This document provides an overview of the high-technology office market in Canada in 2013. It finds that clustering continues in downtown submarkets which support collaboration and innovation. In 2012, venture capital investment in the Canadian high-tech sector totaled $719.0 million. Existing and emerging high-tech clusters will drive continued economic growth and reshape the commercial office landscape. The document then provides more detailed analyses of the high-tech office markets in Vancouver, Calgary, Montreal, Ottawa, and Toronto.

1. High-technology
Office Outlook
Canada 2013
Clustering continues in
downtown submarkets, often in
unconventional spaces which
support collaboration, innovation
and creativity.
In 2012, venture capital investment in the Canadian high-tech sector
totalled $719.0 million.

2. Existing high-technology clusters and
the emergence of new clusters will
drive continued economic growth
while also reshaping the commercial
office landscape.

3. Jones Lang LaSalle • Canada High-technology Office Outlook • 2013 3
Table of contents
Table of contents
3
In this report
4
High-technology office markets vs. Canada average
5
The high-technology economy
6
Venture capital, acquisitions and IPO activity
7
Local markets
8
Vancouver
9
Calgary
11
Montréal
13
Ottawa
15
Toronto
17

4. 4 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
In this report
Jones Lang LaSalle’s inaugural Canadian High-Technology Office
Outlook is a comprehensive study of one of the most dynamic and
innovative industries in Canada. Recent news has been focused on the
future of Canada’s once dominating cell phone producer, BlackBerry
Limited, but often overlooks businesses on the rise. There is still a
growing high-technology industry presence in Canada, with many
established companies in Toronto and Ottawa and a range of industries
such as gaming, multimedia and service oriented companies in Calgary,
Montréal and Vancouver.
Today, location plays an important role in the success of a hightechnology company. Whether it’s a start-up capitalizing on the
proximity of venture capitalists, a company in search of the best and
brightest, or an established brand continuing to expand, operating
in the right market with the right office space is paramount to future
growth, success and sustainability. In this report we take a closer look
at high-technology clusters in the markets of Toronto, Ottawa, Montréal,
Calgary and Vancouver, analysing their diverse nature, occupancy
patterns and future outlook.

5. Jones Lang LaSalle • Canada High-technology Office Outlook • 2013 5
High-technology office markets vs. Canada average
High-tech companies in Canada are constantly seeking out the most
talented and innovative employees to grow their business. This results
in companies locating in downtown markets that possess high-quality
amenities appealing to the younger workforce. In turn, these locations
are usually dynamic real estate markets as the amenities are attractive
to a number of industries looking to benefit and expand their businesses.
6.3%
7.7%
...Canada overall
s
ate
lr
Rents in core tech markets are
soaring...
asking 16.5% more than
the overall Canada office market.
.5%
6
Core tech markets: $18.88
Canada overall: $16.20
1
Due to desirability, Canada’s core high-tech markets demanded asking
rental rates 16.5 percent higher than the national average in the second
quarter, at $18.88 per square foot compared to $16.20 per square foot.
Additionally, rental rates in the core high-tech markets increased 5.6
percent from a year earlier, while the average Canadian asking rate
increased only 1.9 percent over this period. High demand for space in
the core markets also led to a vacancy rate of 6.3 percent in the second
quarter, more than 1.0 percentage point lower than the national average.
Core tech markets...
Re
nta
Over 5.0 million square feet of development is underway in both the
downtown Toronto and Calgary markets, and over half of all construction
in the country is taking place in core high-tech markets. As the amount
of construction in the downtown markets across the country increases,
forward-thinking high-tech companies are taking advantage of the
opportunity to influence developers. By designing their office spaces
to foster creativity and productivity from the onset they can further
their recruitment initiatives. New developments are looking to increase
building system efficiencies while offering an environmentally-friendly
product, characteristics desired by many office industries but especially
relevant to companies reliant on technology.
Vacanc
y
rate
Rent growth
Asking rents increased in core
tech markets by 5.6% in the
past 12 months vs. the Canada office
overall increasing by just 1.9%
5.6%
Construction
/2
Core tech markets
comprise
more than
1
of all
new office
construction
under way in Canada

