! maximize!the!benefits!of!working!in!these!spaces!

Environmental! benefits/corporate! responsibility!

! satisfies!a!commitment!that!enterprise!has!to!have! environmental!initiatives!/!mandates!! ! direct,!quantifiable,!positive!impact!on!congestion!and! air!quality!on!a!large!scale!! ! something!to!be!proud!of!as!a!corporation!internally! and!publicly!/!good!press!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 25!

Section!Four!!Communications!and!Brand!Strategy!

4.1.3. Messages for the Micro Audience ! Live!your!values,!24/7!

! hubs!enables!you!to!lead!the!lifestyle!you!want!to!live! ! happiness!through!this!new!way!of!working! ! engaging!in!your!local!community!/!being!immersed!in! things!that!matter!to!you!! ! making!an!environmental!and!social!impact!on!a! personal!level!

A!social/community!hub!

! freelancers,!solo!entrepreneurs,!startups!want!/!need! spaces!to!work!/!be!around!other!likeDminded!people! working!in!the!knowledge!field! ! access!to!the!community!helps!people!solve!problems! creatively,!grow!their!businesses,!network!effectively,! accelerate!collaborative!serendipity,!etc.! ! fresh,!creative,!fun!workspaces!and!people!to!inspire! your!best!work!

Social!spaces!catalyze! innovation!

! sharing!challenges!and!organically!brainstorming!with! others!for!external!input!adds!value!to!any!project!/! stronger!solutions!in!the!end! ! inspiration!through!collaboration,!diverse! perspectives!

WellDdesigned,!wellD stocked!spaces! (professional! infrastructure)!

! addressing!physical!needs!of!running!a!small!business! professionally! ! taking!the!headache!out!of!operations;!no!hassles!with! internet!connections,!other!!office!amenities!! ! innovating!office!culture!/!providing!a!team!dynamic! to!people!that!might!otherwise!!work!in!isolation!! ! lets!people!focus!on!what!matters:!running!their! business!

4.2. Branding ! What’s!in!a!name?! ! The!right!name!is!timeless,!tireless,!easy!to!say!and!remember;!it!stands!for!something,!and! facilitates!brand!extensions.!Its!sound!has!rhythm.!It!looks!great!in!the!text!of!an!email!and!in! a!logo.!A!wellDchosen!name!is!an!essential!brand!asset!as!well!as!a!24/7!workhorse.! Chosen!Naming!Concept! ! Fabric! ! The!meaning!of!fabric!is!“a!cloth!made!by!weaving,!knitting,!or!felting!fibers”,!and!to!our! minds!paints!a!lovely!poetic!picture!of!the!organization’s!goals!and!offerings.!

26! !

Centre!for!Social!Innovation!

! The!word!itself!is!also!used!to!describe!a!framework;!a!structure:!the!fabric!of!society.!Using! a!word!that!offers!a!departure!from!the!expected!infuses!the!name!with!metaphoric!interest,! opens!the!imagination,!and!to!us,!exemplifies!creativity!and!innovation.! Brand!Identity!Examples!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 27!

Section!Five!!Location!Profiles!

5. LOCATION PROFILES 5.1. Regional Overview & Policy Framework 5.1.1.

Places to Grow

! The!Ontario!Governmentâ&#x20AC;&#x2122;s!Places'to'Grow!legislation!(2006)!forms!the!basis!and!starting! point!for!the!strategic!location!analysis!of!the!Workspace!Hubs!project.!The!time!horizon!for! this!project!would!be!considerable!and!as!such,!care!must!be!given!to!choosing!locations!that! going!to!serve!as!future!focalDpoints!of!suburban!development!and!culture.! As!a!strategy!to!combat!urban!sprawl,!the!Ontario!Growth!Secretariat!set!out!with!Places'to' Grow!to!create!development!conditions!that!would!encourage!greater!densification!around! certain!identified!strategic!locations!throughout!the!Greater!Toronto!and!Hamilton!Area! (GTHA).!With!regional!population!expected!to!hit!8.6!million!by!2031,!the!resulting! legislation!identified!twentyDfive!Urban!Growth!Centres!(UGCs)!that!were!chosen!based!on! their!existing!conditions!of!suburban!centrality!combined!with!future!potential!of!increased! density!through!transportation!planning.!These!UGCs!represented!the!first!filter!in!our! location!analysis.!

! ! !

28! !

! Urban!Growth!Centres!of!the!GTHA.!From!Places'to'Grow!(2006).!

Centre!for!Social!Innovation!

! The!Importance!of!Density! Our!vision!for!the!Workspace!Hubs!project!is!to!locate!in!areas!where!there!exists!a!certain! amount!of!planned!density!that!will!allow!for!community!networks!to!take!shape.!We!believe! that!increased!density!in!otherwise!lowDdense!settings!will!help!to!transform!suburban! landscapes!from!a!carDdependent!environment!to!one!that!encourages!active!transportation! and!will!enable!more!grassroots!community!services!to!bloom.!! The!Places!to!Grow!Act!sets!out!specific!targets!for!its!Urban!Growth!Centres,!tying!certain! residential!and!employment!goals!to!zoning!and!land!use!decisions.!These!density!targets! help!to!inform!our!strategic!location!selection!criteria,!as!we!can!begin!to!envision!the!type!of! growth!expected!in!the!areas!we!are!studying.!!

! ! Illustration!of!residents!and!jobs!density!typologies.!From!Places' !

to'Grow!(Province!of!Ontario,!2006).!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 29!

Section!Five!!Location!Profiles!

2031!Minimum!Gross!Density!Targets!for!Urban!Growth!Centres!

! 400!people!&!jobs!combined! per!hectare!

• • • • •

Downtown!Toronto! Etobicoke!Centre! North!York!Centre! Scarborough!Centre! YongeDEglinton!Centre! !

200!people!&!jobs! combined!per!hectare!

• • • • • • • • • • • • •

Downtown!Brampton! Downtown!Burlington! Downtown!Hamilton! Downtown!Kitchener! Uptown!Waterloo!

150!people!&!jobs! combined!per!hectare!

• • • • •

Downtown!Milton! Markham!Centre! Mississauga!City!Centre! Newmarket!Centre!

Downtown!Barrie! Downtown!Brantford! Downtown!Cambridge! Downtown!Guelph! Downtown! Peterborough!

•

Downtown!St.! Catharines! !

Midtown!Oakville! Downtown!Oshawa! Downtown!Pickering! Richmond! Hill/Langstaff!Gateway!

•

Vaughan!Corporate! Centre! !

5.1.2.

The Big Move & “Mobility Hubs”

! Using!the!Places'to'Grow!Act!as!its!basis,!the!Greater!Toronto!Transportation!Authority! (established!by!the!Ontario!Government!in!2006!and!renamed!Metrolinx!in!2008)!drafted!a! major!regional!transportation!plan!for!the!GTHA,!named!The'Big'Move:'Transforming' Transportation'in'the'Greater'Toronto'and'Hamilton'Area,!released!in!November!2008.! Importantly,!this!document!identified!significant!existing!and!future!transportation!nodes! within!the!GTHA!that!could!serve!as!future!hubs!within!the!regional!system.!! The!strategic!document!borrowed!from!Places'to'Grow!by!taking!already!approved! intensification!strategies!around!the!UGCs,!and!proposed!transitDbased!infrastructural! commitments!around!those!UGCs!as!a!way!of!evolving!the!transportation!network!of!the! GTHA.!The!vital!outcome!of!the!Big!Move!document!is!the!identification!of!a!series!of! identified!Mobility!Hubs,!which!Metrolinx!describes!as:!“places!of!connectivity!between! regional!and!rapid!transit!services,!where!different!modes!of!transportation!come!together! seamlessly.!They!have,!or!are!planned!to!have!an!attractive,!intensive!concentration!of! employment,!living,!shopping!and!enjoyment!around!a!major!transit!station.”! As!growth!continues!throughout!the!GTHA,!there!is!ongoing!commitment!at!multiple!levels! of!government!to!follow!through!with!the!strategies!laid!out!in!the!Big!Move!document.! Mobility!Hubs!are!the!key!future!connection!points!within!our!region!and!allow!us!to!identify! potential!future!locations!for!Workspace!Hubs.! !

30! !

Centre!for!Social!Innovation!

! Planned!Mobility!Hubs!of!Greater!Toronto!and!Hamilton!Area!

! ! ! ! !

Mobility!Hubs!of!the!Greater!Toronto!and!Hamilton!Area.!From!The!Big!Move!(Metrolinx,!2008).!

5.2. Shortlisting: Establishing Shortlist of Key GTHA Workspace Hub Sites ! From!the!list!of!twentyDfive!Urban!Growth!Centres!(and!even!more!Mobility!Hubs)!we!set!out! parameters!for!establishing!our!shortlist!of!examined!locations.!Specifically,!the!locations! needed!to!be!considered!Anchor!Moblity!Hubs!by!Metrolinx!(those!are!Hubs!deemed!to!have! â&#x20AC;&#x153;strategic!importanceâ&#x20AC;?!due!to!their!modal!interchange!dimensions!and!proximity!to!existing!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 31!

Section!Five!!Location!Profiles!

residential)!and!located!close!enough!to!Toronto,!so!as!to!facilitate!a!potential!operational! network.!We!felt!that!while!other!locations!not!included!on!this!list!could!conceivably! become!good!potential!fits!for!the!Workplace!Hubs!project!(e.g.:!Guelph,!KitchenerDWaterloo,! or!even!the!area!of!WestonDMount!Dennis),!the!starting!point!needed!to!be!rooted!in!the! central!Mobility!Hub!system.!! ! We!therefore,!narrowed!our!list!down!to!the!following!ten!locations:!! !

! It!is!useful!to!note!that!each!of!these!locations!serves!several!modes!of!transportation!and!all! are!either!existing!or!planned!downtowns!or!town!centres.!Additionally,!for!most!locations,! growth!forecasts!are!high!and!many!house!existing!institutions!(colleges!or!universities,!for! instance)!or!destinations!(major!retail!or!sporting!facility,!as!examples).!! ! Some!on!the!list,!are!situated!in!urban!settings!–!Hamilton!and!Brampton!–!while!others!–! Vaughan,!Markham,!Oakville!–!exist!more!within!more!emerging!settings.!The!list!represents! a!diverse!mix!of!typologies!to!consider.!! !

5.3. Individual Hub Location Analysis ! The!following!section!will!provide!detailed!analysis!of!each!shortDlisted!hub!location.!

5.3.5.

Downtown Hamilton

32! !

Centre!for!Social!Innovation!

