CBRE RESEARCHCBRE Research has ranked 10 of Canada’s largest cities by the number of tech-talent workers located there (Figure 2). This overall scorecard uses 13 metrics that together

//2016 SCORING CANADIANTECH TALENTInfluencing Innovation, Economic and Real Estate Growth in 10 Canadian Markets

CBRE RESEARCH

//

74.4%Waterloo, ON

58.5%Winnipeg, MB

50.1%Vancouver, BC

50.0%Halifax, NS

35.6%Toronto, ON

324.2KCOMPUTER SYSTEMS/SUPPORT

187.1KSOFTWARE

DEVELOPERS

148.7KTECH

ENGINEERS55.6K

TECH MGMT.

Calgary, ABOttawa, ONToronto, ON Vancouver, BC Montreal, QC

66.13 58.80 58.50 49.8085.77

//Tech employment in Canada has grown by 24% or 137.7K jobs over the past five years2

//715.6K tech-talent workers are concentrated across four key occupations

1 Scored on a scale of 1-100; 2 Tech talent growth, 2010-2015.

//Top ranked tech-talent markets showed strong labour pool and job growth1

takeaways

2016 SCORING TECH TALENT | CBRE Research2

Highest Educational Attainment, Bachelor’s Degree or Higher

43.4%1. Ottawa, ON

38.6%2. Toronto, ON

$39.8M1. Calgary, AB

$38.2M2. Ottawa, ON

$31.6M9. Halifax, NS

$30.7M10. Winnipeg, MB

Highest Cost Markets Lowest Cost Markets

3 Estimated 1 year cost wage and rent obligation for typical tech firm (500 employees, 75,000 sq. ft.).

//Tech-talent potential is concentrated in well-educated markets

//Tech-talent employers examine talent and real estate costs to guide location decisions3

3 © 2016 CBRE Limited


//what is tech talent and why is it important? 6Tech talent is a group of highly-skilled workers in more than 10 technology-oriented occupations driving innovation across all industry sectors.

//where are the top-ranked tech-talent markets? 8A scorecard measuring 13 different metrics to gauge the competitive advantages of markets and their ability to attract and grow tech talent pools determined the top- ranked tech-talent markets.

//how to find tech-talent momentum markets? 13Tech-talent growth rates are the best and most easily quantified indicator of labour pool momentum and patterns across both large and small markets.

//what do tech-talent markets look like? 16Tech-talent markets are characterized by high concentrations of university-educated workers, major universities producing tech graduates and large millennial populations.

//what is a startup city? 21Today’s startups could become next year’s tech giants. The ability to attract, support and incubate small firms could help cities elevate their rankings in future editions of this report.

//how do commercial real estate costs impact tech talent? 22Employee wages and office provide insight into annual operating costs, market by market.

//how does tech talent impact commercial real estate? 26 Markets with high concentrations or clusters of rapidly growing tech-talent employers have driven office leasing demand, causing rising rents and declining vacancies.

//contentsScoring Canadian Tech Talent is the latest edition of a CBRE Research thought series. By analyzing

labour market conditions for highly-skilled tech workers, 10 Canadian cities were ranked according

to their competitive advantages and appeal to tech-talent workers and tech employers. This edition

is unique as it focuses largely on established tech occupations with over 1,500* employees, as tracked

by Statistics Canada. The analysis also provides insight into tech-talent demographics and how their

growth patterns are impacting cities and real estate markets across Canada.

*As per Labour Force Survey by Statistics Canada, NOC codes that fall below the confidentially threshold have been suppressed. Confidentiality threshold as follows: 1,500 employees for ON, AB, BC; 500 employees for NS, MB.

5 © 2016 CBRE Limited 5

//Technological evolution continually influences the way we live and how we work. Increased access to information has altered the way we experience the world, and the interconnectivity between our cell phones, computers, homes and offices provide an ever seamless transition between work and play. The internet is the backbone of commerce. It is the infrastructure used by companies to compete globally for consumers, and to provide traditional goods and services that meet increasing consumer demands for experiences and product interaction.

More than 715,000 tech innovators at established companies across Canada are working on technological advances. Statistics Canada’s definition of tech talent consists of four job classes ranging from software developers and programmers, to computer support and database systems workers. These jobs are highly concentrated within the high-tech industry but span a broad range of companies in various sectors of the economy (Figure 1). These innovators or tech-talent workers are highly skilled, sought-after employees and commercial real estate tenants.

By these definitions, tech talent comprises 4.7% of the total Canadian workforce. So what impact does such a small portion of the economy have on commercial real estate? From 2013-2015, the number of tech-talent employees at established companies has grown 9.0% adding more than 88,000 jobs to the Canadian economy. Tech companies have also been one of the largest drivers of office leasing activity in Canada. In 2015, tech companies accounted for 16.1% or 2.0 million sq. ft. of significant office leases in Canada. Landlords are competing for tech companies, who have been the most active in filling existing character buildings and are increasingly defixturing new office towers to fashion creative spaces in amenity filled neighbourhoods.

Tech talent is a quickly expanding segment of the market and is spurring innovation within non-tech sectors. It is also shaking up the tenant mix and technical requirements for office buildings across Canada.

what is tech talent and why is it important?

6 2016 SCORING TECH TALENT | CBRE Research

FIGURE 1

CANADIAN TECH TALENT LABOUR FORCE BREAKDOWN (2015)

INFORMATIONSYSTEMS TESTING

TECHNICIANS

DATABASEANALYSTS AND DATA

ADMINISTRATORS

MECHANICALENGINEERING

TECHNOLOGISTSAND TECHNICIANS

INCLUDING TECHNOLOGISTS AND

TECHNICIANS

Source: CBRE Research, Statistics Canada LFS (NOCs), May 2016.


The rise in technology enabled mobility and the need to pursue talent wherever it is located has encouraged technology companies to spread to markets across Canada. Former technology strongholds, Ottawa and Waterloo, continue to house global tech leaders and have extensive experience with the boom-bust cycle of the industry. Increasingly, tech pedigree has become equally important to potential tech tenants as cost-effective locations in smaller markets. These factors combined have led to increased office demand by tech companies across Canada.

CBRE Research has ranked 10 of Canada’s largest cities by the number of tech-talent workers located there (Figure 2). This overall scorecard uses 13 metrics that together equate to four tech industry indicators of success: Employment, Education, Tech Industry

Outlook and Real Estate Market Outlook. The metrics in each category have been weighted by relative importance to companies seeking tech talent. For example, tech labour costs are weighted heavier than office tenant rent because companies allocate more capital to labour compared to real estate. Tech talent concentration metrics, or the percentage of total employment that tech represents, have the highest weight because they identify clusters of talent, signifying market strength.

Overall, Toronto and Vancouver earned the number one and two rankings in the first edition of Scoring Canadian Tech Talent. Montreal and Ottawa placed third and fourth, respectively, while Calgary surprised to round out the top five markets.

//where are the top-ranked tech-talent markets?



#1 Toronto, ON

85.77

34.06

#6 Edmonton, AB

#2 Vancouver, BC

66.13

33.09

#7 Halifax, NS

#3 Montreal, QC

58.80

32.52

#8 Waterloo, ON

FIGURE 2

TECH TALENT SCORECARD RANKINGSClick on a Market to See the Full Scorecard


#4 Ottawa, ON

58.50

16.88

#9 Winnipeg, MB

#5 Calgary, AB

49.80

12.99

#10 London, ON

Source: CBRE Research; CBRE Econometric Advisors; Statistics Canada; CMHC



//Employment

Demand for tech talent across all industries is growing and it has been easy for large cities like Toronto and Vancouver to fulfill this need due to their tech talent concentration stemming from their economy’s size and strength. Large markets tend to have a deeper pool of talent, while comparatively smaller markets attract talent with more competitive business and living costs.

Waterloo, one of the smaller markets studied in terms of overall population, had the fastest growing pool of tech talent, with those employed in technology occupations growing 74% from 2010-2015. Winnipeg was second at 58% growth while Halifax and Vancouver were tied at 50%.

However, analyzing tech labour growth over several consecutive two-year periods shows that momentum has shifted. While increasing in five other markets, tech employment growth as captured between 2013-2015 slowed in Waterloo from what was seen between 2011-2013. Looking strictly at growth between 2013-2015, London led the pack with a significant 94% growth off a relatively small base, and Halifax and Toronto both had double digit growth. Employment growth in tech occupations has a multiplier effect that positively impacts economic growth, which has an immense impact on commercial real estate within that market.

how to find tech-talent momentum markets?


FIGURE 3

TECH TALENT LABOUR POOLS (2015)by Market

1 2010-2015; 2 2010-2015; 3 2015.Source: Statistics Canada May 2016.

CityTech Talent

TotalGrowth

Rate1 Growth by

Volume2Concentration of

Total Jobs3

Toronto, ON 179,200 35.6% 47,000 6.9%Montreal, QC 112,900 26.0% 23,300 6.5%Ottawa, ON 65,400 9.2% 5,500 10.6%Vancouver, BC 57,500 50.1% 19,200 5.4%Calgary, AB 37,400 19.1% 6,000 5.5%Edmonton, AB 21,700 13.6% 2,600 3.3%Halifax, NS 12,000 50.0% 4,000 6.4%Waterloo Region, ON 10,409 74.4% 4,440 2.9%Winnipeg, MB 10,300 58.5% 3,800 2.9%London, ON 3,100 -38.0% (1,900) 1.4%Canada 715,600 23.8% 137,700 4.6%

Source: Statistics Canada, May 2016.

