Technology development is the future of any modern day, knowledge-based economy, such as ours in Canada. The Ottawa market, particularly in the downtown core and the western area of the city around Kanata, is seeing a resurgence of investment and office expansion for tech companies large and small, fueled by a highly educated workforce, along with an increased demand in office space for supporting businesses and infrastructure.
Primecorp's Working Knowledge of Ottawa Office Market
Primecorp Commercial Realty is well versed in the range of business interests in this area of Ottawa, with intimate knowledge of some of the choicest office real estate assets available. A clear example of this working knowledge is the sale of 301 and 303 Moodie Drive, in Bell’s Corners, facilitated this fall by our investment sales team of Senior Primecorp Brokers: Aik Aliferis, Nick Pantieras, and Pierre Benoit.
Sale of Prime Office Asset at 301 and 303 Moodie Dr. in Bell's Corners
Through Primecorp's excellent working relationship with both the Seller and Buyer, Primecorp advised and negotiated a highly successful transaction for all parties involved. The asset consists of one four-storey office building and one five-storey office building, sitting on 4.51 acres, featuring 148,500 leasable square feet and 585 parking stalls.
The current tenant roster includes Royal Bank of Canada, RBC Dominion Securities, Ontario Infrastructure and Lands, Collins Barrow Chartered Accountants, and more. The property is the closest private office development to the new Department of National Defence Headquarters, which purchased the old Nortel complex. These office buildings, on Moodie Drive in Bell’s Corners, are well positioned in between the Kanata Technology Parks and the Central Business District in Ottawa's Downtown Core, with easy access to the 416 and 417 Highways, and well-serviced by public transit.
Solid ROI Projected in Growing Ottawa Office Market
This $18 Million purchase, by True North Commercial REIT, has excellent ROI potential as the property currently has 85 per cent occupancy, with an average remaining lease term of 4.6 years. Moreover, demand is expected to climb through 2023 with the completion of LRT Stage 2, confirmed last summer by the federal government:
Prime Minister Justin Trudeau re-committed federal funding for the second stage of Ottawa’s LRT system [June 16, 2017], making available up to $1.09 billion to complete the massive project... The second stage of the system will extend the Confederation Line LRT to Trim Road in the east and to Moodie in the West. - Ottawa Business Journal
With the acquisition of the Moodie Drive office buildings, True North REIT nicely rounds out and complements other recent additions to their Ottawa portfolio:
"We are happy to complete the closing of another of the five property acquisitions we recently announced," said Daniel Drimmer, the REIT's President and Chief Executive Officer. "This addition complements our existing portfolio in the Ottawa area, is well-located and satisfies our criteria of being occupied by government and credit-rated tenants." - Newswire.ca
Kanata Office Market Leading the Charge as Ottawa Reasserting Position as Canada's Tech Hub of Choice
Many other prolific commercial real estate investors have a growing interest in Ottawa as the entire region is rising on a tide of renewed investment in technology developments that will power Canada’s future through the 21st century, backed by a stable and growing public service.
“Kanata North is Canada’s largest technology park,” (Kanata Networker) hosting some of the most cutting edge technologic developments of our time. Irdento Cloakware is protecting connected cars from cybersecurity threats, autonomous vehicle hardware is under developement by NXP Semiconductor, while other companies are advancing 5G networks and making significant contributions to Canada’s space program.
A study released earlier this year indicates that 71 percent of respondents would set up their new tech business in Ottawa, invoking visions of a return to former heights where Ottawa was not only the nation’s capital, but the also the capital of technology innovation in Canada:
The days of Ottawa being known around the world as the Silicon Valley North might be returning. A new report has ranked Ottawa the top tech hub in Canada - CTV
In 2016, Ottawa didn’t even make the list of companies considered globally, whereas Toronto placed 3rd and Montreal 9th, among the top 10 tech hubs to live and work in, causing a clamour for other rising Canadian tech hot spots to be considered:
In the 2016 global report released by Compass and analysed by Expert Market only 3 Canadian cities were included in the study, Toronto, Montreal and Vancouver. This caused some people to ask, what about other Candian tech hubs? Our 2017 study went deeper into the Canadian tech startup scene across the country and found that people were right to question the exclusion of cities such as Ottawa and Calgary as they came out in first and second place respectively. - ExpertMarket.ca
Ottawa Attracting Well Educated, Highly Skilled Millennials
Ottawa's population has the highest number of residents with a post-secondary degree in Canada; out of an estimated 558,489 Ottawa residents over the age of 15 only 22.4% of residents do not have accreditation above a High school diploma. Highly skilled millennials are continuing to flock to Ottawa due to its affordability, and variety of amenities for young professionals looking to develop their career and raise a family:
The relative affordability of the Ottawa market is luring people to the city from other areas, particularly high-priced Toronto, as millennials and young families search for a better, less expensive lifestyle. Technology companies are expanding or moving into the market as well, eager to capitalize on the influx of talent—and doing their best to attract more people to the city. “Ottawa is a great place to live, work and raise a family,” notes one interviewee. “It sells itself.” – Emerging Trends in Real Estate 2018: PWC
Primecorp Knows the Ottawa Office Market
Primecorp Commercial Realty Inc. continually has real-time working knowledge, not only regarding office investment properties in Ottawa hotspots such as Kanata and the surrounding area, but also in facilitating office leasing for the smallest startups to the largest private sector companies. We’re proudly doing our part to make a difference to support Ottawa’s tech resurgence through leasing and selling the most sought after commercial real estate. If you're looking to invest in or lease prime office real estate in Ottawa, contact us, we'd love to hear from you!