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Hamilton’s!location!at!the!western!end!of! Ontario’s!Golden!Horseshoe!provides!businesses! with!easy!access!to!a!network!of!highways,! international!rail!lines,!and!the!Port!of!Hamilton.! Local!air!connections!to!international! destinations!are!close!by!with!John!C.!Munro! Hamilton!International!Airport,!Lester!B.!Pearson! International!Airport!in!Toronto!and!Buffalo! Niagara!International!Airport!just!across!the! border!in!New!York!State.!The!Queen!Elizabeth! Way!provides!ready!access!to!both!the!Greater! Toronto!Area,!a!regional!market!of!over!six! million!people,!and!Highway!401.!Highway!401!is! the!Canadian!link!to!the!NAFTA!super!highway! connecting!Ontario!with!the!ID75!serving! Michigan,!Ohio,!Kentucky,!Tennessee,!Georgia!and! Florida!and!the!ID90!connections!to!the!eastern! seaboard.!With!the!U.!S.!border!only!an!hour’s! drive!away,!Hamilton!is!within!half!a!day’s!drive! of!key!major!urban!markets!in!the!United!States.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

519,949! 41! 214,542! $70,025! 3%!

! Largest!Employers!(Office!Users)!! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Hamilton!Police!Services! Media!Express! Horizon!Utilities!Corporation! Population!Health!Research!Institute! Rygiel!Supports!Community!Living! SP!Data!Capital!Corporation! Community!Care!Access!Centre! Documented!Research!Services!Inc.! JNE!Consulting!Ltd.! City!of!Hamilton!

! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 33!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!!

($10.60(( ($10.50((

($14.83((

($10.62((

($17.64((

($9.85((

($14.99((

($11.62((

($15.52((

($14.02((

($12.12(( ($10.12((

($16.60((

($16.42((

($25.08((

($23.30(( ($15.06((

($12.28((

($14.19((

!$#!!!!

!! '

Avg.!Asking!Net!Rent!psf!

Avg.!Addi:onal!Rent!psf!

Source:'DTZ'Barnicke'

! Mobility!Hub!Status! ! Downtown!Hamilton!is!identified!as!an!Anchor!Mobility!Hub,!and!plays!an!important!role!in! its!location!at!the!Western!end!of!the!GTHA!transportation!region.!Downtown!Hamilton! includes!GO!train!(Lakeshore!West!Line)!and!bus!network,!local!bus!services!and!is!planned! to!integrate!twoDway!allDday!train!service!as!well!as!a!local!cityDwide!LRT!system!(still!in!the! preDdevelopment!stages).!! ! Project!Statement! ! While!other!Hub!locations!are!in!various!stages!of!planning!and!visioning,!the!Hamilton! Mobility!Hub!is!already!operating!in!a!mixedDuse!urban!environment,!a!setting!that!would!be! very!attractive!to!mobile!workers,!freelancers!and!entrepreneurs!to!work!from.! ! While!the!local!economy!in!downtown!Hamilton!has!been!depressed!for!several!years,!with! little!commercial!development!activity,!signs!of!an!urban!renewal!are!widely!evident,! especially!in!the!area!around!James!Street!North.!Here,!a!strong!local!community!has! emerged,!centered!on!the!arts!and!regular!events!such!as!the!monthly!James!Street!North!Art! Crawl!lead!to!the!recent!opening!of!a!satellite!location!of!the!Hamilton!Art!Gallery.! ! Meanwhile,!the!city!is!undertaking!a!series!of!investments!in!the!downtown,!from!the!cityD led!purchase!and!restoration!of!the!Lister!Block!to!major!streetscape!improvements.!Our! team!has!been!engaged!with!the!City’s!Downtown!Economic!Development!office!and!there!is! strong!interest!in!developing!the!necessary!partnerships!for!a!Workspace!Hub!location!here.! ! Hamilton!is!home!to!two!large!postDsecondary!institutions!(McMaster!University!and! Mohawk!College)!that!could!be!potential!partners!for!new!business!incubation.!Additionally,! Innovation!Factory,!a!member!of!the!ONE!Network’s!Centre’s!of!Excellence,!is!actively! looking!to!expand!its!reach!and!could!represent!a!possible!alignment!opportunity.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!Immediate!

34! !

Centre!for!Social!Innovation!

! 5.3.5.

Midtown Oakville

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Located!at!the!epicentre!of!Canada’s!Golden! Horseshoe,!Oakville,!a!dynamic!community!of! 170,000!residents,!is!well!within!reach!of!major! U.S.!capital!markets!and!nearly!seven!million! potential!consumers!in!southern!Ontario.!Oakville! is!one!of!North!America’s!fastest!growing!markets! with!approximately!600!ha!(1450!acres)!of! primeDlocation!employment!land!scheduled!to!be! serviced!for!development.!Oakville’s!focus!on! growing!clusters!in!knowledgeDbased!industries! is!coupled!with!one!of!the!lowest!nonDresidential! property!tax!rates!in!the!GTA.!Oakville!has! become!the!location!of!choice!for!over!300! national!and!international!corporate! headquarters!that!has!taken!advantage!of!the! town’s!talented!workforce,!advanced!training! opportunities!and!premium!location!to!build! competitive!advantage.!Oakville’s!industry! strengths!include!Advanced!Manufacturing,! Professional,!Scientific!and!Technical!Services,! Life!Sciences!and!Digital!Media!and!Animation.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

182,520! 40.2! 63,894! $92,394! 10.2%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Ford!Motor!Company!of!Canada!Ltd.! Goodrich!Landing!Gear! Siemens!Canada! Tim!Hortons!Inc.! AMEC! GE!Water!and!Process!Technologie! Dufferin!Construction! Mattamy!Homes!Ltd.! SNC!Lavalin!Nuclear!Inc.! Pelmorex!Media!Inc.!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 35!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! The!Midtown!Oakville!Mobility!Hub!appears!to!be!one!of!the!priority!Anchor!Hub!locations! that!Metrolinx!is!fastDtracking!for!development,!although!the!time!horizon!to!achieve!a! mature!and!diverse!hub!could!be!lengthy,!as!it!transfers!from!a!environment!presently! dominated!by!surface!level!parking!and!minimal!station!amenities.! ! Metrolinx!recently!completed!a!detailed!study!on!the!Midtown!Oakville!Mobility!Hub!(one!of! four!such!studies!completed!â&#x20AC;&#x201C;!Cooksville!GO,!Dundas!WestDBloor!&!Port!Credit!GO!being!the! other!three),!which!laid!out!the!strategic!vision!for!the!area!around!the!Oakville!GO!Station! and!aligns!with!Oakvilleâ&#x20AC;&#x2122;s!2011!Official!Plan.!The!vision!calls!for!the!conversion!of!publiclyD owned!lands!around!the!GO!station,!the!majority!of!which!is!owned!by!Metrolinx,!into!a!mix! of!residential,!commercial!and!retail!uses.!! ! Project!Statement! ! Although!the!time!horizon!could!be!over!several!years!before!a!location!could!be!active,! Midtown!Oakville!represents!a!very!good!opportunity!to!be!involved!with!the!strategic! development!of!the!Mobility!Hub!from!the!early!stages.!One!of!the!guiding!principles!of!the! Workspace!Hubs!project!is!to!be!active!placeDmakers!in!any!location!we!choose!to!operate! within,!and!early!involvement!could!allow!for!the!Workspace!Hub!to!be!a!leader!in!the! community!activation!and!development!of!local!culture.!! ! There!exists!a!strong!coordination!between!the!City!of!Oakville!and!Metrolinx!to!execute!the! Mobility!Hub!development!plans,!with!proposed!new!pedestrian,!bike!and!bus!connections.! ! The!Metrolinx!report!cites!strong!growth!in!the!office!sector!in!Oakville!(150,000!new!office! space!in!2012)!and!the!recent!decision!by!Rockstar!Games!(creators!of!the!popular!Grand! Theft!Auto!series!of!video!games!and!others)!to!locate!its!flagship!Canadian!office!in!Oakville! in!a!positive!indication!of!a!growing!highDtech!sector!in!the!area!that!would!have!natural! synergies!with!the!services!offered!by!Workspace!Hubs.! ! Population!levels!are!high,!as!are!household!incomes,!indicating!a!strong!potential!local!userD base.!Present!commercial!office!rents!are!at!the!GTA!average.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!MidDTerm!(4D6!years)!

36! !

Centre!for!Social!Innovation!

! 5.3.5.

Downtown Burlington

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Burlington!is!recognized!as!one!of!Canadaâ&#x20AC;&#x2122;s!most! dynamic!cities.!That!is!why!MoneySense! Magazine!ranked!Burlington!as!the!best!city!to! live!in!the!Greater!Toronto!Area!and!the!second! best!city!in!Canada.!Burlington!provides!a!unique! set!of!opportunities!for!new!investors!and! company!expansion.!It!is!central!to!the!Golden! Horseshoe,!Canadaâ&#x20AC;&#x2122;s!largest!market.!Located! along!the!QEW,!Burlington!has!direct!highway! links!to!major!U.S.!markets!such!as!Michigan!and! New!York!and!has!three!international!airports,! all!within!a!oneDhour!drive.!A!unique! concentration!of!diverse,!knowledgeDbased! industries!creates!maximum!opportunity!for! companies!to!source!new!markets.!Burlington! offers!a!high!level!of!amenities,!where!executives! and!employees!enjoy!a!healthy!lifeDwork!balance.! Overall,!Burlington!has!a!strong!spirit!of! collaboration!between!local!companies!and!is!a! city!that!fosters!partnerships!to!improve!its! longDterm!economic!prosperity.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

175,779! 41.8! 69,813! $74,969! 6.9%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Cogent!Power! Comtek!Advanced!Structures!Ltd.! Boehringer!Ingelheim!(Canada)! Byrne!Engineering! CIT!Financial!Ltd.! John!Deere!Credit!Inc.! Fisher!Ludlow! FedEx! Purolator!Courier!Ltd.! Cogeco!Cable!Canada!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 37!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! Presently,!the!Burlington!Mobility!Hub!operates!as!GO!Burlington!Station!(with!bus!and!train! service!on!the!Lakeshore!West!line)!with!connections!to!local!Burlington!Transit!(bus)!and! nearby!Aldershot!Station!(VIA!Rail).!Development!objectives!in!the!Big!Move!indicate!a!more! comprehensive!integration!between!GO!and!Burlington!Transit!(including!local!Rapid! Transit)!as!well!as!twoDway!allDday!express!service!on!the!Lakeshore!West!GO!Train!Line.!! ! The!Burlington!Mobility!Hub!is!identified!as!a!Gateway!Hub!and!does!not!appear!to!be!earD marked!for!nearDterm!redevelopment.!! ! Project!Statement! ! Although!Burlington!has!appealing!commercial!rent!levels!along!with!high!numbers!of! regular!commuters!–!Metrolinx!estimate!over!2,500!people!start!their!commute!from!this! station!each!morning!–!the!locational!setting!of!the!Mobility!Hub!station!in!relation!to!the! more!appealing!waterfront!district!does!not!appear!to!support!a!Workspace!Hub!proposal.!! ! The!area!around!the!Hub!location!–!to!the!south!of!the!Queen!Elizabeth!Expressway!–!is! mostly!developed!(and!mostly!lowDdense!residential)!with!little!room!for!expansive! development!projects!in!the!immediate!catchment!area!of!the!station.!It!is!expected!that! development!of!this!Mobility!Hub!will!likely!be!focused!on!serving!the!functions!of!integrated! transit!mobility,!without!much!emphasis!on!ancillary!development!or!services,!such!as!a! commercial!office!district.! ! The!Urban!Growth!Centre!district!identified!in!Place'To'Grow,!is!centered!around!the! waterfront!area!which!would!have!strong!community!and!recreational!facilities!for! Workspace!Hub!users,!and!could!be!a!potential!locational!choice,!but!would!be!significantly! removed!from!station!access!and!would!not!fit!with!the!connected!mandate!of!the!project.!! ! With!nearby!Oakville!and!Hamilton!as!more!logical!locations,!Burlington’s!suitability!is! likewise!reduced.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!Low/None!

