The technology sector is not only good news for the commercial real estate market but also for the strength of the residential sector for the young and often well-paid talent it brings.
In Canada, Toronto still leads the growth of its tech labour pool over the last 5 years according to a report from real estate firm CBRE. But Waterloo was the fastest-growing market.
Between 2011 and 2016, Toronto added 51,300 tech jobs, up 31.8%; Waterloo added 8,400 in the same period, up 65.6%. That’s the second-fastest rate in North America behind Charlotte, North Carolina (77.1%).
Canada compares favorably to our neighbours south of the border as the costs including talent and real estate for a 500-person tech company in Canada ranges from C$33 million in London to $43.9 million in Calgary; while the US can only beat Calgary with its cheapest market, Oklahoma City ($43.3 million.)
“Although value continues to influence office location decisions, tech companies are putting more stock on the availability and concentration of quality talent,” explains Paul Morassutti, Executive Managing Director at CBRE Canada. “Ottawa, Waterloo Region and Toronto all offer the highest concentration of tech talent, with tech jobs in Ottawa accounting for over one-in-ten of all jobs in the city. These were also the fastest growing markets in 2016.”
More market update: