Employers Chase Top Talent In Toronto


– Hey everyone, welcome to
this week’s weekly chat. Today we’ll do a deep
dive into the employers and the high paying jobs that are coming to Downtown Toronto. See you soon. Hey, everyone, welcome to
this week’s weekly chat. Alex Wilson team alexjwilson.com and the director of
operations, Kyle Dovigi. And this is a continuation part two, talking about all the office space that’s being developed Downtown. Now we’re getting into the meat of it, let’s actually talk about the companies that are going into the properties. And why this is important
is these are the companies that have the high paying jobs, that are gonna be
employing the individuals that are gonna be renting or purchasing your investment properties. So Kyle, take it away. Why don’t we talk about
some of these employers? – Yeah thanks, Alex. – And I had a lot of fun researching this. And it was pretty amazing the quality and caliber of employers that are moving into all of these new office spaces. – Let’s highlight on the word quality. And that’s what you’re
gonna see right there. – Yeah, absolutely. So starting with 25,
Ontario Street, The Shift, the building is called, Think
Research is moving into that. They’re leading digital
health care platform provider, and they’re gonna be the anchor tenant. They’re moving their entire headquarters, and they’re going to occupy
almost 90,000 square feet with their over 500 staff. And the CEO has even said
the exponential growth that they’ve experienced has been made possible by
being based in Toronto. – And you said the word headquarters. And that’s what every city wants. They want the head
office, the headquarters, and these are the type of
companies that are coming in. – Yeah, and that’s a great point. It’s not like just the
employers moving in, they’re moving their headquarters majority of the time to downtown Toronto. So Spadina and Front, The Well, Shopify, a huge e-commerce
company is moving in. They’re gonna have a 15 year lease for 434,000 square feet. This means hundreds of well paying jobs, developers, analysts,
designers, product managers. And they said the best part
is that their global impact can originate from North America’s fastest growing tech center and most multicultural
city in the world, Toronto. – Yep. – Index Exchange, a global
advertising marketplace firm is also gonna be moving into this tower. And they’re gonna be taking
about 200,000 square feet. And they said that, “Although
we’ve gone grown globally “at a rapid pace over the last few years, “our commitment to Toronto
has never wavered.” So they’ve seen the global marketplace, but they still wanna be in Toronto. The next building is
the Bay Adelaide Center and the north tower of that complex. It’s going to be Scotiabank, obviously a huge bank,
financial services company. They’re taking over 400,000 square feet, which is over 50% of the
building for 15 years. So a major employer in Toronto already but they’re kind of doubling down on the Downtown environment. – And also wear “Suits” is filmed. – Yes. At 80 Atlantic Avenue, a
cool new wood beam structure that’s gonna be built there. Universal Music is moving in, they’re taking 40,000 square feet of this 100% leased building already. And they’re moving in
their staff of 150 people. And this is gonna be a cool development because they’re gonna
take the ground floor and it’s gonna include
recording facilities and a hub for artists as well. – Yeah, so that’s an area,
our growing music scene. And we’ve actually, if
you look at the musicians, we’ve been pumping out, the let’s say over the last 10 years and maybe you’ll make fun of the names I’m gonna throw out there, but they’re big players. Drake, Justin Bieber, The Weekend. And Shawn Mendez is Canadian. – And it’s funny that you’ve
mentioned like those three aside from Justin Bieber,
Drake, The Weekend and Shawn Mendez have all
worked with Universal Music. – And then when you, and that. And then when you have the studio, you’re fostering that young talent and bringing that up. – Exactly, and that’s
even what they’ve said they wanna transition from a music company to a music-focused media company, as well. So that transformation, innovation they really want as part
