While Calgary’s oil and gas sector has exhibited steady signs of recovery over the past few quarters, even more dynamic industries are gradually establishing themselves as important tenants in the city’s office market.
“We’re beginning to see more demand emanating from tech, advertising, media and information,” Allied Property REIT chief executive officer Michael Emory said in an interview with BNN Bloomberg.
The tech segment has particularly encouraging prospects.
“We’re seeing early signs of that and if it continues to evolve, I think it will enable Calgary to diversity its economy in a meaningful way,” Emory added. “The city can’t continue to rely exclusively on energy sector to fuel its growth.”
In the last few years, tech giants have taken root in the country’s largest markets, driving demand for commercial space to a fevered pitch.
The trend might lead to office buildings in less contested cities becoming more feasible options, the Computing Technology Industry Association (CompTIA) predicted in its Cyberprovinces 2019 study.
Last year alone, Canada’s tech workforce grew by 3.8% annually, representing as much as 61,000 new jobs. The number of tech employees nationwide has grown by around 249,000 since 2010.
Moreover, demand for office spaces is “not just limited to technology companies, who are starting to take office space or build new headquarters, but a range of different company types are attracting tech talent,” CompTIA senior vice-president of research and market intelligence Tim Herbert told Postmedia in an interview.