FIGURE 4

CHANGE IN MOMENTUM OF TECH TALENT LABOUR POOLS (2011-2013 VS. 2013-2015)

CityGrowth

(2011-2013)Growth

(2013-2015)

London, ON 6.7% 93.8%Halifax, NS 2.6% 53.8%Toronto, ON 3.7% 18.0%Vancouver, BC 30.2% 9.3%Edmonton, AB 8.7% 9.0%Montreal, QC 7.7% 7.1%Ottawa, ON 3.7% 7.0%Calgary, AB 21.6% 5.4%Winnipeg, ON 55.6% 5.1%Waterloo Region, ON 13.8% 1.8%Canada 9.0% 9.8%


TECH EMPLOYMENTRANKINGS

1. Toronto, ON2. Montreal, QC3. Vancouver, BC4. Ottawa, ON5. Calgary, AB6. Edmonton, AB7. Waterloo, ON8. Halifax, NS9. Winnipeg, MB10.London, ON

In addition to size and growth, the tech concentration – or percentage of total tech employment – is an influential factor in ranking markets for tech talent. Toronto’s tech employment base contains 25% of Canada’s tech talent – the highest in Canada and far outstrips Montreal at number two with a 16% concentration. Ottawa rounds out the top three most concentrated tech markets with a tech talent pool representing 9% of the overall tech labour force. Each has a sizeable concentration of highly-skilled workers which offers an environment conducive to innovation.


EDUCATIONRANKINGS

1. Ottawa, ON2. Toronto, ON3. Vancouver, BC4. Halifax, NS5. Edmonton, AB6. London, ON7. Montreal, QC8. Waterloo, ON9. Calgary, AB10.Winnipeg, MB

//Education

A common aspect of the top tech-talent markets is high educational attainment (minimum university undergraduate degree). All 10 of the largest markets have an educational attainment rate above the Canadian average of 28%. In Ottawa, more than 40% of the working age population have high educational attainment (Figure 5), with Toronto, Halifax, Vancouver, Calgary and Montreal all reporting above 30%.

Despite a large population with higher education credentials, demand for these skilled employees is very strong. As such, certain cities are seeing university degree completion rates climb quickly. Ottawa leads completion growth rates with 14.5% more degrees expected from 2015-2020. This is one metric that seems to favour smaller markets, with Edmonton and London rounding out the top three.

what do tech talent markets look like?


TECH INDUSTRY OUTLOOKRANKINGS

1. Toronto, ON2. Vancouver, BC3. Montreal, QC4. Calgary, AB5. Ottawa, ON6. Waterloo, ON7. Halifax, NS8. Edmonton, AB9. London, ON10.Winnipeg, MB

Tech Industry Outlook

Another notable characteristic of tech-talent markets is a high concentration of tech-savvy millennials1 in the local workforce. Millennials have exhibited a preference for living in cities rather than suburbs, which has increased downtown populations significantly. Their robust entrance into the labour pool contributes greatly to the growth of tech talent within the 10 markets tracked for this analysis (Figure 8). Nearly half of those markets had their millennial population increase by more than 10% between 2009-2014, with smaller markets like Winnipeg, Ottawa, Halifax, and London registering even higher growth. Despite variations in growth rates, the millennial population that accounts for between 15-18% of the population of all 10 Canadian cities is much more stable than in the U.S., where Boston and Pittsburg had millennials account for 25% of total population.

Similar millennial populations across Canada might make markets appear equal, however top tech markets distinguish themselves with the presence of tech

clusters. Tech clusters typically form around preeminent universities where companies have access to a constant flow of new talent. Toronto has eight publically-funded post-secondary institutions and is a magnet for recent university grads from across the province and country. Tech clusters also form around leading tech companies such as Nokia in Ottawa and OpenText in the Waterloo Region. Tech companies use these clusters to collaborate and compete with one another, thereby accelerating the innovation process in that market.

Approximately 28% of high-tech employees in Canada are located in Toronto and another 16% are in Montreal. Vancouver and Ottawa also have significant concentrations at 10% and 5% of established high-tech employees, while the remaining employees are relatively evenly spread through the other six markets.

1Tech Analysis conducted in this report includes millennials aged 20-29 years living in cities.