of this new building. The next building is CIBC
Square at 81 Bay Street. Obviously CIBC, one of
Canada’s largest banks is gonna be the primary tenant. And they’re gonna be taking
1.75 million square feet, or 60% of the leaseable space
in that entire building. And this is interesting, ’cause they’re consolidating
approximately 15,000 staff from several of their other
CIBC tenement buildings in the GTA in Toronto. – And we’ll bring that up there. When we Universal Music,
we mentioned that, that was at Vick Park, North York before. We have consolidation at
CIBC office space Downtown. It’s, those ones maybe not
be a net increase in jobs. But it’s now a concentration of the jobs into the core of the city. Again, which focuses
in on development wise at the Downtown core. – Yeah, absolutely. Boston Consulting Group, a large
management consulting firm, they’re gonna be taking 85,000 square feet for its Canadian headquarters. And they’re gonna have
over 300 employees there. And they’ve said that they’re
confident that this new space is gonna encourage innovation, and ways of teaming
together and collaboration for their most valuable
assets, their employees. – And managing consultants, big dollars. – Absolutely–
– Big time dollars, those are big time salaries
for those employees. And those are employees
that wanna live very close to work as they have very
difficult travel schedules and very, they work
all the time basically. If you know, anyone who’s
a management consultant so. – Yeah, pretty crazy hours. – Yeah. – Another significant
investment management company moving into this building
is AGF Management Limited, they’re gonna be taking
almost 100,000 square feet. And they said that knowing that this move represents significant
change, they saw the location would meet the needs of our business and our employees both today
and well into the future. And that seems to be a common
trend about them as well. These company is thinking about the future and where the population center is and their customers are gonna be. And then there’s Microsoft, everyone has heard about Microsoft, one of the largest software
companies in the entire world. They’re relocating their headquarters from Mississauga to be Downtown Toronto. And they’re investing 570 million dollars into this new space. – Yeah that is one there where you have a
relocation plus a net gain because they’re actually
adding more tech employees cause central downtown Toronto is a tech hub now in the world. – Microsoft’s gonna be adding
about 500 full time employees as well as about 500 intern co-opship, internships by about 2022. And in the long term, they
see that this new office is gonna create around 60,000 jobs, including indirect jobs
as a result of that. The next building was 160 Front Street and TD Bank is moving into this one. They’re taking about 840,000
square feet over 33 floors. So a good chunk of that building. And they’re really focused
on creating a free range, open concept campus
experience to really reimagine the working experience
for their colleagues. And this was a key part of
their GTA real estate strategy to really transform the way
that their employees worked. So again, that transformation theme. And the Ontario Teachers Pension Plan is also gonna be moving
into this building. And again, relocating their
head office from North York to where else? – Downtown Toronto.
– Downtown Toronto. And they said that Toronto is a vibrant and international city
and the Downtown core is a major hub of finance. And they are a major… – Big time.
– Finance, big time money. – It may sound, their
name may sound boring, Ontario Teachers Pension Plan. And Kyle and I we have a business background from Laurier. But the OTP co-op job was like one of the most coveted co-op jobs. And if you look around the world and do some research on
Ontario Teachers Pension Plan, they’re one of the largest investors of infrastructure around the world. They buy airports, highways, pipelines, everything like that. They are a massive source of funding-wise. – Yeah, my first co-op job was actually… – You got to do it.
