Technology companies as Tenants are the driver of Toronto’s Office Leasing recovery in the last decade. But even as tech becomes a defining feature of the city’s economy, real estate landlord’s in Toronto may lack the digital literacy to keep up with what the required tech-forward tenants needs. In order to make the most of Toronto’s tech influx, landlords need to critically assess their existing digital infrastructure, immerse themselves in the latest tech trends and update their buildings accordingly. “Asset and property management teams are facing a knowledge gap around the tech infrastructure currently in their buildings, and around the trends that are changing tenant requirements, like 5G and cloud computing. It is the landlord’s responsibility to provide a well-connected building. Technology has become a cornerstone of Toronto’s economy. In the record month of September 2019, $1.4 Billion was invested into the city from the largest, most innovative tech companies in the world, including Microsoft, Uber, and Shopify. Investment money goes toward hiring, innovation and, of course, office space. Technology is increasingly important to tenants across all industries,” he said. “The new class of tenants in Toronto relies on video conferencing, collaboration tools, and virtual and augmented reality capabilities. Being able to address those needs will be increasingly important for landlords. When Office Buildings landlords fully understand the required digital systems, the better they can demonstrate their offerings to potential tenants and make calculated investments in their buildings. Those investments could have a direct impact on buildings’ valuations. Tenants are willing to pay a premium for tech-enabled office space, and with the continued growth of tech throughout Toronto, those premiums are set to increase, Though there is a gap in landlords’ understanding of digital trends, Freitas has faith in the real estate industry’s ability to learn and pivot in the face of change. The Canadian Commercial Real Estate Market for Toronto Office Leasing must keep up with trends to satisfy the demands of the digital world.
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