6. 6 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
The high-technology economy
Patents
While not on the same scale as the global technology leaders,
Canada’s high-tech market is continuing to experience growth and
innovation. In 2012, 20,927 patents were granted in Canada, a 5.8
percent increase from a year earlier. While the mechanical/civil sector
was responsible for generating the greatest amount of patents, 3,045,
or 14.6 percent of all patents, were computer-related. Canadian
companies were issued 2,369 of the patents granted in Canada,
while the remainders were generated by foreign companies. In 2012,
Canadian companies were issued 15.0 percent more patents by the
United States Patent and Trademark Office than in 2011, and 75.0
percent more than five years earlier.
The lack of major high-technology firms headquartered in Canada
may be offered as an explanation for the disparity in patents granted
compared to the world leaders, as large companies develop the
sector’s infrastructure, attract highly-talented employees, draw on
the capabilities of other local companies, and ultimately generate the
greatest amount of patents. Research in Motion, now BlackBerry Ltd.,
was granted the most patents of any company in Canada in 2012,
obtaining 372 patents. However, it was the only Canadian company
among the top ten patentees in the country, a list which was dominated
by foreign natural resource and manufacturing companies. With the
uncertain future of BlackBerry Ltd. questions about the growth potential
of Canadian technology sector have been raised.
patents
2012
2011
5.8%
INCREASE
19,713
patents granted
in Canada
14.6%
20,927
patents granted
in Canada
of all patents in 2012 were computer-related
Source: Canadian Intellectual Property Office, Statistics Canada
Immigration
The government of Canada places a strong emphasis on promoting
and facilitating entrepreneurship to generate increased economic
activity and job growth, as small businesses employ 48.0 percent of
the country’s total labour force. Many of these companies are start-ups,
and roughly 5.0 percent of these rapidly expanding small businesses
contribute up to 45.0 percent of new jobs created in the country.
In order to take advantage of these businesses that grow at such
a quick rate, the Canadian government is actively looking to attract
immigrant entrepreneurs to contribute to the economic and innovative
growth of the country. Canadian immigration minister Jason Kenney
has announced that a new immigration visa will be available, aimed
at attracting technology-savvy immigrants. This new visa will offer
permanent residency to individuals who secure funding from Canadian
venture capital firms, and will be more flexible than H-1B visas in the
United States. Through the implementation of this visa, Canada hopes
to better compete with the growing number of countries looking to
attract foreign talent and expand their high-technology industry.
Canada’s immigration policies have already prompted technology
companies such as Microsoft and Amazon to expand their Canadian
presence in order to capture a more diverse workforce.