38! !

Centre!for!Social!Innovation!

! 5.3.4

Downtown Brampton

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Brampton’s!“Open!for!Business”!attitude!and! dedication!to!supporting!the!innovation!and! strategic!growth!of!the!business!community!has! helped!to!position!the!City!as!a!premier!business! location.!! Brampton!is!the!9th!largest!city!in!Canada!and!is! among!the!top!10!most!active!construction! markets!in!the!country.!Adding!to!this,!Brampton! is!strategically!located!within!the!Greater! Toronto!Area!–!Canada’s!economic!engine.!! Brampton’s!highly!diversified!local!economy!is! well!positioned!to!not!only!remain!steadfast!in! the!face!of!challenging!economic!times,!but!is!on! a!strong!course!towards!attracting!additional! employment!and!industrialDcommercial!activity! in!the!years!ahead.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

523,911! 35! 154,663! $83,379! 21%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Rogers!Communications!Inc.! Loblaw!Companies!Ltd.!(Head!Office)! GammaDDynacare!Medical!Laboratories! MDA!Space!Missions! Waste!Management!of!Canada!Corporation! Zellers!Inc./Target!(Head!Office)! EXP!Global!Inc.! Entertainment!One!Ltd.! Peel!Regional!Police!Services! City!of!Brampton!

! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 39!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! With!VIA!Rail!and!GO!(Kitchener!Line)!already!integrated,!the!Downtown!Brampton!Transit! Terminal!is!an!important!Anchor!Hub!in!the!Mobility!Hub!network.!The!Downtown! Brampton!Mobility!Hub!location!is!slated!to!be!the!northern!terminus!of!the!proposed! HurontarioDMain!LRT!project,!a!public!transit!initiative!that!will!link!Brampton!with!Port! Credit,!along!Main!and!Hurontario!Streets,!passing!through!Mississauga!City!Centre.!! ! Situated!in!a!downtown!urban!location,!the!Downtown!Brampton!Mobility!Hub!already! benefits!from!the!kind!of!diverse!landDuses!that!the!more!suburban!locations!are!attempting! to!develop!towards.!MetrolinxDled!development!will!likely!focus!on!stationDupgrades.! ! Project!Statement! ! Downtown!Brampton,!along!with!Downtown!Hamilton,!are!two!Mobility!Hubs!that!are!set! within!preexisting!urban!areas,!making!them!immediately!attractive!as!potential!locations! for!a!Workspace!Hub.!Based!on!CSIâ&#x20AC;&#x2122;s!experience!operating!the!three!Toronto!locations,!the! mix!of!residential,!retail,!commercial,!cultural!and!recreational!activities!that!are! immediately!accessible!from!a!Downtown!Brampton!location!is!a!strong!element!of! attraction!for!potential!users!of!coworking!facilities.!! ! In!recent!decades,!Brampton!has!taken!on!the!profile!of!a!carDdominated!residential!suburb.! Jobs!have!concentrated!in!the!lightDheavy!industrial!districts!around!HWY!410,!and!the! historic!downtown!has!been!neglected.!Indeed,!the!popularity!of!Bramalea!City!Centre!since! its!1973!opening!has!taken!much!of!the!retail!and!recreational!interest!with!it,!stunting!the! downtownâ&#x20AC;&#x2122;s!development.!! ! In!the!past!few!years!however,!there!has!been!a!noticeable!refocusing!of!the!developmental! interest!of!the!City!of!Brampton!onto!the!downtown,!with!several!new!condo!projects! underway!as!well!as!a!new!cultural!district!around!the!cityDbuilt!Rose!Theatre.!Commercial! renewal!downtown!has!been!slow!but!is!developing.!! ! Our!team!has!engaged!with!Downtown!Business!Development!officials!who!are!keen!to!see!a! Workspace!Hub!project!succeed,!so!partnerships!and!financial!support!is!certainly!possible.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!Immediate!

40! !

Centre!for!Social!Innovation!

! 5.3.5.

Mississauga City Centre

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! As!Canada’s!sixth!largest!city,!Mississauga!is!a! diverse!and!progressive!municipality.!With! culturally!rich!and!diverse!communities,!the!City! has!been!recognized!as!Canada’s!safest!city!for! the!10th!year!in!a!row!and!offers!a!variety!of! quality!housing,!schools,!healthcare!facilities!and! more!than!480!parks!and!trails.!Mississauga!is! home!to!the!University!of!Toronto,!Mississauga! Campus!and!is!the!new!home!of!Sheridan! Institute!of!Technology!and!Advanced!Learning! Hazel!McCallion!Campus.!The!City!also!is!within! commuting!distance!to!an!additional!10! universities!and!11!colleges.!Mississauga!is! centrally!located!with!easy!access!to!global! markets!D!a!90!minute!drive!from!the!U.S.!border! and!within!a!day’s!drive!is!North!America’s! richest!markets!with!access!to!164!million! consumers.!Canada’s!largest!international!airport! is!located!right!in!Mississauga,!with!nonDstop! services!to!180!destinations!in!60!countries! across!the!globe.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

713,443! 39! 234,585! $88,162! 7%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

HewlettDPackard!(Canada)!Company! Sage!Software!Canada!Ltd.! Symcor!Inc.! Bell!Mobility!Inc.! TD!Financial!Group! Maple!Leaf!Consumer!Foods! Baxter!Corporation! Trapeze!Software!Inc.! Oracle!Corporation!Canada! Citibank!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 41!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! The!Mississauga!City!Centre!Mobility!Hub!is!located!on!the!north!end!of!Square!One! shopping!centre!and!is!identified!as!an!Anchor!Hub.!This!location!includes!the!Square!One! Bus!Terminal!with!future!plans!for!to!involve!integration!with!the!planned!MainDHurontario! LRT.!! ! Nearby,!the!Cooksville!GO!Station!(which!sits!on!the!Milton!GO!train!line,!will!be!connected! to!Mississauga!City!Centre!via!the!eventual!LRT!and!is!a!Gateway!Hub)!is!being!considered! for!broad!redevelopment,!including!the!addition!of!midrise!residential!and!commercial! buildings!around!the!Hub!station.! !! Project!Statement! ! As!the!City!of!Mississauga!attempts!to!create!a!new!downtown!district!grounded!in! sustainable!living,!there!is!an!emerging!–!albeit!farDterm!–!opportunity!for!a!Workspace!Hub! project!to!enrich!(and!benefit!from)!this!transformation.!! ! Mississauga!has!begun!work!on!one!of!the!largest!urban!development!projects!of!its!kind!in! the!GTHA,!which!if!executed!as!conceived,!will!greatly!redefine!the!identity!of!Mississauga!as! an!autoDdependent!city.!The!master!plan!for!the!project!–!entitled!Mississauga!Downtown!21! –!focuses!on!a!major!reDdesign!of!the!area!around!Square!One!shopping!centre.!This!redesign! shifts!the!focus!toward!urban!sustainability!along!with!active!and!public!transportation,! while!setting!out!to!build!enhanced!street!culture!and!a!sense!of!place.!With!integrated! transit!being!a!central!part!of!the!transformation,!there!is!a!strong!strategic!fit!between! Mississauga’s!objectives!and!the!principles!of!the!Workspace!Hubs!project.! ! Mississauga!is!Canada’s!sixth!largest!city!and!boasts!an!impressive!and!diverse!list!of!multiD national!offices.!Notably,!the!software!and!high!tech!cluster!that!exists!in!Mississauga!is!a! complimentary!match!to!our!project.!The!newly!opened!Sheridan!Business!School!campus! represents!a!logical!partnership!opportunity!for!business!incubation.! ! Unfortunately,!it!is!still!very!early!in!the!conversion!to!this!new!urban!identity,!but! Mississauga!City!Centre!could!ultimately!be!a!very!intriguing!future!location.!! ! Overall!Suitability!For!Project!! (None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!MidDTerm!(4D6!years)!

42! !

Centre!for!Social!Innovation!

! 5.3.6.

Vaughan Metropolitan Centre

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Vaughan!has!a!strong!and!diverse!economy!that! welcomes!worldwide!investment.!The!City!of! Vaughan!remains!one!of!Canadaâ&#x20AC;&#x2122;s!fastest!growing! cities.!Vaughan!is!275!km2!in!area,!predicted!to! grow!to!416,600!residents!and!266,100!jobs!by! 2031.!Vaughan!is!a!multicultural!city!with!the! growing!communities!of!Concord,!Kleinburg,! Maple,!Thornhill!and!Woodbridge.!Like!its!people,! the!economy!of!Vaughan!is!diverse,!providing! stability!through!all!economic!cycles.!Vaughan!is! also!an!entrepreneurial!community.!Small! businesses!of!twenty!or!less!employees!account! for!the!majority!of!all!business!activity!in! Vaughan.!More!than!9,600!businesses!are!located! in!Vaughan,!employing!more!than!160,000! people.!Manufacturing,!construction!and! wholesale!are!the!largest!economic!sectors.!The! most!recent!Statistics!Canada!census!figures!show! the!City!gained!25,000!jobs!between!2001!and! 2006!D!a!growth!rate!of!22.2%,!which!is!the! highest!of!any!city!in!Canada.!! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

288,301! 38! 86,060! $108,925! 21%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

City!of!Vaughan! AB!!Sciex! 407!ETR! Aastra!Technologies!Ltd.! Trilliant!Networkd!Inc.! Noranco!Inc.! RuggedCom!Inc.! PowerStream! Soroc!Technology!Inc.! Salga!Associates!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 43!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($12.12(( ($23.30((

($15.06((

($10.12((

($14.02(( ($25.08(( ($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($10.60((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

Source:'DTZ'Barnicke'

! Mobility!Hub!Status! ! Vaughn!Municipal!Centre!is!identified!as!an!Anchor!Hub,!integrating!an!important!new!TTC! station!(an!extension!on!the!Spadina!line!and!the!first!TTC!station!to!be!built!outside!the!City! of!Toronto)!with!a!soon!to!be!completed!Highway!7!Bus!Rapid!Transit!system!(York!VIVA)! along!with!other!local!bus!networks.!! ! The!Mobility!Hub!development!is!part!of!a!major!â&#x20AC;&#x2DC;green!fieldâ&#x20AC;&#x2122;!development!project!lead!by! the!City!of!Vaughan!and!private!land!developers!(most!notably!Smart!Centres!and!Toromont! Industries!Ltd).!The!proposed!development!for!Vaughan!Metropolitan!Centre!features!a!mix! of!commercial!office,!residential!and!retail!facilities.!! ! Project!Statement! ! Like!Mississauga!City!Centre!to!the!south!and!Markham!Centre!to!the!east,!the!municipal!and! developmental!energy!around!creating!a!compact,!walkable!community!in!Vaughan!with! mixed!uses!is!very!encouraging.!These!types!of!projects!that!stress!density!and!walkability! have!the!potential!to!transform!our!region!by!stemming!off!both!residential!and!job!sprawl.!! ! In!the!way!that!these!projects!point!to!a!new!way!of!conceiving!of!the!suburban!form,!the! Workspace!Hubs!project!also!is!envisioning!a!new!world!in!which!mobile!knowledge! employees!are!drawn!to!such!high!dense!areas,!due!to!their!sense!of!place,!culture!and!urban! amenities.!However,!the!time!horizon!on!these!master!plan!developments!makes!any!kind!of! commitment!a!challenge.!! ! For!Vaughan,!so!much!still!need!to!be!determined,!such!as!what!will!the!community!make!up! look!like!and!how!much!commercial!space!will!be!available.!With!the!exception!of!and!TTC! station!development!and!two!early!condominium!announcements,!only!one!commercial! project!has!been!announced!and!this!new!construction!project!will!undoubtedly!have!high! entry!rental!rates.!Since!virtually!all!the!land!is!going!to!be!privately!developed!and!space! arrangement!negotiations!would!need!to!be!done!with!the!developer.!! ! At!best,!the!prospect!for!Vaughan!is!hopeful.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!LongDTerm!(6D10!years)!