– Yeah, I got to do that. And it was amazing how
many different investments they had globally, not just but in Canada. And they said that they really felt that this was the right
time to move closer to their partners and the pool of talent that they’re gonna need for the future. The next building was
16 York Street and HSBC, another large financial services company is gonna occupy about 115,000
square feet over six floors. And this is really about
bringing their GTA employees together in one single space. – And I’ve a story about 16 York. I have a client, their
national bank is moving, taking office space in 16 York as well. And now he’s specifically
looking to buy a condo walking distance to his office. As a what I call a crash
pad in Downtown Toronto. So he’s located in a suburban area outside of the citywise, but because of traffic is so bad. And if he wanted to stay a little late, whether it’s a Raptors game
or something like that, right now, it’s just not feasible for him the night is too late. But if you able to get a crash pad, he’s able to have that property. if you staying late in the
city he will just stay there and be able to easily go
to work in the morning. So that’s what we’re also
seeing with these properties. The more executive level individuals, they’re also buying properties and may not be living in them. They just want a piece
that’s close to their office so they can sleep at night and still have their larger
home in a suburban area. And then what I eventually see
is they’ll end up relocating to the Downtown core when they’re ready to give up their home. – And the next building
is 100 Queens Quay, at Sugar Wharf and LCBO is gonna be taking 200,000 square feet and
this is just replacing the head office that already
existed on that site. But the Toronto Regional Board of Trade and it’s services arm the
World Trade Center, Toronto, is gonna be taking
about 90,000 square feet out there as well. At 130 Queens Quay East,
the Daniels Waterfront. Daniels, the developer of that building is actually relocating their
headquarters to this building. Core Architects, another big company is taking about 20,000 square
feet for their 85 person team. And they said that the
playfulness of the Waterfront combined with the creative
inspirational space within the development,
will really give them the workplace balance imperative
to their firm’s success. Also, in this development
is gonna be House of Cool, a leading animation studio. And I really like this part
of George Brown College and OCAD, are also getting space in there. About 240,000 square feet for post secondary educational space. Which was really cool as well. So not just employers, moving
down to the Downtown core. At the Waterfront Innovation Center at 125 and 155 Queens Quay East you have WPP, which is a
multinational advertising and public relations company. They’re moving 19 offices that they have scattered across Toronto under one single roof. And this is about 2,000 employees, and they’re taking over
260,000 square feet. And they said that the
Toronto core location allows proximity for all the groups people in a building that will
be a state of the art in terms of technological infrastructure. So very cool stuff. Then Sidewalk Labs has
been in the news lately, gonna be a massive development. And if that gets built,
it’s going to be the site for the new Google Canada headquarters. And they’re looking at
creating 44,000 direct jobs as part of that development, and 93,000 total jobs
including all the spin off and indirect ones. And they wanna transform this area into a global hub for urban innovation. So very cool, very exciting. So then I went back a little bit and I saw one other employers
have moved into the space. And they’re gonna be some
names that you recognize. There was Apple, they moved
downtown several years ago to 120 Grand Boulevard. SAP opened a new Canadian
headquarters in 2018, on Bay Street. Tim Hortons moved their headquarters from Oakville Downtown to King Street. Postmedia network moved from Don Mills to 365 Bloor Street
East a couple years ago. Coca Cola moved from East
York to Downtown Toronto. Deloitte consolidated
seven offices they had across the GTA to here in Adelaide. Then there’s been Visa,
PwC, Tensing, Colliers, Cushman and Wakefield. They’ve all opened new
Downtown Toronto offices in the last couple of years. So very big companies. And then I came across an
article and I got really excited. It said that the UN headquarters
made an announcement that there was gonna be
a $6.2 billion relocation to a Waterfront seg on the apartments. So I was excited, I’m
like, this is so cool. And I realized the date of the article. – Oh, yeah, I was gonna say, that was the April Fool’s day. – Yeah on April first, it was a joke. That’s not happening,
unfortunately, but I got excited. (laughs) But there was an announcement
that it just did come out about the Hudson Yards development. Alex you know anything about the site? – Well, the Hudson Yards
developments in New York, but the builders of that they’re the ones that are looking to do
a similar type of build in Toronto, do you want to talk about it or do you want me to talk about it? – I can fully talk about it.