7. Jones Lang LaSalle • Canada High-technology Office Outlook • 2013 7
Venture capital, Acquisitions and IPO activity
Acquisitions
Canada has a trend of unsustainability when it comes to high-tech
start-ups. Over the past five years, 75.0 percent of Canadian start-ups
that have been acquired have been bought by foreign companies.
Five out of six of the top acquiring companies over this period were
U.S. companies, with the only Canadian company on this list being
Blackberry Ltd. In addition to largely being acquired by foreign
companies, Canadian high-tech companies are often sold at a relatively
young age, limiting their average exit valuation; the average exit
valuation for a Canadian high-tech acquisition was $US100.0 million,
compared with a US company valuation of $US384 million in 2012.
In 2012, total venture capital investment activity in Canada was $1.5
billion, approximately the same amount as 2011, with a slight increase
to the number of innovative companies obtaining funding. Canadian
venture capital investment was led by the information technology
sector. Two hundred fourteen technology-sector businesses obtained a
total of $719.0 million, which is up 6.0 percent from the $678.0 million
invested in 2011. Software and internet-focused firms, which took
$345.0 million and $179.0 million respectively, were the most heavily
invested in technology subsectors. Information technology related
activity made up 49.0 percent of all venture capital investment in 2012.
IPO
Technology sector initial public offerings have been rare since 2002
as potential returns have not been deemed to be significant. Many
investors have been discouraged since the technology stock bust
in 2000, the bankruptcy of Nortel Networks Corp., and the recent
struggles of BlackBerry Ltd. However, after ending 2012 as the
top performing sector on the Toronto Stock Exchange, technology
investment trends could be changing. With falling commodity prices
and less confidence in the country’s resource sectors, investors are
looking more closely at high-tech companies. This can be seen through
the technology sector market value increasing 20.0 percent to $54.0
billion in 2013. The IPO of Halogen Software in May marked the first
Canadian technology IPO since Avigilon Corporation went public in
November 2011.
acquisitions
venture capital
Venture capital
Although Canada possesses a highly-skilled labour force and many
innovative entrepreneurial companies, it lacks the level of investment
seen in the United States. In 2012, Canadian innovative firms captured
only 44.0 percent of the venture capital invested in American innovative
firms, a share that has remained steady over the past few years. This
makes it difficult for Canadian firms to compete on an international
level and realize their full potential, and in turn often leads to start-ups
being bought out by foreign companies. The federal government has
announced that it will contribute $400.0 million into Canadian venture
capital in an attempt to address this issue.
2012
6%
Kitchener’s Desire2Learn Inc.
INCREASE
In
venture capital activity
in Canada totalled
venture capital
obtained by
techology firms in
BILLION
was a total of
(Investors: New Enterprise
Associates, OMERS Ventures)
214 technology
firms obtained
venture capital in
for a total of
$1.5
2011
$678.0
MILLION
Vancouver’s D-Wave System Inc.
2012
(Investors: In-Q-Tel, Bezos
Expeditions)
49%
$719.0
MILLION
LightSpeed Retail Inc.
(Investors: Accel Partners)
5 YEARS
75%
of Canadian high-tech start-ups
have been acquired by
foreign companies
1
2
5
6
FIVE out of SIX
of the top acquiring companies
over this period were U.S companies
$35M
FINANCING
$31M
SecureKey Technologies Inc.
(Investors: Intel Capital, Visa,
MasterCard, Discover Financial
Services, Rogers Venture
Partners, TELUS Corporation)
$30M
FINANCING
Top acquiring companies
3
4
FINANCING
FINANCING
of all venture capital
investment in 2012 was
made up of Information
technology related activity
Over the past
$80M
(and total acquired in 2012)
(6)
(5)
(4)
(4)
(3)
(3)
Source: CVCA, Statistics Canada
MaRS Market Intelligence

8. 8 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013

9. 10 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Vancouver
Vancouver
Stabilizing
Q: What types of high-tech companies are you seeing in your market?
A: The high-tech landscape isn’t dominated by any particular segment
of the industry. There is a strong presence of film production, ecommerce, software, information and communications technology,
gaming, and electronic product and equipment manufacturing
companies throughout Greater Vancouver.
Q: Has incubator, accelerator, or co-working space helped in facilitating
start-up growth in your market?
A: Yes, and both venture capitalists and entrepreneurs have noticed
the benefits. Aside from established programs like the government- and
industry-sponsored Wavefront and privately-financed Growlab, all major
post-secondary schools in the region have an incubator that is aligned
with their respective programs, students and alumni.
Q: When did high-tech become a truly emerging or growing industry in
your market?
A: Vancouver’s high-tech roots can be traced as far back as
MacDonald, Dettwiler and Associates and EA Sports being founded in
1969 and 1982, respectively. More recently, leading companies such as
Global Relay, Sierra Systems, Vision Critical, Elastic Path Software,
Absolute Software, Avigilon and Hootsuite have helped the industry
grow and gain prominence in Vancouver.
Q: What does the future of high-tech look like in your market?
A: The future of the high-tech industry in Vancouver is very promising
as the majority of successful local companies are stable or expanding
and several prominent international companies have entered the market
in recent years. It is not uncommon for these companies to expand
quickly once they establish a presence in Vancouver and we expect that
trend to continue. The gaming industry has taken a step backwards
recently as some established companies have moved their operations to
Quebec and Ontario due to more generous tax incentives in those
provinces, but overall the local high-tech industry is very strong.
High-tech services vs. office-using employment
High-Tech
Services
40,000
High Tech Services Employment
Office Employment Less High Tech
$112.0 M 13.0%
High-Tech VC funding
2012
Source: Statistics Canada, CVCA, Thomson Reuters, 2013.
ce: Statistics Canada, CVCA, Thomson Reuters, 2013.
Share of Canada
High-Tech VC funding
30.7%
60
Population 25+ with
Bachelors degree or higher
Number of STEM-related
secondary educational
programs
$112.00
$112.00
$110.30
$111.00
$110.00
$109.00
$107.75
$108.00
$107.00
$106.00
$105.00
2010
2011
2012
Computer/Electronic Product Manufacturing
17%
17%
140,000
Electrical Equipment Manufacturing
E-Retailers
9%
12%
4%
2%
150,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Annual job growth
2012
$113.00
200,000
160,000
32,000
High-tech manufacturing
and services jobs
Office-Using
170,000
34,000
+3.3%
High-tech employment composition
180,000
36,000
52,369
VC funding Information Technology Sector ($ CAD millions)*
190,000
38,000
30,000
Jobs
Growing
early stage
Economic scorecard
Venture capital
Contracting
Education
Growing
late stage
39%
Computer Systems Design Related Srvcs.
Data Processing, Hosting Related Srvcs.
Other Information Srvcs.
Software Publishers

