The tech landscape is Toronto is booming so much that the past year has seen more jobs being created in the city compared to Seattle, Washington, D.C, and San Francisco Bay area combined. All this, while overtaking New York in the “talents markets” ranking.
According to results released on Tuesday by CRBE Group Inc., Toronto had the fastest growth in tech-jobs for any market in 2017. There were 28,900 new job opportunities, which represented an improvement of 14% from the figure in 2016. In total, there were at least 241,000 workers, a 52% past rise over the last five years, going by data from the CRBE. Meanwhile, tech was responsible for more than 1/3 of companies seeking office space downtown.
Toronto tech city was ranked fourth in “tech talent”- a wide measure of competitiveness, going past New York and trailing only Seattle, Washington, and the Bay Area. CBRE considered parameters such as talent supply, education and cost, concentration, rent growth for offices and apartments, as well as jobs outlook to rank 50 tech markets spanning North America.
The real estate firm noted that there were around 5 million tech workers in the U.S., while at least 830,000 spread across all sectors in Canada.
Employers saw an increase in the cost of combined labor and occupancy across all the markets, with the cheapest one, Montreal, recording a rise of 13%.
In a statement written by Paul Morassuti, the executive M.D. at CBRE Canada, firms looking to set up operations are seriously contemplating settling in Canada. He added that Toronto offers some of the best values for technology firms when you consider the affordable cost of labor and housing and an impressively educated workforce. The report also mentioned that the U.S. Midwest provides good value too.
For a firm with 500 workers needing 7,000 square meters of office space, you are looking at annual costs ranging from $27.6 M in Montreal to $32.2M in Ottawa, and $30.2M in Toronto, all in U.S. dollars. The same costs in the least expensive U.S market that CRBE studied, Rochester, comes to $36.3M, while the figure is at $57.4M in the Bay Area.
Speaking on phone, Morassutti revealed that the forces pushing technology and innovation are still in the early stages in Canada. When you consider the overall costs, even while assuming that there is upward pressure on housing, salaries, and office rent; the major markets in the country are still quite a bargain compared to the U.S.
In measuring the growth potential of a market, CRBE took into account the labor technology concentration as a % of the total employment. The winner, in this case, was Ottawa at 11.2%, which was thrice the national average in the U.S. at 3.5%. Toronto was third at 8.9%
Ottawa in the led
In a statement from the M.D of CRBE Ottawa, Shawn Hamilton said Ottawa is moving away from its traditional image of a government-town. Hosting more than 1,700 tech firms and at least 70,000 tech-talent workers, Ottawa’s urban technology has, in the past five years, risen to be the second largest user group in the downtown region of the city. This is larger than the combination of legal sectors and accounting.
Cleveland, Ohio and Columbus, San Diego are some of the U.S. markets on the rise going by the study’s rank.