Waterloo Region ranks in top 20 in North American tech markets, report
Posted Jul 19, 2023 07:51:29 AM.
Last Updated Jul 19, 2023 02:01:53 PM.
Waterloo Region has cracked into the top 20 as a leading tech market in North America.
According to CBRE’s annual Scoring Tech Talent ranking, the region rose six spots to 18th overall. It is one of five Canadian cities to rank in the top 20 following Toronto (5), Vancouver (8), Ottawa (11) and Montreal (12). Other Canadian cities included Calgary (21), Quebec City (35) and Edmonton (39). San Francisco’s Bay Area remained at the top spot.
The report said Waterloo Region’s tech sector has grown by 52 per cent since 2020. Canada’s tech workforce outpaced the U.S. by growing 15.7 per cent between 2020 and 2022, compared to the U.S. growth rate of 11.4 per cent. All of the tech markets with the highest market growth in North America were Canadian cities. Since 2020, Canada and the U.S. have added a combined 760,000 tech talent jobs.
The report said Canadian tech markets are growing quickly because of a “relatively more affordable cost” compared to the U.S. Annual operating costs for a tech company, including labour and real estate, in Waterloo Region is $35.5 million. Quebec City had the lowest annual cost with $33 million.
“The scorecard shows how competitive and tightly clustered the top tech markets are right now,” said CBRE Canada Chairman Paul Morassutti. “After a period of hypergrowth, the global tech sector is facing headwinds, and like many other sectors of the economy, tech has had to adjust to changing economic circumstances with office right-sizing and layoffs.”
One of the competitive edges Waterloo Region has over other markets is its abundance of younger tech workers. It is one of three cities in North America with the highest concentration of residents in their twenties. Since 2016, the number of 20-somethings grew by 17.7 per cent (14,514) and 30-somethings grew by 17.2 per cent (13,006).
CBRE is the world’s largest commercial and real estate service and investment firm. The annual Scoring Tech Talent report measures 75 markets across North America.