City Labour Force Educational Attainment

Ottawa, ON 43.4%Toronto, ON 38.6%Halifax, NS 36.4%Vancouver, BC 36.3%Calgary, AB 35.4%Montreal, QC 31.1%Winnipeg, MB 29.8%Edmonton, AB 29.5%Waterloo Region, ON 29.0%London, ON 28.3%Canada 28.2%

City Degrees Per Capita

Toronto, ON 0.52Ottawa, ON 0.30Vancouver, BC 0.25Halifax, NS 0.25Calgary, AB 0.24Montreal, QC 0.21Edmonton AB 0.20Winnipeg, MB 0.19Waterloo, ON 0.19London ON 0.19

FIGURE 5

TOP 10 MARKETS FOR EDUCATIONAL ATTAINMENT

FIGURE 6

DEGREES PER CAPITA

25-64 Years Old, Undergraduate Degree or Higher (2015)

Undergraduate Degree or Higher (2015)

Source: Environics Analytics 2015

Source: Environics Analytics 2015


−3,511 Winnipeg, MB

−6,202 London, ON

−8,670 Toronto, ON −37,458 Ottawa, ON

+6,132 Waterloo Region, ON

−4,846 Montreal, QC

−7,176 Vancouver, BC

−9,204 Halifax, NS+28,735 Edmonton, AB

+33,612 Calgary, AB

FIGURE 7

WHERE ARE WORKERS COMING FROM AND WHERE ARE THEY HEADED?

FAST GROWING MARKETS OUT-PACE EDUCATIONAL ATTAINMENT

CityUndergraduate Degree or

Higher (2010-2014)*Jobs Added

(2011-2015)Brain

Gain/Drain

Calgary, AB 58,588 92,200 33,612 Edmonton, AB 67,565 96,300 28,735 Waterloo Region, ON 16,768 22,900 6,132 Winnipeg, MB 24,011 20,500 (3,511)Montreal, QC 108,746 103,900 (4,846)London, ON 16,002 9,800 (6,202)Vancouver, BC 104,476 97,300 (7,176)Toronto, ON 237,670 229,000 (8,670)Halifax, NS 15,104 5,900 (9,204)Ottawa, ON 70,158 32,700 (37,458)

Source: Environics Analytics 2015; Statistics Canada May 2016*Refers to working aged population (25-64 years old), currently residing in each city.


FIGURE 9

TOP 10 CONCENTRATED MILLENNIAL MARKETS* (2014)

City % Change

Winnipeg, MB 15.0%Ottawa, ON 14.9%Halifax, NS 11.7%London, ON 10.5%Edmonton, AB 3.3%Toronto, ON 3.1%Vancouver, BC 2.9%Montreal, QC 2.8%Calgary, AB 2.7%Waterloo Region, ON 1.7%

City % Change

Vancouver, BC 18.1%Edmonton, AB 17.7%Waterloo Region, ON 17.0%London, ON 16.7%Halifax, NS 16.3%Montreal, QC 15.8%Ottawa, ON 15.8%Winnipeg, MB 15.6%Toronto, ON 15.6%Calgary, AB 15.0%

FIGURE 8

MILLENNIAL POPULATION CHANGE* (2009-2014)

* Millennial ages 20-29 Years living in cities/regional municipalities. Source: Environics Analytics, 2015.

* Millennial ages 20-29 Years living in cities/regional municipalities. Source: Environics Analytics, 2015.

by Market


While this edition focuses on established tech companies in Canada, any discussion about tech talent requires some mention of the vibrant startup culture that drives this industry. While more difficult to quantify in Canada, today’s startups could become next year’s tech giants.

In our analysis of established tech companies, Waterloo does not rank higher than 7th despite making tech history with Blackberry. At its peak, Blackberry employed 11,000 people in Waterloo Region, some of which have relocated since the company’s decline, but there remains an active tech market with nearly 6,000 employees working in established tech companies in 2015. Many displaced employees are leveraging their past experience at the tech giant and are working at startups that do not meet the threshold for reporting by Statistics Canada (1,500*+ employees). The power of this startup community is

reflected in the fact that 22% of office leases in Waterloo were completed by tech companies, many smaller sized yet growing. This sector continues to drive construction and conversion of office towers in downtown Waterloo.

While there is much to be gained from analyzing larger tech-companies, as they have the ability to move markets and provide a representative sample of what tech tenants require, it is also important to recognize the next generation of tech talent. Waterloo and other markets, including Ottawa, that did not rank highly in our analysis have the ability to attract, support and incubate the firms that will become well established and help elevate their rankings in future editions of this report.

//what is a startup city?

*As per Labour Force Survey by Statistics Canada, NOC code estimates that fall below the confidentially threshold have been suppressed. Confidentiality threshold as follows: 1,500 employees for ON, AB, BC; 500 employees for NS, MB.


Employee wages are generally the greatest cost for companies within tech-talent markets. These highly-skilled and educated workers command on average 45% more than average non-tech salaries in Canada. Calgary ranked the highest for average tech worker salary at over $83,000 as salaries remain elevated following a strong energy market performance – approximately $3,500 more than the next highest market, Ottawa. The average tech worker wage in six of the top 10 tech-talent markets is above the Canadian tech worker average.

