High technology companies now lease about 740,000 square feet of downtown office space in Vancouver, the highest of any industry sector, but they are also among the most demanding tenants, according to office lease agents.
Technology and digital firms, including giants such as Microsoft and Amazon, are now the principle downtown office client. Such firms account for four out of 10 tenants that are holding 50,000 square feet or more, and make up 34.2 per cent of all office space this year, according to Colliers International. As a comparison, law firms, once a dominant player, now account for 10.3 per cent of downtown leases.
More than 100,000 tech professionals work in B.C. – about three-quarters of them in Vancouver – generating more than $23 billion in revenue and $15 billion in GDP.
Even so, tech companies do not need more office space per employee than traditional businesses.
“They need less,” says Robin Buntain, vice-president of office leasing for Avison Young. “Their per-square-foot density per person is less than a law firm because most of the people are in open workstations, so generally their work areas are pretty tight, but then you have amenity space.”
Collaborative areas and innovative arrangements can make a place look bigger, but they can pack in more tech workers than an equivalent space filled with cubicles and prestige corner offices, Buntain explained.
The tech tenants are great for landlords, but they come with challenges, agreed Colin Scarlett, executive vice-president of Colliers in Vancouver. Tech companies want flexible leases because their staff teams tend to increase or contract more than other sectors.
“Their demands and requirements are diametrically opposed to a landlord's requirements,” which require long-range planning, Scarlett said.
If they can’t offer flexibility, Scarlett suggested office landlords should sweeten their leases with “a more robust amenity package,” such as gym facilities, facilities for bikes, more diverse retail and food offerings that appeal to employees.