10. 11 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Vancouver
Vancouver
Q: How are landlords meeting the demands of high-tech companies
interested in flexible lease terms and space?
A: Landlords realize the cyclical nature and uncertain growth patterns of
high-tech companies so they have demonstrated a willingness to offer
shorter and more flexible terms in order to keep high-tech tenants within
their portfolios.
Q: Where do high-tech companies prefer to be located in your market?
Why?
A: High-tech companies can be found in clusters throughout Greater
Vancouver but are highly concentrated in the downtown submarkets of
Gastown and Yaletown. These neighboring nodes have long been
desirable locations for high-tech companies due to the vibrant nature,
character brick and beam office buildings, proximity to the CBD, access
to rapid transit and the abundance of residential developments in the
immediate area.
Cost
$33.05
Overall average
office rental rate
Supply
Q: Do recent high-tech lease transactions represent growth, or are
companies mostly staying the same size?
A: Most companies with an established Vancouver presence are stable
or expanding. Companies that have recently entered the market such as
Amazon, Salesforce and Facebook have started with relatively large
footprints and some have already expanded, indicating that Vancouver
has proved to be a successful location for them.
Office scorecard
Overall office vacancy
Total office under
construction
0.6%
Overall net absorption
(12 months)
Net absorption
(% of inventory)
10.7%
High-tech services jobs
as share of office jobs
22
Select high-tech submarkets
Downtown Core
SAP
Address: 910 Mainland Street
Yaletown
200,000 s.f.
180 months
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
Coal Harbour
3
520 West Georgia Street
Downtown Core
Confidential
Confidential
Rent: West Pender Street
$43.00
1555
Downtown Core
Vacancy:
18%
18,500 s.f.
12-month 24 months
net absorption:
1.2 m.s.f.
$40.29
+3.0%
4.4%
-196,300 s.f.
Yaletown
Amazon
33
Palo Alto
Facebook
Annual rent growth
7.6% 3.6m s.f.
Top three recent lease transactions
11
+3.1%
308k s.f.
Demand
Q: What amenities and attributes make your market appealing to hightech companies?
A: The lifestyle and natural surroundings, schools such as VFS and
BCIT that produce world class talent, a strong local economy, the sharing
of a time zone with other western high-tech hubs and the relatively easy
commute to Silicon Valley are just a few reasons why high-tech
companies gravitate to Vancouver.
Gastown
2
Yaletown
1
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$38.61
+4.2%
4.0%
-20,300 s.f.
Gastown
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$29.68
+7.6%
2.7%
40,200 s.f.

