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Young Tech Firms: Flexibility Requirements in a Near Zero Vacancy Market

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This spark report is first of the Colliers 2019 Tech Insights, a report series highlighting various aspects of the Greater Toronto Area’s technology industry.

 

There’s evidence of technology tenants rapidly expanding in the GTA, showing a 203% increase in the number of lease transactions year-over-year. This brings the GTA’s tech occupied footprint up to 18.7M SF, representing 9.4% of the region’s total office inventory.  

 

Startups and younger tech firms have limited bargaining power in today’s near zero vacancy market, impacting their ability to negotiate flexible lease terms. As a result, a concentration of young tech firms are influencing the rise in demand for flexible workspace options (coworking) and pushing for shorter lease durations in the GTA Central market. 

 

With lease durations only able to be negotiated so low, it’s more likely the popularity in flexible workspace options will continue to grow. In the upcoming quarters, the migration of young tech tenants from downtown into the midtown and suburban market is a reasonable assumption, with these younger tenants being mirrored by mature, suburban tech tenants moving their offices downtown.


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Young Tech Firms: Flexibility Requirements in a Near Zero Vacancy Market

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For More Information, Please Contact:

Daniel Holmes

President, Brokerage Services Canada

Toronto Downtown

Daniel Holmes is the President, Brokerage Services Canada, overseeing the national brokerage business and operations support for Office, Industrial, Retail, Investment Sales, Debt and Hotels. Dan is a champion for clients, his people and the industry, accelerating success through advocacy, investing in relationships, and support. 
 
As a leader at one of the most trusted global brands in commercial real estate, Dan implements strategies to advance and mentor Colliers’ employees. He tracks the insights, factual data, market trends and projections that drive real value in commercial real estate. Dan empowers advisors and clients to make informed decisions based on Colliers’ integrated services. He excels at building teams and culture, balancing healthy competition, action orientation, personal accountability, enterprising spirit, and camaraderie. 

Dan began his career in real estate at Colliers as a Research Assistant, quickly transitioning to sales where he built his industry experiences and network over 11 years before moving on to a leadership role externally. After returning to Colliers, he held progressive leadership roles including Senior Managing Director, Office Practice Group, and Executive Managing Director, Greater Toronto Area where he led leaders and sales advisor teams, oversaw operations, recruitment, the Eastern Acceleration Advisor Development Program, and strategic business development. 

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