– Yeah you go, you jump on it. – Hudson Properties they just announced that they’re gonna be building a $3.5 billion mixed use complex. This is just gonna be
north of the Toronto, Roger Center and the CN Tower. It’s gonna be 4.3 million
square feet over four acres. So a huge site Downtown. And they’re gonna have
to office towers as well, large towers, 58 and 48 stories. And this project is really a big bet on the increasing demand for offices for the city’s booming technology and financial services industry. And really the shift from, the shift to Downtown from the suburbs, is really reinforcing that. – And the the Oxford properties, the the Hudson Yards development is happening in New York City, it’s one of the, or the
largest developments in North America. And what they did is it
was the Hudson Yards, which were rail yards
and they literally build a whole neighborhood above the yard. So using the the rail deck construction. So they’re gonna, they’re looking at doing the
same thing here in Toronto. So what this would be, when
you look at developing, you have the office towers, 800 residential units, residential
rentals going in there. And then the, there will be
public Rail Deck Park space. So a couple years ago John Tory said that he wanted to do Rail Deck Park. Well, we’re actually starting
to get Rail Deck Park and this Oxford properties are specialized in the Rail Deck Park developments. See, they did it all on Hudson Yards. And they did over top things. It’s really exciting to see that, seeing some forward momentum on that. – Yeah, very exciting. So over and over, we’re seeing a trend that’s happening time and time again. You have this diverse group of companies, in construction, real estate, finance, professional and technology services, IT and even a little bit of manufacturing, which is disproportionately concentrating in the Downtown Toronto core. And the reasons for this, I
think, are really number one, they’re consolidating their operations. they have a ton of different buildings And they’re finding that their employees need to work together. They also wanna be better able to serve their customers and clients. and they wanna be close to them, and that means being downtown. A huge trend that kept coming
up was really collaboration. And especially around technology
and technology partners, where these companies
wanted more accessibility to universities, and
innovative new tech startups and different incubators that are throughout the city as well. And creativity and growth
are really gonna be the driving factors for
many of these companies. – And really being in, everyone being in close
proximity to each other allows for that collaboration. And then it also extends to the living, individual’s living aspect as well. So if I lived in a area that was far away from this collaborative area, I’m gonna be missing out
on a lot of opportunities. So it’s in my best interest
to live close to this hub in this collaboration area because it’s going it’s going
to help further my career ’cause I can participate
in more extra events. I have later meetings, be well rested, and all that kind of stuff. So that’s where, okay, these
high paying jobs are down here. Now I wanna live close
to the high paying jobs, ’cause it’s gonna be mutual beneficial for the company and myself
to live close to these jobs. And then everyone advances together. So that question why we did all this, where we get the objections
from people who are like, well, who’s gonna pay these rents? These are the people paying the rent. And the reason they’re paying these rents, is they wanna be close to work, and they wanna be part of
the collaboration process. And it just allows
maximization and efficiency of their time to be close to work, and it also works out for for the company. – Absolutely and Alex
there drew really well into the number one reason
all these employers gave to moving downtown. And that was what they wanna
attract highly qualified, highly educated top talent. Over and over again,
that’s what they said. – And and we, well we
look at it we’re both from Northern Ontario,
we both went to Laurier and we both ended up in Toronto. There was really no question
about where in Canada, we’re gonna end up, we were always going to
end up in Toronto wise. And we have other friends
that have even left Canada, for opportunities and in the States wise. But when you’re in Canada,
really your opportunity, your top level opportunity is going to be in the Toronto area. And if you’re in the Toronto area now, where you’re gonna wanna live, to be close to these opportunities is in the Downtown core. And when you make the investment in the residential aspect,
which is close to work, you’re making a bet on yourself. And the companies are making a bet on them and you make a bet on the companies. And you’re gonna win in the long run. And then what we’re gonna do is we’re gonna make a bet on the companies and on you and we’re
gonna buy the properties and we’re gonna collect the rent that you’re paying and
it’s going to pay off in our investment wise. We got population, we have jobs, so we’re gonna own the roofs
over those people’s heads. That a good way to end and go? – I think so. – Okay, great, well, if you guys are interested in investing, reach out to us, contact alexjwilson.com or you can see me with Kyle
at REMAXWealthbuilders.com. And we can set up a consultation so that you can buy one of those roofs over those high paying employees, their jobs and they can pay rent to you. And then you can make passive income while they’re there working
on their active income.

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