44! !

Centre!for!Social!Innovation!

! 5.3.7.

Richmond Hill / Langstaff Gateway

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Richmond!Hill!is!part!of!Canada’s!largest! technology!cluster,!with!access!to!top!incubators! and!investors.!Richmond!Hill!leads!in!other! sectors!too,!including!professional,!scientific!and! technical!services,!finance!and!insurance,! healthcare,!information!and!cultural!industries.!! Public!transit!efficiently!moves!people!into!the! city,!while!major!highways,!ports!and! international!airports!are!nearby!facilitating!the! efficient!movement!of!products,!services!and! people.!Richmond!Hill!boasts!Canada’s!most! educated!workforce,!with!close!access!to!worldD! leading!professional!services,!colleges,! universities!and!research!facilities.!Richmond! Hill’s!financial!health!has!produced!steady! economic!growth!year!over!year.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

185,541! 39.8! 60,169! $78,976! 14%!

York!Central!Hospital! Apotex! Town!of!Richmond!Hill! Acklands!Grainger! Walmart! Sheraton!Parkway!Toronto!North!Hotel/Best! Western!Parkway!Hotel! Staples!Business!Depot!(Head!Office)! Regional!Municipality!of!York!–!South!Services! Centre! Rogers!Cable! Victaulic!Company!of!Canada!Ltd.!

! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 45!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! Richmond!HillDLangstaff!is!considered!an!Anchor!Hub!that!will!likely!see!significant! redevelopment!as!it!moves!to!integrate!existing!GO!train!service!(Richmond!Hill!Line)!with! the!eastDwest!York!VIVA!Bus!Rapid!Transit!service!(running!along!HWY!7)!along!with!other! local!bus!service!routes.!The!Richmond!Hill!Centre!Bus!Terminal!is!presently!operating! adjacent!to!the!Langstaff!GO!Station.!! ! Project!Statement! ! The!location!of!this!Mobility!Hub!holds!strategic!value!as!it!not!only!is!a!catchDbasin!for!the! heavily!populated!–!and!growing!–!Richmond!Hill,!but!it!also!serves!as!a!potential!connection! point!with!the!communities!directly!above!Toronto,!especially!those!running!north!along! Yonge!Street:!Aurora,!King!City!&!Newmarket.!The!impending!completion!of!the!HWY!7!Bus! Rapid!Transit!service!could!also!establish!Richmond!Hill!Langstaff!as!a!valuable!interchange! location!for!all!of!York!Region.!Also!of!note,!is!the!possible!TTC!extension!of!its!Yonge!line,! beyond!Finch!into!Richmond!Hill,!which!would!of!course!be!of!great!significance.! ! While!there!is!some!land!within!the!station!boundaries!immediately!available!to!redevelop! (mainly!surfaceDlevel!parking!operated!by!GO)!the!existing!builtDform!that!surrounds! Richmond!HillDLangstaff!is!not!complimentary!to!the!Workspace!Hubs!vision.!The!catchment! area!around!the!Mobility!Hub!is!presently!dominated!by!bigDbox!retail!and!the!street!system! consists!of!wide!fourDlane!roadways!that!are!not!inviting!to!either!cyclists!or!pedestrians.!! ! Since!the!area!has!been!designated!as!an!Urban!Growth!Centre,!York!Region!has!undertaken! steps!to!revise!its!Richmond!Hill!Master!Plan!to!allow!for!additional!intensification!and!the! creation!of!a!transitDoriented!community,!however!the!visioning!process!is!still!at!it’s!very! early!stages!and!could!take!a!decade!to!materialize.!! ! The!intentions!are!in!place!politically!to!create!a!mixed!use!neighbourhood,!but!the!material! signs!of!this!change!still!lay!in!wait.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!LongDTerm!(6D10!years)! !

46! !

Centre!for!Social!Innovation!

! 5.3.8.

Markham Centre

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Markham!is!one!of!the!fastest!growing! municipalities!in!Ontario,!home!to!over!310,000! people!covering!212!square!kilometres!of!land.!! More!than!400!companies!are!headquartered!in! Markham!due!to!a!wellDdefined!transportation! and!communication!network,!high!quality! facilities,!a!diverse!and!highly!educated!labour! force!and!proDbusiness!environment.!! With!close!to!900!highD!technology!and!life! sciences!companies,!Markham!is!Canadaâ&#x20AC;&#x2122;s!HighD Technology!Capital.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

301,709! 39.6! 93,202! $79,924! 15.3%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

IBM!Canada!Ltd.! American!Express!(AMEX!Canada!Inc.)! Markham!Stouffville!Hospital! AMD!Technologies!Inc.! TD!Waterhouse!Inc.! The!Miller!Group! CGI!Information!Systems! Town!of!Markham!â&#x20AC;&#x201C;!Civic!Centre! Allstate!Insurance! MMM!Group!

! ! ! ! ! ! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 47!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! Markham!Centre!is!an!Anchor!Mobility!Hub!that!will!integrate!the!existing!Unionville!GO! Train!Station!(Stoufville!Line)!with!planned!VIVA!Hwy!7!Bus!Rapid!Transit!as!well!as!local! bus!routes.!! ! The!Markham!Centre!Mobility!Hub!is!an!essential!component!of!Downtown!Markham,!a! multiDbillion!dollar!development!project!presently!underway!on!the!land!immediately!west! of!the!existing!GO!Station.!The!privatelyDfinanced!Downtown!Markham!development!is! attempting!to!create!a!new!focal!point!to!the!city!of!Markham!that!could!serve!as!both!a! residential!community!and!active!business,!recreational!and!cultural!district!for!the! otherwise!sprawling!city!of!Markham.!! ! Project!Statement! ! Markham!has!both!a!fastDgrowing!population!and!a!large!supply!of!highDtech!employers! (thanks!in!large!part!to!the!longDterm!presence!of!IBM),!making!this!municipality!attractive! to!the!Workspace!Hubs!project.!Additionally!there!is!an!active!local!commitment!in!the!startD up!and!business!acceleration!sector!through!York!RegionDsupported!ventureLab,!who! operate!very!near!by!to!the!Markham!Centre!Mobility!Hub.!! ! On!the!downside,!the!present!built!form!of!Markham!typically!features!lowDdensity!housing,! retail!and!commercial!land!uses,!which!has!lead!to!low!levels!of!mixedDuse!integration.!This! is!important!to!point!out!since!mixedDuse!density!is!noted!to!be!an!important!factor!for! mobile!coworkers!who!are!looking!for!ready!access!to!urban!amenities,!near!to!their!work! environment.!! ! As!the!Downtown!Markham!development!matures!and!the!Markham!Centre!Mobility!Hub!is! better!established,!there!will!likely!be!promising!opportunities!to!locate!a!Workspace!Hub!in! Markham!Centre.!For!now!though,!like!the!other!emerging!downtown!districts!in!the!GTHA,! it!is!a!waitDandDsee!approach!(although!the!process!is!further!along!here!than!in!Vaughan,! Richmond!Hill!or!Pickering).! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!MidDTerm!(4D6!years)!

48! !

Centre!for!Social!Innovation!

! 5.3.9.

Downtown Pickering

! Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Pickering!is!centrally!located!within!the!GTA,!with! direct!access!to!both!Highway!401!and!Highway! 407!ETR!providing!a!convenient!gateway!to! major!markets!across!North!America.!Being!in! close!proximity!to!5!different!entry!points!to!the! United!States,!Pickering!offers!the!ability!to!easily! access!many!cities!across!North!America.! Business!tax!rates!are!amongst!the!lowest!of!the! larger!municipalities!in!Durham!Region.!There! are!approximately!350!acres!of!vacant! employment!land!available!for!development!in! Pickering,!and!a!projected!800!acres!of! employment!land!with!the!development!of!the! Seaton!community,!to!meet!the!needs!of!any! business.!More!than!88%!of!Pickering!residents! between!the!ages!of!24D64!years!of!age!have! completed!a!post!secondary!degree!or!diploma.! Excellent!air!and!rail!services!are!also!available.! Pickering!is!in!close!proximity!to!Pearson! International!Airport,!Billy!Bishop!Island!Airport! and!Oshawa!Municipal!Airport.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

88,721! 40.7! 29,875! $84,595! 1%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Aspect!Retail!Logistics! EcoDTec!Inc.! Hubbell!Canada!LP! Lenbrook!Industries! Municipal!Property!Assessment!Corporation! Nelson!Industrial!Inc.! Ontario!Power!Generation! Purdue!Pharma!Canada! Rogers!Communications! Yorkville!Sound!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 49!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! Downtown!Pickering!is!an!Anchor!Mobility!Hub!for!the!Durham!Region!to!the!east!of!the!City! of!Toronto.!The!location!presently!includes!the!Pickering!GO!Train!Station!(Lakeshore!East! Line)!as!well!bus!bays!for!Durham!Transit.!! ! The!presence!of!large!surfaceDlevel!parking!facilities!at!this!Mobility!Hub!indicate!an! opportunity!to!develop!a!highDordered!interchange!Mobility!Hub,!that!could!accommodate! mixed!uses.!Strategically,!the!area!is!well!positioned!with!immediate!connection!to!HWY!401,! the!impending!conversion!to!twoDway!allDday!service!on!the!GO!Lakeshore!Line!as!well!as!the! hopeful!implementation!of!a!local!Bus!Rapid!Transit!system!(presently!in!the!Environmental! Assessment!stage).!!! ! Project!Statement! ! The!design!intention!of!the!Workspace!Hubs!project!is!to!create!a!network!of!satellite! locations!that!connect!the!GTHA!region!in!all!directions.!This!would!of!course!include!the! Durham!Region,!with!the!urban!centres!of!Pickering,!Ajax,!Whitby,!and!Oshawa!all! representing!large!populations!of!prospective!customers.!! ! Our!research!however!indicates!that!the!regions!of!Peel,!Halton!and!York!presently!have! greater!numbers!of!both!knowledge!workers!and!telecommuters!than!does!Durham!(this!is! supported!by!telecommuting!statistics!uncovered!by!Metrolinx’s!Commuter!Survey,!2011).! Therefore,!it!would!be!our!recommendation!to!consider!opening!a!Durham!location!toward! the!latter!stages!of!the!expansion!cycle,!allowing!for!the!numbers!of!teleworkers!to!grow!in! this!part!of!the!region.!When!that!time!come,!Downtown!Pickering!may!well!have!matured! into!a!mixed!use!community!with!an!increased!local!demand.! ! The!municipality!expects!growth!of!5,000!jobs!and!5,000!residents!in!Downtown!Pickering! over!the!next!20!years!and!their!priorities!for!accommodating!this!growth!involve!residential! and!commercial!intensification!within!a!sustainable,!vibrant,!walkable!‘downtown’! environment:!all!design!objectives!that!would!support!a!Workspace!Hub!location.! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!LongDTerm!(6D10!years)!

