Vancouver is the top city in the West, and second in Canada, when it comes to tech talent, according to CBRE Ltd.’s annual survey of tech markets across the continent.
With a tech workforce of 111,100, up 68.6 per cent between 2017 and 2022, the city ranks 8th in North America, when it comes to tech talent – good news for the local office market and other sectors of the economy.
“There’s no way that you have 45,000 tech jobs created without some increase in demand for space,” says Jason Kiselbach, managing director with CBRE in Vancouver. “That also creates positive momentum for the downtown core, retail, and it’s also got some implications for the residential market.”
While layoffs in the tech sector have cast a pall over the office market, with downtown vacancies increasing to 11.5 per cent in the second quarter, up from 7.2 per cent a year earlier, it’s created opportunities for new entrants.
“For a long time I think tech companies were reticent to come here because the big brand names were attracting all the talent so it was really hard to hire,” Kiselbach said. “As they’ve let some people go, we’ve seen some renewed interest from tech companies that want to locate here from other markets, particularly in the U.S.”
While it’s early days, with many companies still adjusting to hybrid work arrangements and many hiring freezes in place following the rise in interest rates last year that created broader economic uncertainties, new requirements are starting to come to the Vancouver market from the AI, chip manufacturing and life sciences sectors.
“We’ve seen some new areas of growth, and some green shoots,” Kiselbach said.
But accommodating those workers in the kind of space they’re looking for could be challenging.
While overall office vacancies in the market are high, the stock of space suitable for tech companies looking to attract talent in the market is a lot less. A good proportion of available listings are older, “commodity” spaces unsuitable for today’s tenants.
“If you’re looking for high-quality space in a AAA building with a view, there’s not a lot of options,” Kiselbach said.
But the green shoots bode well for the future. Vancouver ranked as the fastest-growing tech market in North America in CBRE’s report. Positive exchange rate dynamics have kept local operating costs affordable, while tech wage growth has ensured rents are attractive to incoming workers.
With the region consistently failing to graduate enough tech workers to fill the positions available, the workforce will continue to grow through new arrivals from elsewhere.
The federal government’s offer to welcome U.S. H1-B visa holders laid off underscored this, hitting capacity within hours of launch.
While not all those workers will be coming to Vancouver, the city remains a top destination.
The closest competitors in Western Canada, according to CBRE, are Calgary, which rose eight spots in the rankings to 21st place, and Edmonton, which ranked 39th.
CBRE flags Winnipeg as an up-and-coming centre, ranking 18th among emerging centres with 26% growth in employment over the past five years.
