View Photos
View Attendance
View UrbanToronto Article
View BuzzBuzzHome Article
View Mississauga News Article

Rotman/ULI Toronto collaborative events are always some of the most well-attended and engaging on the ULI calendar. This year’s event was no different with an exceptional panel moderated by Nicole MacAdam from the Financial Post and some very thoughtful questions from the audience. The panel tackled many relevant issues pertaining to the needs of Toronto’s startup community, and how landlords and nongovernmental organizations have adapted their approach to service this growing cohort.

Of the many significant topics covered three stood out among the rest:

For Landlords: Own like properties in “Character Neighbourhoods”

Michael Emory, CEO of Allied REIT, shared that the key to Allied’s success has been to consolidate ownership in urban centres with distinct attributes that draw talented professionals. Allied buys and renovates properties of various sizes with unique internal and external characteristics not found in conventional office environments. Emory also noted that the rents at Allied’s properties tend to be 30 to 50% lower than those in more conventional office locales.

Emory noted that the average age of employees in these areas tends to be much lower and there is often a near equal gender split. He listed three components that are generally important to tenants:

1. Natural light: older buildings were built to offer more natural light
2. Air quality: important in any context
3. Open floor plans: offices are outdated and tend to trap light at the perimeter

Emory noted that tenants are looking for authenticity in the buildings they choose. Lana Sherman, Managing Director of Cadan Inc. Real Estate Development, also stressed the importance of having complementary services nearby and clustering like businesses together. Sherman stated that workers are no longer satisfied with a strict 9 to 5 option.

For Startups: Rents in Toronto are not an obstacle to success

Michael Katchen, founder and CEO of WealthSimple, a Toronto-based startup, conveyed a sense that there is an emerging cohort of web developers in Toronto. He listed this among his reasons for choosing to move back to Toronto after having enjoyed success in Silicon Valley on other entrepreneurial ventures. Nina Gazzola, Managing Director of Operations at the MaRS Discovery District relayed that when startups approach MaRS, their primary concern is flexibility. Gazzola revealed that, in the MaRS building, larger more established companies will often locate within the building and pay higher rents for the opportunity to have access to the talent within the building. This allows MaRS to in turn subsidize the rents of smaller startups in earlier stages of development.

Kristina Verner, Director of Intelligent Communities at Waterfront Toronto, conveyed her own experience with the inherent sticker shock that comes from moving from more remote communities to downtown Toronto. She went on to explain that the higher price tag is a reflection of the value inherent in the Toronto ecosystem. Katchen’s view of prices in Toronto was that they are not a deterrent to success. Katchen shared his belief that if leasing rates are a primary concern (for a startup) then more fundamental issues are likely at play. He contends that, if anything, the concentration of talent in Toronto should increase the chances for startup success.

For Toronto: Downtown is expanding and what’s considered “The Core” is being redefined

Emory shared that the area west of University Avenue used to have connotations of the “lunatic fringe.” Now there is seven times more office density in the west end than there is in the east. Emory credited the efforts of Barbara Hall and the municipal administration in 1996 for lifting the outdated zoning designations that were preventing further development of the areas outside of “the core.” Highest and best use started to become an important consideration, giving the private sector more autonomy to provide for the needs of business. Emory credited a number of savvy real estate organizations, (not just Allied) for the successful growth and expansion of the core witnessed in Toronto over the past 15 years.

Moderator – Nicole MacAdam, Senior Editor, Financial Post

Panelists:
Michael Emory – CEO, Allied REIT
Kristina Verner – Director of Intelligent Communities, Waterfront Toronto
Michael Katchen – Founder and CEO, WealthSimple
Lana Sherman – Managing Director, Cadan Inc. Real Estate Development
Nina Gazzola – Managing Director, Operations, MaRS Discovery District