11. 12 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Calgary
Calgary
Contracting
Growing
early stage
Stabilizing
Economic scorecard
Q: Have you seen an increase in employee migration to your market as
a result of new high-tech jobs?
A: This trend has not been observed in the greater Calgary market. The
vast majority of employee migration in Calgary is related to oil gas
companies, specifically oil field services companies and professional
fields such as engineers, geologists and geophysicists
Q: Do recent high-tech lease transactions represent growth, or are
companies mostly staying the same size?
A: In May 2013 Smart Technologies conducted a sale and leaseback of
its Calgary corporate headquarters. The building was sold for $77.0
million to HOOPP Realty Inc and Smart subsequently signed a 20 year
lease with HOOPP. Overall, in Calgary, the high-tech sector remains
stable in terms of tenant demand.
Education
Q: What types of high-tech companies are you seeing in your market?
Is there a particular specialty?
A: The most prominent high-tech company in Calgary is Smart
Technologies whose office is in the Research Park at the University of
Calgary. Smart develops interactive and collaborative education
software programs used throughout the world in schools, colleges, and
universities. In Calgary, they have 4,695 employees, making them the
largest high-tech employer in the city. Another noteworthy company is
Harris Canada. Harris is a high-tech firm that focuses on communication
equipment and telecom networks servings businesses. They are the
second largest high-tech employer with 840 employees.
Venture capital
Jobs
Growing
late stage
18,488
+11.3%
High-tech manufacturing
and services jobs
Annual job growth
2012
$57.0 M
6.6%
High-tech VC funding
2012
Share of Canada
VC funding
53.0%
38
Population 25+ with
Bachelors degree or higher
Number of STEM-related
secondary educational
programs
VC funding Information Technology Sector ($ CAD millions)*
$57.00
$60.00
$50.00
$40.00
$30.00
$20.00
$11.60
$10.06
2010
2011
$10.00
$0.00
High-tech services vs. office-using employment
High-Tech
Services
25,000
High-Tech Services Employment
Office Employment less High-Tech
High-tech employment composition
15,000
10,000
5,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Statistics Canada, CVCA, Thomson Reuters, 2013.
Computer/Electronic Product Manufacturing
Office-Using
20,000
-
2012
230,000
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
13%
12%
Electrical Equipment Manufacturing
E-Retailers
Computer Systems Design Related Srvcs.
Data Processing, Hosting Related Srvcs.
75%
Other Information Srvcs.
Software Publishers

12. 13 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Calgary
Calgary
Q: How are landlords meeting the demands of high-tech companies
interested in flexible lease terms and space?
A: Many fast-growing companies are undertaking short-term trials at
furnished office spaces such as Regus. Regus business centers house
many smaller high-tech companies who need office space but do not
have the financial covenant to take on a lease. Regus business centers
are located in the Beltline, Suburban South, and Suburban North in
Calgary.
Cost
Office scorecard
$37.08
Overall average
office rental rate
Supply
Q: Is there an anchor tenant in your market that other high-tech
companies have clustered near?
A: This is not the case in Calgary. High-tech firms occupy downtown
space, suburban space, and flex space but are not centered in one
district or sub-market in the Calgary region.
+5.2%
Annual rent growth
6.4% 4.9m s.f.
Demand
Overall office vacancy
Total office under
construction
385k s.f.
Q: What amenities and attributes make your market appealing to hightech companies?
A: Calgary is no different than other Canadian markets in this regard.
High-tech companies often employ many young persons who definitively
want to be near restaurants and coffee shops.
0.6%
Overall net absorption
(12 months)
Net absorption
(% of inventory)
7.0%
High-tech services jobs
as share of office jobs
Top three recent lease transactions
11
Select high-tech submarkets
Downtown
Smart Technologies
3636 Research Rd NW
Suburban North
204,869 s.f.
240 months
22
Online Enterprise Inc.
Suburban North
SAS Canada
Rent:
$43.00
517-10th Ave. SW
Vacancy:
18%
Beltline
12-month 19,297 s.f.
60 months m.s.f.
net absorption:
1.2
$40.01
+18.6%
3.6%
160,279 s.f.
Beltline
1
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
639-5th Ave. SW
Downtown West
8,150 s.f.
120 months
33
Palo Alto
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
2
3
Downtown
Beltline
$30.99
7.6%
10.5%
-227,598 s.f.
Suburban North
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$31.75
12.5%
10.6%
-111,318 s.f.

