A burgeoning technology industry is paving the way for ever-growing demand for commercial space in Toronto, according to a new analysis by real estate investment services company Marcus & Millichap.
“Talent is heading to Toronto in strong numbers, growing the consumer base and driving local and international retailers to grow their footprint across the metro,” Marcus & Millichap reported.
This is on top of already significant drivers of demand like American restaurant Chick-ﬁl-A and multinational companies such as fast food chain Jollibee and apparel retailer UNIQLO.
“Companies competing on the global stage remain committed to the Greater Toronto Area, leading to numerous announcements over the past year of new hiring initiatives and increased business investment.”
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Over the past few years, Toronto has cemented its coveted status as a prime destination for financial and intellectual capital.
Artificial intelligence research and development are currently among the most active areas of fintech investment in the city, KPMG International said in an August study. Toronto has been acknowledged as a global leader in these disciplines.
A 2.9% year-over-year increase in the market’s employment figures during Q2 2018 has been largely attributed to the growing influence of the technology sector.
And while Toronto’s e-commerce segment has yet to fully take off, demand for retail space has kept commercial vacancy at just below 3% for a year and half. This has set the stage for 2018 net absorption of 3 million square feet, Marcus & Millichap predicted.
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