The growing number of tech companies taking roost in large offices situated at major cities nationwide will ensure the commercial market’s resiliency in the event of a recession, according to CBRE’s Paul Morassutti.
“Tech has become so ubiquitous across Canadian industries [that] the true impact the tech sector has on Canada’s economy has been understated,” Morassutti said, as quoted by Real Estate News Exchange.
This is quite apparent in Toronto, which is considered one of the global leaders in high-technology innovation, particularly research in artificial intelligence.
At present, around 10 million square feet of office space is under construction in in the city, but around 58% of that volume has already been pre-leased. Tech firms represented fully one-fifth of these pre-leases, CBRE noted.
Industry movers like Microsoft are now betting on the city’s long-term prospects, if its move into a 132,000-square-foot lease at the new CIBC Square in downtown Toronto is any indication.
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“Tech companies anchoring new buildings is something we have virtually never seen before,” Morassutti stated.
“Over the past 10 years, tech has grown at more than 2.5 times the pace of the energy sector and three times the overall economy,” he added. “In real estate, identifying areas of growth is fundamental. Increasingly, the areas of growth in Canada are all about technology and our growing knowledge economy.”
“Technology is the catalyst, change agent and king-maker and its impact is rippling through every sector of our market.”
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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