13. 14 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Montréal
Montréal
Contracting
Growing
early stage
Stabilizing
Q: Have you seen an increase in employee migration to your market as
a result of new high-tech jobs?
A: In the last 10 years, we have seen a significant increase in high-tech
employment across the Montréal market. In fact, the GDP resulting from
this sector’s activities has increased by nearly 25 percent over the last
decade. The industry currently represents nearly $9 billion and accounts
for roughly 10 percent of Montréal’s total GDP.
Q: What does the future of high-tech look like in your market?
A: The future of the high-tech industry in Montréal is still precarious.
Aside from large multinational organizations who are well established in
the city, smaller organizations still rely heavily on municipal and
provincial tax incentives. On the bright side, the provincial government
has recently announced a 10-year extension to the Development of EBusiness tax credits.
High-tech services vs. office-using employment
High-tech services employment
Office-Using Employment, Less high-tech
55,000
50,000
45,000
2001
2003
2005
2007
2009
97,141
+2.3%
High-tech manufacturing
and services jobs
Annual job growth
2012
$92.2 M 10.7%
High-tech VC funding
2012
Share of Canadian
High-tech VC funding
17.1%
28
Number of STEM-related
secondary educational
programs
Population 25+ with
Bachelors degree or higher
VC funding Information Technology Sector ($ CAD millions)*
$167.09
$180.00
$160.00
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00
$104.80
$92.20
2010
2011
2012
High-tech employment composition
60,000
40,000
Venture capital
Q: What types of professionals are drawn to Montréal? Why?
A: The high-tech job market in Montréal benefits from well educated
workers driven by a large amount of post-secondary STEM-related
programs. Since 1999, Montréal has invested the most money in
university research programs in Canada. The vast majority of
professionals in the high-tech sector in Montréal are information
systems analysts and consultants, electrical and electronics engineers,
and user support technicians.
Education
Q: What types of high-tech companies are located in your market?
A: The high-tech sector in Montréal is comprised mostly of companies
in five complementary fields: IT services, manufacturing, multimedia,
and software.
High-Tech
Services
65,000
Economic scorecard
Jobs
Growing
late stage
2011
Source: Statistics Canada, CVCA, Thomson Reuters, 2013.
Computer/Electronic Product Manufacturing
Office-Using
380,000
375,000
370,000
365,000
360,000
355,000
350,000
345,000
340,000
20%
Electrical Equipment Manufacturing
19%
E-Retailers
3%
2%
14%
2%
40%
Computer Systems Design Related Srvcs.
Data Processing, Hosting Related Srvcs.
Other Information Srvcs.
Software Publishers

14. 15 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Montréal
Montréal
Q: What amenities and attributes make your market appealing to hightech companies?
A: Montréal has a favorable Research and Development environment
with advantageous tax incentives making the city competitive in terms of
total tax burdens in comparison to other major North American cities.
Cost
Office scorecard
Q: Do recent high-tech lease transactions represent growth, or are
companies mostly staying the same size?
A: Recent high-tech lease transactions have been characterized by
companies staying in the same location without taking on additional
office space. Furthermore, we are currently seeing a large amount of
available sublease in the downtown market coming from companies in
the high-tech industry.
$27.02
Supply
Overall average
office rental rate
Q: Is there an anchor tenant in your market that other high-tech
companies have clustered near?
A: There are no anchor tenants around which other high-tech
companies have clustered in Montréal. The city is comprised of smaller
high-tech firms who have clustered around new office developments in
two different sectors of downtown. Furthermore, Montréal is home to
foreign subsidiaries including IBM, Ubisoft, Electronic Arts, SAP,
Ericsson, and Nokia.
9.3% 2.5m s.f.
Overall office vacancy
Demand
Overall net absorption
(12 months)
Select high-tech submarkets
Downtown
75 Queen
Downtown
21,081 s.f.
60 months
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
15
Midtown
Ubisoft
2
520
West End
720
$31.34
+0.7%
6.8%
-679,463 s.f.
Midtown
3
Downtown
5505 Saint-Laurent
Midtown
248,821 s.f.
120 months
Toon Boom Animation
Rent: 4200 Saint-Laurent
$43.00
Midtown
Vacancy:
18%
12,000 s.f.
12-month 60 months
net absorption:
1.2 m.s.f.
Net absorption
(% of inventory)
High-tech services jobs
as share of office jobs
Compuware
33
Palo Alto
Total office under
construction
16.4%
Top three recent lease transactions
22
Annual rent growth
-175k s.f. -0.2%
Q: Where do high-tech companies prefer to office in your market?
Why?
A: High-tech tenants have traditionally clustered themselves around
Technoparc Montréal, located in the West End and downtown in the
Multimedia City and E-Commerce buildings. In recent years, we have
also seen some companies looking for more affordable office space
relocate to the Midtown market.
11
+0.3%
1
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$23.00
+1.5%
12.2%
465,882 s.f.
West End
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$24.24
+3.8%
14.1%
-150,152 s.f.