Office rent is the second highest cost for technology companies, especially those who pursue the benefits of tech clustering and target specific submarkets where office space conversions and character-filled space are located. The result of which is heightened competition

for unique office space and a spike in rental rates in certain areas. The strongest example of this is Vancouver, which has the highest average office rents followed by Calgary and Toronto. One would expect Calgary rental rates to decline given increasing office vacancy. Despite being the second largest city by population, Montreal has the sixth highest office rent which provides the city with a competitive advantage equal to midsized markets like Edmonton, Ottawa and Halifax.

how do commercial real estate costs impact tech talent?//


FIGURE 10

AVERAGE CANADIAN MARKET TECH EMPLOYMENT BREAKDOWN (2015)

Managers 8%

Technology and Engineering

Related 18% Software Developers

and Programmers29%

Computer Support, Database & Systems

45%



Source: Statistics Canada, May 2016; CBRE Research (Metro Area), Q2 2016.

FIGURE 11

ESTIMATED 1 YEAR COSTS BY MARKET: WAGE AND RENT OBLIGATION FOR TYPICAL TECH FIRMTypical Tech Firm Estimates: 500 Employees, 75,000 Sq. Ft.

CityRent Cost

(Avg Rent x 75,000 SF)Tech Talent Wages

(Avg. Wage x 250 People)Support Non-Tech Wages

(Avg. Wage x 213 People)Management Wages(Avg. Wage x 37 People)

Total Estimated Cost

Calgary, AB $2,677,593 $20,825,810 $12,914,725 $3,357,759 $39,775,886 Ottawa, ON $2,433,000 $19,931,612 $12,193,641 $3,670,672 $38,228,926 Edmonton, AB $2,493,000 $18,843,923 $12,102,605 $2,999,344 $36,438,872 Toronto, ON $2,546,695 $18,541,305 $11,446,346 $3,502,094 $36,036,440 Vancouver, BC $2,983,420 $18,089,059 $10,368,271 $3,404,379 $34,845,129 Waterloo Region, ON $1,640,271 $18,024,193 $10,131,366 $3,445,214 $33,241,044 Montreal, QC $2,382,750 $17,061,090 $10,294,662 $3,214,169 $32,952,671 London, ON $1,772,250 $17,599,680 $9,450,480 $3,357,759 $32,180,169 Halifax, NS $2,056,500 $16,361,312 $9,870,529 $3,355,894 $31,644,235 Winnipeg, MB $1,765,500 $16,073,539 $9,511,786 $3,357,759 $30,708,583



Real Estate Outlook

High-tech companies are the top drivers of office leasing activity in Canada. Fueled by the addition of over 32,000 new tech jobs over the past five years, their national share of major leasing topped 2.0 million sq. ft. or 16.1% of all significant office leases1 in 2015. Many tech-talent markets, especially those with high concentrations or clusters of tech companies, have seen rising rents and declining vacancies as a result. Toronto’s downtown office market has emerged as one of the best performing in North America with vacancy dipping to a low 4.9% in Q2 2016.

The migration of talent to tech markets also has a profound effect on residential real estate. Although Vancouver is the most expensive market to rent an

apartment, according to the Canadian Mortgage and Housing Corporation, five of the top 10 markets have a cost of living above the Canadian national average. Comparing the annual average apartment rent to the annual average tech-worker wage in each market, even among the most expensive markets, tech wages are able to cover the high cost of living based on standard affordability measures which suggest allocating no more than 30% of income to housing.

how does tech talent impact commercial real estate?//

1 Includes top 25 largest transactions by sq. ft. each quarter for the markets tracked by CBRE Research.


REAL ESTATE MARKET OUTLOOKRANKINGS

1. Vancouver, BC2. Toronto, ON3. Ottawa, ON4. Calgary, AB5. Halifax, NS6. Edmonton, AB7. Waterloo, ON8. London, ON9. Winnipeg, MB10. Montreal, QC

FIGURE 12

% TECH OF TOTAL SIGNIFICANT LEASE ACTIVITY (2015)City Tech % of Total

Ottawa, ON 47.4%Vancouver, BC 28.5%Waterloo Region, ON 21.9%Montreal, QC 20.8%Toronto, ON 12.3%Halifax, NS 11.3%London, ON 6.1%Calgary, AB 1.8%Edmonton, AB 0.0%Winnipeg, ON 0.0%

Canada 16.1%

Source: CBRE Research (Office Market), Q2 2016.


Office tenants and investors can gain competitive advantage when formulating talent and real estate strategies:

• Top-ranked tech-talent markets are rich environments for innovation and talent attraction, a status that feeds upon itself and grows larger over time.

• Know where the momentum and up-and-coming markets are located, and how their unique characteristics can benefit your growth strategy.

• Identify which markets produce, attract and retain the most new tech talent.

• Identify surplus talent production markets that could be fertile ground for recruitment or establishment of new office locations.

• Millennial preferences for work and living locations and experiences are major drivers of tech-talent flow and ultimately innovation.

