The province of Ontario has seen tech companies increase in number in most regions. Niagara has seen a growing tech industry in downtown St. Catharines, regions such as Waterloo and Hamilton celebrating huge increases in their tech sectors, and tech companies flock to the downtown Toronto core. The growth of this new industry in Ontario has resulted in an all-time low office vacancy rate. Toronto’s commercial office space market is currently the tightest commercial real estate market in North America, with the lowest office vacancy rate of below 4 per cent.
Commercial real estate development unable to keep pace
The downtown Toronto core has been expanding quickly with new commercial developments in recent years to try and accommodate the growing need for office space. Since 2014 there has been developments of five million square feet of space, and yet in 2017 it is not enough.
As vacancy rates go down in downtown Toronto, these companies spill out into the suburbs of the GTA. Offices located in the GTA but farther from the downtown core have seen declines in vacancy rates, from 14.7 per cent in Q1 to 12.9 per cent in Q2. There has been a focus on increasing transportation infrastructures, which has only helped companies who are looking at offices in the GTA.
Between Q1 and Q2 in 2017, 1.53 million square feet of office space was leased in the Toronto downtown core. This comes with an increase of 25,000 new tech sector jobs in the GTA since 2010, and no indication that this is slowing down anytime soon.
Canada an attractive place for new businesses
There has been an increase in interest in Canada as a place for foreign businesses to start up. This comes with uncertainty surrounding the American markets, and uncertainty about the U.S. foreign worker’s visa and an uncertain political climate.
As uncertainty has grown south of the border, many businesses and startups have eyed Canada as a place of stability. Canada has become a place of both foreign businesses, as well as Canadian businesses choosing to stay within Canada rather than move once they have hit a certain level of growth. As these companies choose to come to (or stay in) Canada, the commercial development market has begun to boom.
Niagara’s growing business sector
Recently the province of Ontario ranked the Niagara Region as one of the most business friendly places in the province. Being located so close to Toronto, and also so close to the border, the region is attractive for any businesses looking to find a place where their company can thrive and grow.
As office vacancy rates go down in larger cities like Toronto, companies are expected to set their sights on regions like Niagara for new commercial office spaces. Niagara has also seen growth and development within the commercial real estate market, and it’s only expected to increase.
