Fight For Fintech Talent Is Reshaping Toronto’s Office Market

Heated competition for tech talent in the financial services sector — which comprises 40% of Toronto's downtown office market — is forcing firms to reassess their approach to workplace design.

CBRE Canada research head Ray Wong
Courtesy of CBRECBRE Canada research head Ray Wong

CBRE Canada’s research head, Ray Wong, told us there’s pressure on financial services companies to cut costs and make their operations more efficient to deliver services to customers at lower rates. “A lot of that’s being done through technology.” Real estate has become an important way for firms to showcase their culture. And to lure and retain a new generation of fintech talent that specializes in areas like software development, digital media and data science, workplaces must be flexible and collaborative — "it’s unlikely they’ll settle for working in a cube farm" — and offer amenities such as fitness facilities and on-site food and retail.

Southcore Financial Centre, an office complex in Toronto owned by bcIMC and managed by GWL Realty Advisors.
Bisnow Archive/Ryan Starr

Financial services firms accounted for 42% of all pre-lease commitments in Toronto’s new office towers in the 2014-2017 development cycle. The firms are being pushed to be more innovative and digital-focused, said Wendy Waters, senior director of research services and strategy for GWL Realty Advisors, whose firm co-authored a report with CBRE on downtown Toronto's rapidly evolving office market. “It’s one reason new developments (such as Southcore Financial Centre, above) are attractive to them,” she said. “The latest technology can be implemented into these buildings at the construction stage.”

Wendy Waters, GWL Realty Advisors' senior director of research services and strategy
Courtesy of GWL Realty AdvisorsWendy Waters, GWL Realty Advisors' senior director of research services and strategy

Toronto is expected to grow by 10,000 financial services jobs by 2020, according to the CBRE/GWLRA report. This will only solidify the sector’s dominance within the office market and bolster demand for space downtown, where vacancy is currently 4.4%, among the lowest in North America. This reaffirms GWLRA's long-term investment confidence in downtown office, Waters told us. Toronto houses 60 of Canada’s 100 known fintech firms, which occupy 260k SF of office space, according to the report. Fintech may not be a major driver of office space at the moment, Wong said, “but there are signs it’s poised for substantial growth."

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Toronto Newsletters
Related Stories

Hedge Fund Breaks NYC Record With $375-Per-SF Office Lease

Renewals Dominate In Years-Low Office Leasing Quarter

University City Office Market Improves Despite Slow Quarter In Philly

High-Flying Midtown Office Market Back To Pre-Pandemic Health

Austin's Office Slump Is Fueling Mixed‑Use Projects

Gould Starts $25M East End Office Renovation, Seeks Tenants For Top Floors

Morningstar To Relocate Global HQ To Renovated Thompson Center

J.P. Morgan Snags £1B Loan For Spitalfields Office Redevelopment

Hudson Pacific Sells San Francisco Office Buildings

NYU's Real Estate Institute To Vacate Longtime Midtown Home

Downtown Office Building Proposed For 155-Unit Residential Conversion

Morgan Stanley To Invest $684M In New Regional Hub In Dallas