50! !

Centre!for!Social!Innovation!

! 5.3.10. Toronto: Downtown CBD !

Locational!Advantages!Statement!! (from'DTZ'Barnicke)' ! Toronto!is!an!international!centre!for!commerce,! research!and!innovation.!With!low!operating!costs,! reduced!security!risks!and!the!availability!and!skill! of!the!labour!force!together!with!access!to!the! globe’s!most!lucrative!markets!have!made!Toronto! the!‘nearshore’!choice!for!many!companies.!The! City!of!Toronto’s!economy!comprises!11%!of! Canada’s!GDP,!with!Toronto’s!GDP!topping!$144! billion!in!2011.!TorontoDbased!businesses!export! over!$70!billion!in!goods!and!services!to!every! corner!of!the!globe!with!retail!sales!of!$62!billion! annually.!On!an!international!scale,!Canada!has!the! lowest!overall!business!costs!in!the!G7!as!reported! in!KPMG’s!Competitive!Alternatives!2010.! Toronto’s!more!than!84,500!businesses!choose! from!a!large,!highly!skilled,!multilingual!workforce! of!1.4!million!people!–!one!sixth!of!the!country’s! workforce.!64%!of!Toronto!residents!between!the! ages!of!25!and!64!have!a!postDsecondary!education.! Demographic!Summary!(2011!census)! ! Total!Population! Median!age!of!population! Total!private!dwellings! Average!household!income!(2006)! 2006!to!2011!population!change!!

2,615,060! 39.2! 1,107,851! $52,833! 4.5%!

! Largest!Employers!(Office!Users)! ! 1! 2! 3! 4! 5! 6! 7! 8! 9! 10!

Toronto!Transit!Commission! Royal!Bank!of!Canada! Canadian!Imperial!Bank!of!Commerce! TorontoDDominion!Bank! Scotia!Bank! BMO!Nesbitt!Burns!Inc.! Toronto!District!School!Board! University!of!Toronto! Government!of!Ontario! City!of!Toronto!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 51!

Section!Five!!Location!Profiles!

Commercial!Office!Rental!Rates!(November!2012)! ! !$60.00!! !$50.00!! !$40.00!!

($25.05((

!$30.00!! !$20.00!! !$10.00!! !$#!!!!

($10.50((

($10.62((

($9.85((

($14.83((

($17.64((

($14.99((

Hamilton!

Oakville!

Burlington!

($11.62(( ($16.60((

($15.52((

($16.42((

($10.60(( ($12.12(( ($23.30((

($15.06((

($10.12((

($14.19((

($12.28((

Brampton! Mississauga! Vaughan! Markham!&! Pickering! City!Centre! Richmond!Hill!

Avg.!Asking!Net!Rent!psf!

($14.02(( ($25.08((

Toronto! (Core)!

GTA!Average!

Avg.!Addi:onal!Rent!psf!

' Source:'DTZ'Barnicke' ! Mobility!Hub!Status! ! The!Downtown!Toronto!Mobility!Hub!is!a!very!different!type!of!Hub!than!any!of!the!others!in! the!GTHA.!Logically,!it!is!identified!as!an!Anchor!Hub,!with!the!multiDmodal!Union!Station! serving!as!the!regionâ&#x20AC;&#x2122;s!busiest!interchange!station,!and!one!which!is!undergoing!significant! renovations!to!allow!for!expanded!operations.! ! The!Downtown!Toronto!Hub!services!the!TTC,!GO!(multiple!bus!and!train!lines),!VIA,!in! addition!to!active!transport!routes!(PATH!network!and!city!bicycle!routes).!Targeted!for! 2015!opening,!Downtown!Toronto!will!also!be!connected!to!Pearson!Airport!through!the! UnionDPearson!AirDRail!Link.!! ! Project!Statement! ! With!full!regional!coverage!as!a!central!objective!to!this!project,!establishing!a!central! Toronto!location!would!be!a!key!component!of!that!network.!A!downtown!location!has! strategic!relevance!for!many!reasons.!! ! Firstly,!a!large!number!of!freelance!workers!support!businesses!that!are!themselves!located! in!the!downtown!central!business!district,!so!proximity!to!those!related!businesses!would!be! a!strong!attractor.!Secondly,!it!has!been!our!experience!that!there!is!a!high!concentration!of! social!entrepreneurs!who!live!downtown!and!would!find!the!Workspace!Hub!to!be!an! attractive!work!home!base.!And!finally,!as!a!networked!benefit!to!the!members!who!would! normally!work!out!of!a!suburban!location!close!to!their!home,!a!Downtown!Toronto!location! could!be!extremely!beneficial!for!occasions!when!those!members!are!conducting!business!in! Toronto!â&#x20AC;&#x201C;!the!facility!would!be!available!to!them!to!host!meetings,!or!spend!occasional! workdays.!! ! Naturally,!commercial!rent!in!Downtown!Toronto!is!the!highest!in!the!region!and!could!pose! a!limitation!to!prime!locations.!However,!locations!on!the!fringes!of!the!downtown!could!and! would!be!carefully!considered!to!mitigate!against!high!commercial!rent.!! ! Overall!Suitability!For!Project!! (Low/None,!Immediate,!ShortITerm,!MidITerm!or!LongITerm):!!Immediate!

52! !

Centre!for!Social!Innovation!

Section Summary ! Of!the!ten!Mobility!Hub!locations!we!reviewed!for!this!analysis,!we!determined!that!the!only! locations!that!were!immediately!suitable!for!the!Workspace!Hubs!to!locate!in!either! immediately!or!in!the!shortDterm!would!be!Hamilton,!Brampton!and!Downtown!Toronto.! This!is!largely!due!to!the!existing!mix!of!urban!amenities!that!are!presently!in!place!in!these! locations,!compared!to!the!other!emerging!or!planned!suburban!centres.!! ! The!three!Mobility!Hub!locations!that!we!feel!have!midDterm!possibilities!for!this!project!are! Midtown!Oakville,!Markham!Centre!and!Mississauga!City!Centre.!There!is!much!development! progress!that!needs!to!take!place!in!each!of!these!locations,!but!we!feel!that!the!conditions! are!in!place!that!should!produce!interesting!mixedDuse!communities!that!could!be!expected! to!support!Workspace!Hub!locations!toward!the!later!half!of!this!decade.!! ! Vaughan,!Richmond!HillDLangstaff!and!Pickering!are!all!longDterm!possibilities!in!our!view.! The!conditions!are!all!forming!for!these!Anchor!Hub!locations!–!especially!in!Vaughan!–!but! there!is!still!a!long!way!to!go!for!each!potential!location.!! ! Certainly!there!are!other!considerations!to!weigh!out!beyond!urban!amenities!and!the! presence!of!mixed!use.!Specifically,!we!need!to!consider!whether!the!demand!will!be! sufficient!to!support!a!Hub!location.!To!that!end,!we!feel!that!we!have!only!chosen!locations! for!this!analysis!that!we!feel!would!have!the!preconditions!to!support!a!Workspace!Hub,! most!importantly!a!combination!of!residential!density!combined!with!high!levels!of! commuter!frustration.!Perhaps!the!exception!may!have!been!Burlington,!which!upon!further! analysis!was!determined!not!to!be!a!suitable!location!to!pursue.!! ! Thinking!beyond!this!list!of!Mobility!Hubs!is!also!a!possibility.!Places!like!Guelph,!KitchenerD Waterloo!or!even!BloorDDundas!West!in!Toronto!could!all!be!potential!Workspace!Hub! locations!and!each!has!certain!opportunities.!However,!we!wanted!to!begin!by!evaluating!the! primary!Hub!locations!that!had!the!highest!strategic!locational!value.! ! Should!a!project!proceed,!we!feel!that!a!‘first!phase’!of!four!locations!could!be!opened!within! five!years:!Hamilton,!Brampton,!Toronto!&!Oakville.!A!‘second!phase’!could!then!be!planned! and!financed,!and!could!include!a!selection!from!the!following!locations,!should!development! conditions!unfold!positively:!Mississauga!City!Centre,!Markham!Centre,!Vaughan,!Richmond! HillDLangstaff!and!Pickering.! !

! ! ! ! ! ! ! ! ! ! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 53!

Section!Six!!Financial!Summary!

6. FINANCIAL SUMMARY ! With!the!business!model!in!place,!along!with!a!scan!of!the!municipalities!and!market!rate!real! estate!completed,!we!were!able!to!move!on!to!building!a!test!scenario!that!would!allow!us!to! examine!the!financial!implication!of!the!full!vision.!In!order!to!execute!this!stage!of!the!project,! we!enlisted!the!assistance!Christopher!Chen!(M.!Fin,!CMA)!to!act!as!our!financial!consultant.! Together,!we!scrutinized!all!available!financial!material!from!the!Centre!for!Social!Innovationâ&#x20AC;&#x2122;s! operations!and!location!startDup!financing!to!give!us!baseline!inputs!for!all!revenues!and! expenses.!From!this!starting!point,!we!were!then!able!to!construct!a!separate!Workspace!Hubs! model,!based!on!assumptions,!prices!and!scenarios!separate!from!CSI!that!all!flowed!into!the! representative!work!that!follows.!!! ! Having!said!this,!this!study!isnâ&#x20AC;&#x2122;t!intended!to!serve!as!a!detailed!business!plan!document,!but! rather!a!generalized!overview!of!several!aspects!of!the!concept,!including!a!financial!scenario! test.!!The!financial!modeling!is!intended!to!serve!as!a!starting!point!for!discussion!and!if!it!a! project!was!to!be!developed,!then!a!more!rigorous!financial!analysis!would!need!to!be! performed.!

