First place you think of when you hear the word Tech? Could be Canada now!
Global Outlook
Month after month, we discuss the effects of automation and advancing technologies on the changing landscape of the commercial real estate industry. Whether it's the billions of dollars being invested globally into distribution chain robotics and drones for logistics networks, or the rise of beacon technology emanating from our smart phones to create enhanced and tailored retail experiences, technology is changing the way we do business, and in fact, how we experience life as a whole.
It is little wonder then, the speed at which the tech industry is growing and evolving around the world, across all industries. In 2018, the global tech market is expecting 4% growth (up from 3.4% in 2017), and is set to exceed $3 trillion in tech purchases for the first time (Forbes).
Across Canada, we are experiencing the new dimensions of this industry, witnessing massive growth in higher education programs, and ultimately the creation of more tech jobs. In the past, Canadian tech talent would seek the best opportunities south of the border, however in the past five years, Canadian cities have begun surpassing USA's top tech cities in attracting and retaining this talent from within, as well as outside of our borders.
Canadian Outlook
News released last month touted impressive statistics that Toronto alone created 28,900 new tech related jobs in 2017, which was more than were created in the San Francisco Bay Area, Seattle, Washington D.C. and New York City combined (Bloomberg). The reasoning behind this northbound flow of traffic largely has to do with the lower costs of labour, real estate and living, in addition to an increasingly educated work-force in Canada. Many of the most well-known tech companies were founded in Canadian cities, such as Shopify, HootSuite, Diply and SkipTheDishes.
Edmonton Outlook
Edmonton will definitely not be left behind in this technology rush, with huge advancements in our startup culture, as well as City support models. Programs created for technology companies through organizations such as TEC Edmonton, Startup Edmonton, Edmonton Economic Development, and Alberta Innovates (to name a few) assist businesses by providing mentorship, professional development, networking, funding assistance, and collaborative work environments. The Edmonton Research Park (ERP) offers tailored work space and programs, currently being home to about 60 health technology, petroleum research, software, nanotechnology and clean energy businesses. The ERP also offers a unique opportunity to biotech companies interested in building their own facility, whereby they can lease vacant land from ERP for $1.00 per year for ten years, before being required to purchase the property. Educationally, the University of Alberta, NAIT, Grant McEwan and others have lead the way in beefing up their tech program offerings as well as the digital technologies integrated into campus. In fact, NAIT is now a leader in the higher education space, earning the college a finalist position in the Large Public Sector Transformation category in the ITWC's 2018 Digital Transformation Awards.
NAIT Centre for Applied Technology (CAT) (Photo Source: hcr-moves.com)
In the Edmonton Core, major office leasing transactions to tech tenant groups are popping up with increasing frequency, absorbing much of the long vacant space while also creating tech clusters and hubs. A few notable transactions include:
BioWare expansion into approximately 75,000 SF in EPCOR Tower.
Google DeepMind lease of approximately 20,000 SF in First & Jasper.
SNS Technologists lease of approximately 12,000 SF in Centre Point Place.
Granify expansion into over 10,000 SF in Enbridge Place.
These transactions, in conjunction with many others, would have many concluding that Edmonton is no longer just a government or oil & gas town. Add in the more than noticeable face lift our City is receiving, and it is clear that Edmonton has adopted a culture of technological innovation.
Canadian cities are becoming luring alternatives to large and small tech companies alike. And at the end of the day, when a typical 500-person tech company needing 75,000 sq. ft. of office space can expect total annual costs ranging from $27 million in Montreal up to $59 million in the San Francisco Bay Area, those clear, blue, Canadian skies tend to look a little more enticing. (CBRE)