15. 16 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Ottawa-Gatineau
Ottawa-Gatineau
Stabilizing
Q: What types of high-tech companies are you seeing in your market?
A: The strength of Ottawa’s economy lies in the diversity of its
industries, particularly the high-tech industry. Knowledge-based support
services sector is Ottawa's largest with 570 companies, followed by the
software sector with a total of 363 companies. IBM is now Ottawa’s
largest employer outside of the public sector.
Q: When did high-tech become a truly emerging or growing industry in
your market?
A: The emergence of Ottawa’s high-tech sector began with National
Research Council (NRC) research into telecommunications technologies
in the 1950s and 1960s. ATT disposal of Canadian assets in 1961 to
Bell Canada led to the creation of Northern Telecom, which eventually
became known as Nortel when purchased by Bell Northern Research
(BLR), a spin-off of NRC. Nortel became the anchor for an entire cluster
of high-tech telecommunications firms and government labs until its
collapse and liquidation in 2003.
Q: What does the future of high-tech look like in your market?
A: The future of high-tech in Ottawa and Canada as a whole is not too
optimistic for several reasons. Angel investors are looking towards
assets that will provide greater returns and lower risks, and have
subsequently turned to the oil sand developments in Canada’s western
regions. There has also been a trend of exploitation and acquisition of
Ottawa’s high-tech companies with patents and knowledge-based
resources by U.S companies, inhibiting the growth of high-tech
companies in the National Capital Region.
Jobs
Growing
early stage
Economic scorecard
Venture capital
Contracting
Education
Growing
late stage
36,330
-1.9%
High-tech manufacturing
and services jobs
Annual job growth
2012
$115.1 M 13.4%
High-tech VC funding
2012
Share of Canadian
High-tech VC funding
38.3%
19
Population 25+ with
Bachelors degree or higher
Number of STEM-related
secondary educational
programs
VC funding Information Technology Sector ($ CAD millions)*
$140.00
$115.10
$120.00
$97.41
$100.00
$72.60
$80.00
$60.00
$40.00
$20.00
$0.00
High-tech services vs. office-using employment
High-Tech
Services
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
High-Tech Services Employment
Office Employment less High-Tech
2010
2011
2012
High-tech employment composition
Computer/Electronic Product Manufacturing
Office-Using
185,000
5%
6%
18%
Electrical Equipment Manufacturing
180,000
E-Retailers
175,000
Computer Systems Design Related Srvcs.
170,000
Data Processing, Hosting Related Srvcs.
165,000
2003
2005
2007
2009
2011
Source: Statistics Canada, CVCA, Thomson Reuters, 2013.
160,000
71%
Other Information Srvcs.
Software Publishers

16. 17 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Ottawa-Gatineau
Ottawa-Gatineau
Q: Is creative space in high demand, and if so, how has it out-performed
the traditional office sector?
A: Flex space, which eliminates operational silos allowing for
collaboration and knowledge exchange among employees, is a trend on
the rise in all industries, but particularly among start-up high-tech
companies. These companies look to reduce costs and drive innovation
by adopting a flex workspace. A key player that has implemented this
trend is Ottawa-based company, Shopify Inc., a powerful ecommerce
website solution that allows businesses to sell online by providing the
resources to create an online store.
Cost
$31.11
Overall average
office rental rate
Total office under
construction
295k s.f.
0.7%
Overall net absorption
(12 months)
Net absorption
(% of inventory)
8.3%
High-tech services jobs
as share of office jobs
Select high-tech submarkets
5
Blackberry
Kanata
450 March Road
Kanata
72,684 s.f.
72 months
22
Annual rent growth
Overall office vacancy
Top three recent lease transactions
11
+1.9%
5.4% 2.3 m s.f.
Supply
Q: Where do high-tech companies prefer to office in your market? Why?
A: Historically, most high-tech companies have located in Ottawa’s
Kanata submarket. Due to increased entrepreneurship in Ottawa, there
has been a trend of locating start-up high-tech companies in unique
spaces in Ottawa’s downtown submarket. More specially, these
companies are locating in the Byward area, Ottawa’s entertainment
district. This trend is due to the ease of accessibility and appeal of this
submarket in attracting young talent.
Office scorecard
Demand
Q: Is there an anchor tenant in your market that other high-tech
companies have clustered near?
A: At the time of expansion for Ottawa’s high-tech sector in the mid
1970s, emerging companies clustered around Nortel located in Ottawa’s
Kanata submarket. This submarket soon earned the nickname “Silicon
Valley of the North.” Even after the liquidation of Nortel, established hightech companies continued to occupy the Kanata region. Most notable
tenants include BlackBerry Ltd., formerly Research in Motion and; Mitel
Networks Corporation, founded by former Nortel employees Michael
Copland and Terry Matthews.
Downtown
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$24.43
+1.5%
12.8%
107,114 s.f.
Pleora Technologies
390 March Road
Kanata
19,667 s.f.
60 months
33
Palo Alto
Halogen
Rent:
$43.00
40 Hines
Kanata
Vacancy:
18%
27,037 s.f.
12-month 52 months
net absorption:
1.2 m.s.f.
Downtown
3
1
2
417
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$39.02
+3.0%
4.4%
317,137 s.f.