6.1. Model Overview ! The!financial!model!below!represents!an!abstraction!of!our!research,!meant!to!give!a! representative!illustration!of!the!financial!realities!of!this!vision.!In!this!simplified!scenario! (not!adjusted!for!inflation),!certain!fineDgrain!details!have!been!averagedDout!in!order!to! enable!the!necessary!illustration.!Lease!rates!for!instance!have!been!averaged!out!across!the! GTHA!(separating!only!the!City!of!Toronto!from!the!suburban!municipalities)!due!to!the! uncertainty!around!the!suitable!timing!and!readiness!of!each!location.!! ! In!this!model,!we!examined!the!impact!of!opening!eight!locations!over!ten!years:!seven! located!in!suburban!municipal!settings,!and!one!central!location!in!Toronto.!!

6.2. Site and Administration Approach ! While!each!Workspace!Hub!location!would!be!staffed!with!a!General!Manager!along!with!a! team!of!Community!Animators!(number!of!Animators!would!change!depending!on!the!size!of! the!location),!our!design!concept!for!the!project!features!a!supporting!administrative!team! that!would!coordinate!the!strategic!activities!of!the!entire!business!from!a!central!location.! This!group!would!be!responsible!for!meeting!business!objectives!of!the!corporation!and! executing!the!overall!vision!of!the!project,!and!would!support!all!locations.!! ! This!administrative!group!would!involve!the!following!roles:! ! ! Chief!Executive!Officer! ! Chief!Operating!Officer! ! Chief!Financial!Officer! ! Director!of!Leasing! ! Director!of!Marketing! ! Director!of!IT! ! Accounting!&!Administrative!Manager! ! !

54! !

Centre!for!Social!Innovation!

6.3. Modeling by Size: 5, 15 and 30,000 square feet ! From!municipality!to!municipality,!the!availability!of!space!as!well!as!the!local!demand!will! ultimately!determine!the!size!of!the!space!we!open!with.!However!for!projecting!useful! revenues!and!expenses!in!our!model,!it!was!important!to!establish!norms!or!preDset! assumptions!for!a!range!of!size!types.! ! When!considering!certain!financial!inputs!â&#x20AC;&#x201C;!such!as!staffing!levels!or!the!composition!of! offices!to!private!desks!to!common!areas!that!will!ultimately!make!up!the!space!â&#x20AC;&#x201C;!there!is! significant!fluctuation!at!different!size!categories:!the!relationship!is!not!a!linear!one.! Therefore,!we!focused!our!model!around!three!location!sizes:!5,000,!15,000!and!30,000! square!feet.!All!input!considerations!were!based!around!these!three!size!categories.!

6.4. Model Inputs: Revenue Assumptions ! The!vast!majority!of!the!business!revenue!in!the!Workspace!Hubs!model!from!office/desk! rental!(commonly!up!to!85%).!The!remaining!revenue!is!generated!from!additional!payDperD use!services!(from!things!such!as!photocopy!fees,!reserved!mailboxes)!and!room!booking! rentals!(both!for!meetings!and!special!events).!We!have!assumed!for!this!model!that!the! venture!would!be!a!registered!as!a!notDforDprofit!and!that!revenues!accrued!would!not!be! subject!to!commercial!income!tax.! ! In!order!to!analyze!the!expected!revenue!from!office/desk!rental,!we!needed!to!first! establish!the!composition!of!the!space!at!each!size!type.!Available!space!uses!include:!private! office;!private!desk;!hot!desk!(occasional!membership);!meeting!room;!and!common!area.!! ! Experience!gained!from!operations!with!CSI!has!been!relied!on!here!to!ensure!that!the! correct!mix!is!created!that!would!foster!the!kind!of!interactions!that!we!would!be!aiming!for.! We!have!learned!that!different!people!and!projects!have!different!workspace!needs.!And! although!the!space!is!nonDrevenue!generating,!every!location!needs!ample!shared!space.! Space!to!stretch!out,!mix!and!interact!is!essential.!(If!this!feels!like!a!corporate!office,!we!will! lose!people!very!quickly.)!Permanent!desk!and!hot!desk!members!bring!a!high!level!of! energy!and!a!strong!willingness!to!collaborate.!Private!offices,!while!best!for!ensuring! dependable!revenue!and!lowing!exposure!to!turnover,!can!reduce!the!collaboration! potential,!and!a!location!with!only!hot!desk!members!doesnâ&#x20AC;&#x2122;t!allow!for!community!roots!to! grow.!! ! All!this!to!say!that!there!has!been!an!artful!methodology!used!to!arrive!at!the!following! spatial!arrangements:!

! !

5,000!sq!ft!

15,000!sq!ft!

30,000!sq!ft!

Private!Offices!

0%!

30%!

40%!

Private!(Dedicated)!Desks!

35%!

15%!

Hot!Desks!

35%!

15%!

Meeting!Rooms!

10%!

15%!

Shared!Space!

20%!

25%!

15%!

! Following!the!spatial!distribution,!we!formulated!per!square!foot!revenue!estimates!for!each! office/desk!rental!category,!based!on!expected!chargeDrates.!! ! Our!research!has!lead!us!to!set!the!monthly!rate!for!a!private!dedicated!work!desk!at! $500/month.!Using!this!factor,!we!can!then!price!a!typical!private!office!(while!sizes!of!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 55!

Section!Six!!Financial!Summary!

private!offices!can!range,!$1,200/month!for!a!135!sq!ft!!space!was!established)!as!well!as! estimating!an!average!hot!desk!membership!to!generate!$250/month.!Hot!desk!–!or! temporary!membership!–!packages!would!be!offered!in!two!to!three!tiers!and!we!assume! that!in!full!occupancy,!there!would!be!2.2!memberships!sold!for!every!hot!desk!seat.!! ! Accordingly,!the!following!per!square!foot!norms!can!be!extracted:!! ! ! Private!Offices!! (Varying!Sizes)! Private!(Dedicated)! Desks! Hot!Desks!! (Varying!Packages)!

Rate!Per! Month!

Avg!Unit! Size!! (sq!ft)!

Projected! Revenue/!Sq!Ft! (per!month)!

Projected! Revenue!/!Sq!Ft! (per!year)!

$1200!

135!

$8.89!

$106.67!

$500!

80!

$6.25!

$75.00!

$250*!

50!

$11.00**!

$132.00!

*!different!Hot!Desk!packages!would!be!offered!! **!using!a!factor!of!2.2!Hot!Desk!members!for!every!available!Hot!Desk!space!

! These!projections!allowed!us!to!establish!the!full!occupancy!revenue!potential!for!each! prospective!Workspace!Hub!location.!For!the!purposes!of!our!model,!we!established!that!by! year!four,!each!suburban!location!would!reach!a!‘mature’!growth!status,!maintaining!an! average!annual!occupancy!of!85%.!The!Toronto!location!was!set!at!90%!occupied!for!its! mature!status.!For!years!one!through!three,!we!applied!occupancy!percentages,!beginning!at! 50%!for!year!one,!growing!through!the!first!four!years!to!reach!its!mature!status!by!year! four.!! ! Finally,!each!location’s!first!year’s!revenues!(and!operating!expenses)!in!the!model!have! been!prorated!to!nine!operating!months,!allowing!for!three!months!of!location!leasehold! improvements!and!setDup!prior!to!opening.!

6.5. Model Inputs: Expense Assumptions ! The!financial!model!for!the!Workspace!Hubs!project!includes!three!main!expense!categories:! new!location!startDup!costs;!location!operating!expenses,!and;!administrative!support!fees.! We!have!tracked!each!expense!separately,!recognizing!that!each!area!might!have!different! opportunities!for!financing!and/or!partnership!cost!relief.!!! ! Gross!startDup!costs!were!calculated!based!on!a!projection!of!$50.00!per!sq!ft!in!leasehold! improvements,!furnishings!and!equipment!expenses,!plus!costs!related!to!startDup!marketing! and!dedicated!staffing!required!for!the!location!launch.!In!the!model!scenario,!these!total! startDup!costs!were!assigned!to!the!year!that!the!location!opened!only.! ! Operating!expenses!for!each!location!are!divided!into!general!operating!expenses,!staffing! and!rent.!While!some!coworking!outfits!are!short!on!support!services,!the!CSI!model!(which! the!Workspace!Hubs!approach!is!based!on)!prominently!features!an!expanded!role!for! location!staff,!particularly!in!the!form!of!Community!Animators.!While!we!would!plan!to! transfer!much!of!the!business!processing!duties!to!the!administrative!support!team,!a! location!General!Manager!plus!Community!Animators!are!essential!to!ensuring!a!local! community!takes!root!at!the!Workspace!Hub.!When!operating!small!locations!(5,000!square! feet!for!example),!the!impact!of!this!investment!on!staffing!translates!into!a!high!cost!of! doing!business,!an!investment!that!can!be!offset!as!the!location!size!increases,!decreasing!the! per!square!foot!operating!cost!estimates.!(see!chart!below!for!illustration!of!projected! operating!costs!by!size!type)! !

56! !

Centre!for!Social!Innovation!

! !

Projected!Annual!Per!Square!Foot!Operating! Costs!(By!Size!Type)! !$60.00!! !$50.00!! !$40.00!!

!$53.47!!

!$48.93!! !$38.45!!

!$30.00!!

!$35.50!!

!$20.00!! !$10.00!! !$D!!!! 5,000!GTHA!

15,000!GTHA!

30,000!GTHA! 15,000!Toronto!

To!illustrate!this!further,!the!following!diagrams!show,!the!impact!that!staffing!costs!have!on! overall!operating!expenses!and!underscore!the!attractiveness!of!a!larger!space!for! decreasing!the!overall!operating!cost!burden!to!the!site.!! ! Distribution!of!Projected!Operating!Costs!(By!Size!Type)!

! 5,000!sq!ft!GTHA!

Rent! 57%!

15,000!sq!ft!GTHA!

General! Operating! Expenses! 7%!

General! Operating! Expenses! 8%!

Stafzing! 19%!

Stafzing! 36%!

Rent! 73%!

!!!!!!!!!!!!

! ! 30,000!sq!ft!GTHA!

15,000!sq!ft!! Toronto!

General! Operating! Expenses! 8%!

Stafzing! 13%!

Stafzing! 14%!

Rent! 79%!

General! Operating! Expenses! 6%!

Rent! 80%!

!!!!!!!!!!!!!

As!mentioned!above,!the!administrative!support!team!would!be!responsible!for!the!overall! business!operations!of!the!enterprise.!The!support!team!would!be!housed!out!of!a!central! location!(logically!eventually!in!one!of!the!central!Hub!locations)!and!would!feature!the! following!team!members:!!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 57!

Section!Six!!Financial!Summary!

! !

Project!Launch:!! ! CEO! ! CFO! ! Director!of!Leasing!! ! Director!of!Marketing! Year!Three:! ! ! COO! ! ! Director!of!IT! Year!Four:! ! Accounting!and!Administration!Manager!

! In!addition!to!staff!costs,!general!business!expenses!such!as!incorporation,!legal!fees,! marketing,!professional!services!and!web!development!have!gone!into!the!annual!expense! projections.!!