• Understanding market-by-market operating cost differences and tech talent pool composition helps fortify location decisions. Tech-talent flows are greatest into markets with the most opportunity for career growth, innovation and compensation.

• Real estate investors would be well-positioned to diversify their portfolios by following tech-talent trends.


Source: CBRE Research Q2 2016; CMHC 2015.

*Tech users typically concentrate within submarkets that experience higher demand and thus lower vacancy relative to the overall market.

Source: CBRE Research Q2 2016. Source: CMHC 2015.

FIGURE 15

APARTMENT RENT-TO-TECH WAGE RATIO

CityAnnualized

Apartment Rent2015 Average

Annual Tech WageRent-to-Tech Wage Ratio

Vancouver, BC $15,214 $72,356 21.0%Toronto, ON $14,514 $74,165 19.6%Edmonton, AB $13,641 $75,376 18.1%Halifax, NS $11,721 $65,445 17.9%Winnipeg, MB $11,103 $64,294 17.3%Calgary, AB $13,920 $83,303 16.7%Ottawa, ON $13,011 $79,726 16.3%Waterloo Region, ON $11,115 $72,097 15.4%London, ON $10,329 $70,399 14.7%Montreal, QC $8,859 $68,244 13.0%

FIGURE 13

OFFICE ASKING RENT BY MARKET (Q2 2016)

FIGURE 14

PURPOSE-BUILT APARTMENT ASKING RENT BY MARKET (2015)

CityAnnual Gross Direct

Asking Rent Per SFVacancy

Rate

Vancouver, BC $39.78 11.2%Calgary, AB $35.70 21.6%Toronto, ON $33.96 9.4%Edmonton, AB $33.24 13.4%Ottawa, ON $32.44 10.7%Montreal, QC $31.77 13.3%Halifax, NS $27.42 14.9%London, ON $23.63 17.1%Winnipeg, MB $23.54 9.8%Waterloo Region, ON $21.87 13.5%

CityAverage Purpose-Built

Apartment RentVacancy

Rate

Vancouver, BC $1,268 0.8%Toronto, ON $1,210 1.6%Calgary, AB $1,160 5.3%Edmonton, AB $1,137 4.2%Ottawa, ON $1,084 3.4%Halifax, NS $977 3.4%Waterloo Region, ON $926 2.4%Winnipeg, MB $925 2.9%London, ON $861 2.9%Montreal, QC $738 4.0%



//appendix

A1 © 2016 CBRE Limited


6%

7%

8%

9%

10%

11%

$31

$32

$33

$34

$35

$36

// SCORE

APARTMENT COSTS

EMPLOYMENT BREAKDOWN TECH INDUSTRY INDICATORS

EDUCATIONAL ATTAINMENT

TECH TALENT DIVERSITY

OFFICE RENT & VACANCY TRENDS*

POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 179,200 35.6% $73,356 12.6%Software Developers/Programmers 52,500 45.8% $76,177 15.0%Computer Support, Database & Systems 81,000 27.4% $70,557 10.6%Computer & Infor. Systems Managers 17,200 48.3% $94,654 20.3%Technology Engineering-Related 28,500 35.7% $65,239 360.0%

TOTAL NON-TECH OCCUPATIONS 285,400 4.6% $53,739 18.9%Sales 26,800 7.2% $58,242 8.0%Administrative & Office Support 161,500 -7.4% $41,287 10.8%Business Operations & Finance 97,100 32.3% $73,205 19.6%

Source: Statistics Canada LFS (NOCs), May 2016.

AVERAGE APT. RENT: $1,210 PER UNIT/MO.16% INCREASE SINCE 2010

Source: Environics Analytics, 2015.

Age Group0-9 Years

10-19 Years20-29 Years30-39 Years40-49 Years50-59 Years60-69 Years70+ Years

% Change4.5%

-3.4%7.3%7.7%

-3.5%16.0%24.3%15.5%

38.6% BACHELOR’S DEGREE OR HIGHER 25-64 Year Olds



Source: CMHC 2015.

1 Toronto, ON 85.77

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011 2012 2013 2014 2015 2016

Gross Rent ($)Vacancy (%)

#1TECH

TALENTRANKING

#1TECH

INDUSTRY OUTLOOK

RANKING

#2EDUCATION

RANKING

#2REAL

ESTATE OUTLOOK

RANKING

-50000 -25000 0 25000 50000 75000 100000 125000

FEMALE

MALE 77%23%


2016 SCORING TECH TALENT | CBRE ResearchA2

// SCORE2 Vancouver, BC 66.13

6%

8%

10%

12%

14%

$26

$30

$34

$38

$42

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15


TOTAL NON-TECH OCCUPATIONS 110,000 13.9% $48,377 11.9%Sales 11,200 16.7% $56,367 15.0%Administrative & Office Support 69,800 12.9% $41,799 6.6%Business Operations & Finance 29,000 15.1% $62,262 20.9%


