Canadian commercial real estate is going to benefit from the technology sector’s steady growth that will fuel more demand for next-generation office space. Real estate professionals are calling for a significant boost in the country’s commercial property sector, specifically in markets like Vancouver, Toronto, Kitchener-Cambridge-Waterloo, and Montreal.
The growth of the tech field
Now more than ever before in Canada, we’re seeing a greater share of people working in the technology field according to 2016 Canada Technology Outlook reports. 2.8% of all employment in the country, or 503,000 people, were working in the field as of second quarter 2016.
Tech companies signed 15.8% of leases for offices of 20,000 square feet or more in the first half of 2016, with numbers yet to be released for the second half. Toronto is currently the national leader in tech employment overall, with 155,733 jobs in the field but faces the challenge of historically low vacancy rates for office space.
Looking ahead
The demand for commercial real estate doesn’t seem like it’ll slow down anytime soon, especially with the Donald Trump’s recent win. Reports taking a closer look at the Toronto real estate market are seeing a very strong next 24 months, specifically Toronto office demand.
Post-Brexit we witnessed a discernable flow of funds into Canada, and with the latest election results it won’t be surprising to see the same flow come our way from our neighbours down south.
Niagara’s technological growth
Technological growth goes further than just technology sectors and is vital for any economy in today’s digital world. Whether it’s in the office or industrial spaces, technological advancements will play an important role in the commercial real estate sector and overall economy of Niagara.
The GE plant is an example of technology playing a role in the economy while also adding another piece of industrial real estate to Niagara’s list. Hopefully, this plant will be an example to other companies of the potential for these types of projects here in Niagara.
Post-secondary institutions boost technological enhancements
Niagara College’s Research & Innovation division offers vouchers to 20 small- and medium-sized businesses (SMEs) to support projects that will generate new market opportunities. These technology adoption projects help support the great companies working in the Niagara region when it comes to technological innovations and economic development.
Technology isn’t going to stop influencing our lives, in fact as we continue to innovate it’ll only shift the way we do things. With a current correlation between the technology sector’s growth and demand for commercial real estate, 2017 could be another great year for our industry. Businesses both new and old will look to upgrade their space to cope with technological advancements constantly impacting the work world, with the goal of maximizing their ROI with the help of technology.