6.6. Model Inputs: Grants & Sponsorships The!financial!model!shown!assumes!that!there!are!no!grants,!partnerships!or!sponsorships! either!to!offset!expenses!or!supplement!revenues!however!these!contributions!will!likely!be! essential.!A!model!showing!fullDcosts!can!allow!for!the!impact!of!such!grants!or!sponsorships! to!be!measured!in!the!future,!should!access!to!those!opportunities!become!available.!!

6.7. Phasing ! Our!design!model!for!the!Workspace!Hubs!network!would!feature!an!ideal!network!of!eight! locations,!opening!in!two!fiveDyear!phasing!â&#x20AC;&#x2DC;roundsâ&#x20AC;&#x2122;.!Through!the!first!five!years,!four! locations!would!be!opened:!one!in!Toronto!and!three!in!the!Greater!Toronto!and!Hamilton! Area!(GTHA).!Over!the!second!fiveDyear!phase,!four!additional!GTHA!locations!would!be! added!to!the!network.!! ! While!it!might!make!sense!to!open!a!network!of!all!30,000!square!foot!locations!in!order!to! maximize!revenues!and!social!impact,!we!understand!that!it!may!be!difficult!to!generate!the! necessary!demand!for!membership!in!each!municipality.!Therefore!we!have!included!a!mix! of!sizes!in!our!model.!The!following!phasing!plan!has!been!adopted:!

! Phase'One' Location!One!

Year'One'

GTHA'

15,000'sq'ft'

Location!Two! Location!Three! Location!Four! Phase'Two' Location!Five!

Year'Two' Year'Three' Year'Four'

GTHA' GTHA' Toronto'

5,000'sq'ft' 30,000'sq'ft' 15,000'sq'ft'

Year'Six'

GTHA'

5,000'sq'ft'

Location!Six! Location!Seven! Location!Eight!

Year'Seven' Year'Eight' Year'Nine'

GTHA' GTHA' GTHA'

30,000'sq'ft' 15,000'sq'ft' 5,000'sq'ft'

! ! !

58! !

Centre!for!Social!Innovation!

6.8. Financial Outlook: Years 1-10 (not adjusted for inflation) ! ! ! ! ! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 59!

Section!Six!!Financial!Summary!

6.9. Financial Outlook: Years 11-20 (not adjusted for inflation) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

60! !

Centre!for!Social!Innovation!

Section Summary ! The!major!financial!burden!of!any!startDup!enterprise!is!typically!found!in!capitalizing!the! early!stages!of!the!organization.!During!this!startDup!phase,!costs!are!generally!high,!while! revenues!are!either!low!or!still!on!the!horizon.!This!project!is!no!exception,!and!due!to!the! number!of!locations!envisioned!to!open!in!succession,!this!early!hurdle!is!even!more! pronounced.! ! By!plotting!out!the!opening!of!eight!separate!work!centres!over!a!ten!year!period,!the!project! ensures!that!the!first!ten!years!will!be!weighed!down!in!a!considerable!amount!of!red!ink.! Due!to!the!expansion!model!we!feel!is!required!to!make!the!concept!work,!it!is!not!until!the! 13th!year!that!the!running!net!position!is!projected!to!yield!positive!a!positive!cash!flow,!and! this!is!not!taking!into!consideration!the!debt!financing!structure,!which!will!push!the! timetable!for!positive!cash!flow!even!further!afield.!Just!how!far!will!depend!on!how! attractive!debt!financing!can!be!secured.!!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 61!

Section!Seven!!Implementation:!Options!Analysis!

7. IMPLEMENTATION: OPTIONS ANALYSIS ! Taking!into!account!the!significant!financial!investment!that!would!be!needed!to!finance!the! startDup!phase!of!this!project,!it!is!appropriate!to!consider!various!options!for!implementing!the! vision:!in!whole!or!in!part.!The!primary!vision!of!the!project!has!been!well!articulated!in!the! preceding!pages!and!its!full!implemented!would!have!the!greatest!potential!for!impact.! However,!parts!of!the!vision!could!in!theory!be!integrated!with!other!actors!in!the!region!to! realize!some!of!the!central!objectives.!!

7.1. Workspace Hubs Independent Vision This!option!guarantees!the!most!control!around!executing!the!vision!and!shaping!the!growth! of!the!entire!project.!In!exchange!for!this!control,!comes!the!full!risk!and!responsibility!of!the! project,!including!the!financial!risk,!which!is!not!insignificant.!A!financing!platform!would! need!to!be!secured,!and!with!the!longDterm!payback!nature!of!the!project,!would!have!to!be! inventive.!Provincial!and!local!government!assistance!would!likely!be!essential.! !

! Strategic!Fit!

Interdependencies!

D!Yes,!entirely!selfDdirected! D!May!still!need!to!find!a!partner!to!offer! incubation!/!business!acceleration! services!(if!desired)! !

D!Economic!development!with!local! municipalities! D!Regional!innovation!potential!with! provincial/regional!government!

Business/Operational!Impact!

Profitability!Impact!

D!Ability!to!scale!and!replicate! D!No!indirect!channels,!all!selfDdirected! D!Ability!to!“call!own!shots”! D!Maximum!risk!

D!Potential!government!incentives! D!Likely!to!be!organic!expansion! possibilities! D!No!associated!fees!(ie:!franchise)! D!Higher!overhead!costs!(not!sharing!with! other!actors)! !

7.2. Secure Major Corporate Partnership ! Should!the!above!option!be!an!unattractive!proposition,!it!is!not!an!unreasonable!strategy!to! pursue!a!partnership!with!a!major!corporate!entity!that!has!aligned!missions.!The!“future!of! work”!vision,!around!which!the!Workspace!Hubs!project!is!based,!could!hold!a!significant! level!of!appeal!for!major!corporations!who!are!looking!for!a!marketing!vehicle,!most! obviously,!companies!involved!in!information!technology,!networks!and! telecommunications.!Cisco!Systems!Inc!(strategic!contributors!to!this!project)!would!be!one! logical!consideration,!as!would!Citrix,!as!similar!network!systems!provider!with!consumer! product!line!offerings!geared!at!small!business!and!entrepreneurs.!! !

62! !

Strategic!Fit!

Interdependencies!

D!Qualified!Yes!(partner!would!need!to! have!aligned!missions)! D!Expanded!global!reach!outside!of!own!

D!Could!collaborate!on!shared!operations! D!Possibility!that!corporate!partner!could! assist!with!incubation!activities!

Centre!for!Social!Innovation!

! marketing!abilities! D!Would!need!a!clear!agreement!on! expansion!scale! D!Risk!of!diluting!social!mission/purpose!if! relationship!is!not!clearly!defined!and! articulated! Business/Operational!Impact!

Profitability!Impact!

D!Attractive!because!of!possible!assistance! D!Shared!risk! with!upfront!capital!requirements! D!Shared!reward! D!If!is!a!technical/telecommunications! provider,!corporate!partner!could!provide! service!tools!for!operation!

7.3. Real Estate Owner/Developer Partnership ! The!Workspace!Hub!locations!would!be!centres!for!ideas,!culture!and!community,!bringing!a! sense!of!place!to!any!location.!The!spinDoff!benefits!of!a!Workspace!Hub!to!a!property!owner! would!be!significant.!Should!we!be!able!to!engage!with!a!developer!or!real!estate!owner!who! has!a!similar!longDterm!vision!of!creating!meaningful!places!across!the!region’s!Mobility! Hubs,!we!could!seek!to!secure!belowDmarket!lease!rates!in!exchange!for!our!growth!impact.! ! Strategic!Fit!

Interdependencies!

D!Yes,!owner/developer!similarly! interested!in!local!growth!impact! D!Possibly!to!jointly!curate!a!supportive! mix!of!tenants!in!building!(ex:!health!and! wellness!services,!cafes,!restaurants,!etc)! !

D!Owner/developer!could!provide! assistance!with!rent!and!space!fitDout! costs,!consult!regarding!site!and!building! uses! D!Workspace!Hub!could!provide! owner/developer!with!new!stream!of! tenants!as!members!grow!too!large!for! Workspace!Hub!! !

Business/Operational!Impact!

Profitability!Impact!

D!Could!provide!a!framework!for! scalability!and!replicability!(should!a! partner!be!sourced!who!has!real!estate! holdings!at!other!Mobility!Hub!locations)! !

D!Potential!for!decreased!operating!costs! D!Would!likely!forego!some!control,!risk! and!reward!

7.4. Government Sponsorship / Government Ownership ! Under!nearly!any!scenario!imaginable!(including!the!above!example!options),!the!Workspace! Hubs!platform!would!need!to!take!advantage!of!any!available!government!incentive! programs!that!are!geared!to!fostering!grassroots!innovation,!sustainable!communities!and! local!economic!development.!Such!programs!as!the!ones!sponsored!federally!by!the! Federation!of!Canadian!Municipalities!(the!‘Green!Municipal!Fund’!is!available!for!programs! that!benefit!sustainable!infrastructure!creation),!or!the!Canada!Innovation!Fund!(several! available!funding!platforms!exist!here!that!could!apply,!such!as!the!‘CollegeDIndustry! Innovation!Fund’!or!the!‘Exceptional!Opportunities!Fund’)!would!certainly!need!to!be!

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 63!

Section!Seven!!Implementation:!Options!Analysis!

explored!for!suitability!under!any!arrangement,!along!with!other!provincial,!regional!and! municipal!incentive!programs!that!exist.!! ! In!taking!this!idea!one!step!further,!the!Workspace!Hubs!platform!could!be!presented!to!an! interested!government!administrative!division!purely!as!a!local!economic!development! platform!for!full!government!ownership!of!project.!Program!design,!concept!development,! etc!could!be!handled!(and!possibly!branded)!through!the!Centre!for!Social!Innovation,!while! the!financial!responsibility!housed!within!the!interested!government!division.!In!exchange,! the!Workspace!Hubs!could!be!used!by!that!government!agency!to!promote!job!creation,! crossDindustry!collaboration,!and!community!development!across!the!region.!! ! It!is!conceivable!that!suitable!space!in!real!estate!properties!already!publiclyDowned!could!be! found!for!such!a!governmentDled!arrangement,!whether!locating!in!central!library!branches! or!future!Metrolinx!Mobility!Hub!station!infrastructure.!Meanwhile,!other!complimentary! governmentDled!activities!(namely!the!work!of!Regional!Innovation!Centres)!could!be! brought!together!to!operate!in!the!one!place.! ! Strategic!Fit!

Interdependencies!

D!Yes! D!Could!provide!complementary! accelerations/incubation!services! D!Potential!expanded!reach! D!Could!be!part!of!a!“new!era”!of!public! facilities!

D!Space!availability! D!Could!work!with!local!economic! development!offices!and/or!Regional! Innovation!Centres!who!hold!strong!local! relationships!

Business/Operational!Impact!

Profitability!Impact!