AVERAGE APT. RENT: $1,250 PER UNIT/MO.14.5% INCREASE SINCE 2010


Age Group0-9 Years


% Change5.1%

-4.0%4.9%

10.3%-4.6%10.6%23.7%17.6%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#3TECH

TALENTRANKING

#2TECH

INDUSTRY OUTLOOK

RANKING

#3EDUCATION

RANKING

#1REAL

ESTATE OUTLOOK

RANKING

-20000 0 20000 40000 60000

FEMALE

MALE 82%18%





//3 Montreal, QC 58.80SCORE

6%

8%

10%

12%

14%

$26

$28

$30

$32

$34

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15




AVERAGE APT. RENT: $738 PER UNIT/MO.8.8% INCREASE SINCE 2010


Age Group0-9 Years


% Change11.6%-8.6%5.5%

10.4%-4.5%8.3%

13.9%13.9%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#2TECH

TALENTRANKING

#3TECH

INDUSTRY OUTLOOK

RANKING

#7EDUCATION

RANKING

#10REAL

ESTATE OUTLOOK

RANKING

-40000 -20000 0 20000 40000 60000

FEMALE

MALE 80%20%





//4 Ottawa, ON 58.50SCORE

6%

8%

10%

12%

14%

$26

$28

$30

$32

$34

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 65,400 9.2% $79,726 11.3%Software Developers/Programmers 19,500 -12.9% $80,428 -0.8%Computer Support, Database & Systems 30,500 16.0% $75,727 12.4%Computer & Infor. Systems Managers 6,400 28.0% $99,207 18.0%Technology Engineering-Related 9,000 45.2% $77,905 -0.8%

TOTAL NON-TECH OCCUPATIONS 65,000 -7.4% $57,247 10.8%Sales 4,800 26.3% $64,996 23.5%Administrative & Office Support 36,700 -9.2% $44,359 8.3%Business Operations & Finance 23,500 -9.6% $75,792 11.2%




Age Group0-9 Years


% Change5.4%

-6.2%11.0%

5.2%-6.5%12.2%21.3%15.5%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#4TECH

TALENTRANKING

#5TECH

INDUSTRY OUTLOOK

RANKING

#1EDUCATION

RANKING

#3REAL

ESTATE OUTLOOK

RANKING

-10000 0 10000 20000

FEMALE

MALE 73%27%





SCORE//5 Calgary, AB 49.80

6%

10%

14%

18%

22%

26%

$26

$30

$34

$38

$42

$46

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 37,400 19.1% $83,303 21.4%Software Developers/Programmers 10,400 11.8% $84,377 17.9%Computer Support, Database & Systems 13,400 -2.2% $78,404 13.0%Computer & Infor. Systems Managers 3,400 47.8% $81,063 N/ATechnology Engineering-Related 10,200 67.2% $89,392 43.5%

TOTAL NON-TECH OCCUPATIONS 64,500 -2.3% $60,633 15.7%Sales 5,500 7.8% $68,504 18.3%Administrative & Office Support 39,300 -3.4% $51,026 14.7%Business Operations & Finance 19,700 -2.5% $77,599 16.0%




Age Group0-9 Years


% Change19.9%

7.7%7.6%

19.8%6.3%

16.8%40.2%21.0%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#5TECH

TALENTRANKING

#4TECH

INDUSTRY OUTLOOK

RANKING

#9EDUCATION

RANKING

#4REAL

ESTATE OUTLOOK

RANKING

0 12500 25000 37500 50000

FEMALE

MALE 77%23%





SCORE//6 Edmonton, AB 34.06

6%

10%

14%

18%

22%

26%

$26

$28

$30

$32

$34

$36

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 21,700 13.6% $75,376 9.8%Software Developers/Programmers 4,900 19.5% $72,132 6.0%Computer Support, Database & Systems 9,700 3.2% $75,858 10.1%Computer & Infor. Systems Managers 1,600 60.0% N/A N/ATechnology Engineering-Related 5,500 19.6% $77,414 N/A





Age Group0-9 Years


% Change20.8%

2.9%10.5%25.3%

1.2%15.0%33.9%17.0%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#6TECH

TALENTRANKING

#8TECH

INDUSTRY OUTLOOK

RANKING

#5EDUCATION

RANKING

#6REAL

ESTATE OUTLOOK

RANKING

0 12500 25000 37500 50000

FEMALE

MALE 78%22%





SCORE//7 Halifax, NS 33.09

0%

4%

8%

12%

16%

20%

$20

$22

$24

$26

$28

$30

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 12,000 50.0% $65,445 18.1%Software Developers/Programmers 2,600 23.8% $66,171 11.4%Computer Support, Database & Systems 5,800 41.5% $62,286 16.7%Computer & Infor. Systems Managers 1,000 66.7% $90,700 N/ATechnology Engineering-Related 2,600 116.7% $62,052 N/A