D!Provides!a!potential!indirect!sales! channel!for!Workspace!Hubs! D!Scalable!and!replicable!across!other! regions! D!More!uncertain!timelines!

D!Major:!no!longer!likely!in!drivers’!seat! !

7.5. Cultivate a Regional Network Among Locally-Owned Coworking Centres

64! !

! According!to!the!recent!survey!conducted!by!GermanDbased!coworking!website! DeskMag.com!(published!March!2013),!in!a!little!more!than!one!decade,!coworking!has! grown!to!include!100,000!people!in!2,500!coworking!centres!worldwide,!with!an!estimated! 4.5!new!workspaces!launching!each!day.!The!regional!market!of!the!GTHA!presents!a! considerable!opportunity!for!coworking!expansion!and!while!the!emergence!of!coworking! spaces!outside!of!the!central!part!of!Toronto!has!been!slow!to!this!point!(see!Sec.!2.5.)!we! feel!that!strongly!that!spaces!will!inevitably!open!up!in!regional!suburban!centres,!wherever! the!market!conditions!allow.!! ! And!while!we!feel!strongly!about!the!transformative!potential!of!a!regional!network!of! shared!workspaces,!perhaps!it!is!not!feasible!for!one!organization!to!own!and!oversee!the! entire!operation.!Instead!of!executing!an!expansion!of!multiple!workspaces!ourselves,!a! different!direction!that!the!Workspace!Hubs!project!could!move!in!would!be!to!act!as!a! support!agency!to!the!strategic!creation!of!locallyDowned!and!operated!coworking!centres.!! ! !

Centre!for!Social!Innovation!

! Under!this!arrangement,!Workspace!Hubs!(or!the!real!estate!&!consulting!division!of!CSI)! could!provide!the!following!services!and!roles:!! ! ! support!local!startDup!initiatives!to!build!shared!spaces!by!consulting!on!concept! development,!service!model!and!mapping!out!access!to!grants,!sponsorships,!etc! ! connect!coworking!spaces!through!a!premium!interoperable!service!offering! ! provide!community!animation!assistance!and!guidance!in!neighbourhood!development! activities! ! provide!technical,!educational!and!eventDbased!services! ! establish!an!accreditation!platform!for!coworking!centres! ! explore!the!creation!of!shared!technology!

Municipalities!and!government!partners!could!create!incentives!(Section!37,!below!market! rents!or!paying!for!capital!costs)!to!attract!the!creation!of!shared!spaces!in!strategic!locations! to!reinforce!a!vibrant!community!vision.!!Although!a!network!would!present!its!own!costs,!it! would!support!local!entrepreneurship!and!could!potentially!avoid!high!management! overhead!costs.! ! In!effect,!the!Workspace!Hubs!project!would!become!a!vision!(networked!shared!spaces)!as! opposed!to!a!company!(stand!alone!and!dominant).! Strategic!Fit!

Interdependencies!

D!Qualified!Yes! D!Fits!with!hyperDlocal!theme!as!more! ownership!is!held!locally! D!Lose!control!of!specific!vision!within! each!regional!operation! !

D!would!be!dependent!on!sustainable! success!of!multiple!shared!work!centres! D!each!site!would!be!owned!and!operated! locally!while!Workspace!Hub!vision!is! regional!connection!point!and!service! provider! !

Business/Operational!Impact!

Profitability!Impact!

D!Structured!to!readily!scale!and!replicate! across!region!!

D!significantly!reduces!financial!risk!by! focusing!on!service!provision! D!could!be!expanded!enlarged!beyond! GTHA!to!increase!profit!potential!! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 65!

Section!Eight!!Conclusions!and!Recommendations!

8. CONCLUSIONS & RECOMMENDATIONS ! When!we!set!out!on!this!investigation,!we!wished!to!test!two!things.!One,!is!the!concept!valid! and!worthwhile?!And!secondly,!is!it!financially!viable?! ! Does!the!idea!make!sense?!We!believe!the!answer!to!that!is!still!only!a!qualified!yes,! assuming!that!the!Mobility!Hub!network!â&#x20AC;&#x201C;!including!all!the!development!targets!â&#x20AC;&#x201C;!become!a! reality.!We!believe!that!developing!meaningful,!dense,!mixedDuse!districts!around!suburban! transit!nodes!is!going!to!be!a!key!factor!in!limiting!sprawl!and!achieving!a!more!equitable,! sustainable!GTHA!region.!And!as!technology!continues!to!enable!footloose!mobility!for! knowledge!workers!and!entrepreneurs!alike,!we!feel!that!demand!will!be!high!for!workspace! that!is!both!close!to!where!people!live!and!wellDconnected!to!the!rest!of!the!region.!We! acknowledge!that!we!have!been!slightly!disappointed!by!the!lack!of!enthusiasm!we!felt!from! our!corporate!interviewees!around!justifying!subsidizing!employees!to!work!at!a! hypothetical!Workspace!Hub,!however!we!feel!that!these!attitudes!are!certainly!subject!to! change!over!time.! ! Secondly,!will!this!make!any!money?!The!answer!to!that!is!potentially!another!question:!how! patient!are!you?!(And!how!much!faith!do!you!have!in!the!vision!enduring!over!time?)!The! ongoing!capital!investment!required!to!open!several!locations!over!a!period!of!successive! years,!means!that!the!payoff!on!this!investment!is!going!to!be!several!years!out.!With!a!long! payback!horizon,!you!need!to!be!sure!that!you!can!depend!on!the!model!sustaining!itself!long! enough!for!the!investment!to!pay!off.!This!means!looking!ahead!15D20!years!and!making!a! prediction!that!the!forecasts!around!work!habits!and!regional!development!patterns!are! dependable!enough!that!the!vision!will!endure.!This!farDhorizon!reality!of!the!financial! picture!is!a!concern.! ! The!most!exciting!aspect!of!the!Workspace!Hubs!concept!is!that!it!appears!to!be!in!concert! with!a!number!of!other!important!and!developing!trends.!Namely:!optimizing!the!use!of! technology;!envisioning!the!modern!office!and!work!experience;!contributing!to!the! reduction!in!congestion!and!associated!carbon!emissions;!rebalancing!work/life! opportunities;!and!reshaping!the!suburbs.!With!these!bigDvision!themes!all!developing!at! different!rates,!the!most!exciting!aspect!of!the!concept!is!also!the!most!challenging!one:!how! to!get!the!timing!right.!Clearly,!we!are!a!still!few!years!away!from!many!of!the!Mobility!Hubs! beginning!to!take!shape.! ! The!idea!and!vision!of!what!is!possible!remains!deeply!compelling.!It!is!our!perspective!that! the!vision!will!only!be!able!to!come!to!life!through!a!deep!collaboration!with!stakeholders! (municipal,!provincial,!local!entrepreneurs,!and!community).!

Lessons Learned ! Our!investigation!of!the!future!Mobility!Hub!locations!revealed!that!only!a!handful!of!the! locations!are!far!enough!along!in!their!respective!development!and!land!use!visions!to! ensure!the!density!needed!to!make!a!coworking!centre!viable.! ! While!the!residential,!recreational!and!commercial!densities!found!in!Downtown!Hamilton! and!Downtown!Brampton!could!theoretically!support!a!shared!work!community,!others!are! still!years!away!achieving!their!density!targets.!With!Midtown!Oakville!perhaps!appearing! closest!to!being!included!in!this!group,!it!should!be!monitored!closely!over!the!next!two! years,!along!with!the!broadDscale!downtown!developments!in!Mississauga!City!Centre,! Vaughan!and!Markham!Centre.!Within!the!next!two!to!three!years,!there!may!be!more!

66! !

Centre!for!Social!Innovation!

! concrete!signs!that!the!Mobility!Hubs!have!the!density!and!mixed!uses!that!can!adequately! support!shared!work!centres.!

Bottom Line & Recommend Next Steps ! The!Centre!for!Social!Innovation!began!this!project!with!a!vision!to!connect!regional!hubs!by! leveraging!the!power!of!community!in!shared!spaces.!We!envisioned!a!social!venture!with! the!resources!to!capitalize!the!creation!of!beautiful!spaces!within!or!close!to!the!mobility!hub! locations.!We!dreamt!of!shifts!in!commuter!patterns!and!keeping!people!out!of!their!cars!and! in!their!communities.! ! Since!our!inception!in!2004,!the!Centre!for!Social!Innovation!has!been!creating!the! conditions!for!social!transformation,!and!we!watched!as!both!the!demand!and!resulting! impact!have!grown!immensely.!While!we!are!eager!to!continue!contributing!to!this!social! impact!in!the!GTHA!through!this!proposed!Workspace!Hubs!project,!we!unfortunately!feel! that!carrying!this!project!forward!at!this!time,!with!the!original!intentions!we!set!out!with! would!be!a!poor!decision!and!would!not!benefit!the!stakeholders!involved.! ! Simply!put,!we!fear!that!the!projected!capital!costs!are!too!high!and!in!an!environment! where!many!of!the!Mobility!Hubs!still!time!before!they!become!a!reality,!the!risk!not! reasonable.! ! Where!we!feel!we!can!make!an!impact!however,!is!in!taking!this!nearDdecade!of!experience! in!creating!successful!communities!around!shared!workspaces!into!markets!outside!of! Toronto,!where!local!groups!and!organizations!are!hatching!plans!for!locallyDfocused!shared! work!spaces!themselves.! ! The!Workspace!Hubs!platform!could!include!consultation!services!around!access!to!grants,! sponsorship!and!corporate!involvement,!fees!for!training!and!provision!of!educational! programs,!and!so!on.!The!Workspace!Hubs!platform!could!connect!coworking!spaces!across! the!region!for!corporate!multiDcity!membership!packages!and!manage!a!backend!network!of! users!across!the!region.!In!this!sense,!the!Workspace!Hubs!platform!would!not!be!the! centralized!operation!that!we!imagined,!but!rather!a!set!of!support!services!to!an!emerging! sector!of!independent!coworking!businesses!that!are!all!working!toward!a!greater!vision.! ! While!we!have!come!to!the!conclusion!that!the!originally!proposed!concept!is!too!costly,!we! still!feel!that!there!is!tremendous!logic!to!linking!new!shared!work!spaces!to!the!Mobility! Hub!network!and!believe!in!the!transformational!impact!that!this!concept!could!have!on! both!a!local!and!regional!economic!development!level.!We!feel!that!based!on!the!details! written!above,!that!CSIâ&#x20AC;&#x2122;s!best!efforts!should!be!focused!on!assisting!independent!regional! agencies!to!create!their!own!locallyDfocused!spaces.! ! We!believe!that!institutional!partners!that!share!this!vision!could!also!play!a!role!in! incentivizing!local!shared!spaces!to!be!woven!into!the!fabric!of!the!Mobility!Hub!Network.! Certainly!the!Centre!for!Social!Innovation!would!be!interested!in!pursuing!strategies!to!bring! a!more!intentional!process!to!this!networks!development.!We!welcome!a!conversation!with! stakeholders!who!share!our!vision.! !

Workspace!Hubs:!Final!Feasibility!Study!Report!

! 67!