TOTAL NON-TECH OCCUPATIONS 21,800 7.9% $46,341 16.1%Sales 2,300 53.3% $48,908 -1.5%Administrative & Office Support 13,400 -8.2% $37,856 15.7%Business Operations & Finance 6,100 48.8% $64,011 3.4%




Age Group0-9 Years


% Change1.9%

-14.6%2.8%4.7%

-11.1%7.8%

19.2%14.5%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#8TECH

TALENTRANKING

#7TECH

INDUSTRY OUTLOOK

RANKING

#4EDUCATION

RANKING

#5REAL

ESTATE OUTLOOK

RANKING

-10000 -5000 0 5000 10000

FEMALE

MALE 77%23%





SCORE//8 Waterloo Region, ON 32.52

0%

4%

8%

12%

16%

20%

$16

$18

$20

$22

$24

$26

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 7,100 108.8% $70,968 4.2%Software Developers/Programmers 4,600 35.3% $72,516 6.5%Computer Support, Database & Systems 2,500 N/A $68,121 N/AComputer & Infor. Systems Managers N/A N/A N/A N/ATechnology Engineering-Related N/A N/A N/A N/A

TOTAL NON-TECH OCCUPATIONS 15,000 11.1% $47,565 8.6%Sales 2,100 40.0% $59,472 14.9%Administrative & Office Support 10,200 6.3% $39,971 8.0%Business Operations & Finance 2,700 12.5% $66,992 1.5%




Age Group0-9 Years


% Change4.3%

-5.4%4.2%4.6%

-6.3%13.4%22.5%15.0%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#7TECH

TALENTRANKING

#6TECH

INDUSTRY OUTLOOK

RANKING

#8EDUCATION

RANKING

#8REAL

ESTATE OUTLOOK

RANKING

-5000 0 5000 10000

FEMALE

MALE 84%16%





SCORE//9 Winnipeg, MB 16.88

0%

4%

8%

12%

16%

20%

$16

$18

$20

$22

$24

$26

APARTMENT COSTS





POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 10,300 58.5% $64,294 8.1%Software Developers/Programmers 2,600 13.0% $65,197 4.4%Computer Support, Database & Systems 6,000 42.9% $64,458 11.5%Computer & Infor. Systems Managers N/A N/A N/A N/ATechnology Engineering-Related 1,700 N/A 62,335 N/A

TOTAL NON-TECH OCCUPATIONS 29,100 -12.1% $44,656 13.5%Sales 1,800 -14.3% $51,831 19.0%Administrative & Office Support 20,700 -18.2% $37,772 8.4%Business Operations & Finance 6,600 15.8% $64,290 11.1%




Age Group0-9 Years


% Change8.4%

-4.3%11.1%11.7%-7.4%8.2%

23.2%8.6%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#9TECH

TALENTRANKING

#10TECH

INDUSTRY OUTLOOK

RANKING

#10EDUCATION

RANKING

#9REAL

ESTATE OUTLOOK

RANKING

-10000 -5000 0 5000 10000 15000 20000

FEMALE

MALE 80%20%





SCORE//10 London, ON 12.99

8%

10%

12%

14%

16%

18%

20%

$20

$21

$22

$23

$24

$25

$26

APARTMENT COSTS




POPULATION TRENDS

Employment 2015

Growth 2010-15

Average Wage

Growth 2010-15

TOTAL TECH OCCUPATIONS 3,100 -38.0% $70,399 18.8%Software Developers/Programmers 1,500 -21.1% N/A N/AComputer Support, Database & Systems 1,600 -48.4% $70,399 23.7%Computer & Infor. Systems Managers N/A N/A N/A N/ATechnology Engineering-Related N/A N/A N/A N/A

TOTAL NON-TECH OCCUPATIONS 12,500 -2.3% $44,368 23.7%Sales N/A N/A N/A N/AAdministrative & Office Support 10,000 -11.5% $38,415 10.3%Business Operations & Finance 2,500 N/A $68,181 N/A




Age Group0-9 Years


% Change3.9%

-11.0%7.7%7.4%

-12.4%9.2%

17.7%13.4%




Source: CMHC 2015.


2011 2012 2013 2014 2015 2016

#10TECH

TALENTRANKING

#9TECH

INDUSTRY OUTLOOK

RANKING

#6EDUCATION

RANKING

#7REAL

ESTATE OUTLOOK

RANKING

-10000 -5000 0 5000 10000




Raymond Wong Director of Research, Canada + 1416 815 2353 [email protected]

Christina Cattana Senior Research Analyst +1416 847 3255 [email protected]

//contacts

Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE Limited clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE Limited.

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Documents

CBRE RESEARCHCBRE Research has ranked 10 of Canada’s largest cities by the number of tech-talent workers located there (Figure 2). This overall scorecard uses 13 metrics that together