17. 18 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Toronto
Toronto
Stabilizing
Q: What types of high-tech companies are you seeing in your market?
Is there a particular specialty?
A: Innovation in Toronto’s high-tech market is derived from the
collaboration of a wide variety of subsectors. Service companies
comprise approximately 95 percent of total high-tech firms, with
computers, and electronics making up the remainder of the industry.
Q: Has Incubator, accelerator, or co-working space helped in facilitating
start-up growth in your market?
A: Yes, educational institutions and incubators can be found throughout
the Greater Toronto Area (GTA), helping new firms and technology
subsectors build on clusters of established communications, software,
manufacturing, and broadcasting businesses. The Ontario Network of
Excellence, a government-funded program, provides a wide variety of
services to assist young entrepreneurs and small businesses.
Q: What does the future of high-tech look like in your market?
A: Government initiatives such as the Ontario Emerging Technologies
Fund, as well as increased angel financing are helping entrepreneurs to
meet the needs of early-stage businesses. Software companies and
communications and networking companies are receiving the most
consistent investments while electronics, computer hardware, and
medical equipment have been harder pressed to obtain funding.
Q: What types of professionals are drawn to your market? Why?
A: The GTA high-tech market has a young workforce, with over 60
percent of workers being under the age of 45. The vibrant and diverse
entrepreneurial culture of Toronto makes it an attractive market for both
high-tech companies and highly educated individuals looking to
establish a business or career.
154,670 +11.7%
Jobs
Growing
early stage
Economic scorecard
High-tech manufacturing
and services jobs
Annual job growth
2012
$280.0 M 32.6%
Venture capital
Contracting
High-Tech VC funding
2012
Share of Canada
High-Tech VC funding
36.0%
61
Population 25+ with
Bachelors degree or higher
Education
Growing
late stage
Number of STEM-related
secondary educational
programs
VC funding Information Technology Sector ($ CAD millions)*
$300.00
$280.40
$248.50
$250.00
$233.17
$200.00
$150.00
$100.00
$50.00
$0.00
High-tech services vs. office-using employment
High-Tech
Services
Office-Using
110,000
100,000
90,000
80,000
70,000
2007
2008
2009
2010
2011
2012
Source: Statistics Canada, CVCA, Thomson Reuters, 2013.
ce: Statistics Canada, CVCA, Thomson Reuters, 2013.
2011
2012
High-tech employment composition
High-Tech Services Employment
Office Employment less High-Tech
120,000
2010
525,000
520,000
515,000
510,000
505,000
500,000
495,000
490,000
485,000
1%
2%
5%
Computer/Electronic Product Manufacturing
17%
Electrical Equipment Manufacturing
7%
7%
61%
E-Retailers
Computer Systems Design Related Srvcs.
Data Processing, Hosting Related Srvcs.
Other Information Srvcs.
Software Publishers

18. 19 Jones Lang LaSalle • Canada High-technology Office Outlook • 2013
Jones Lang LaSalle • United States • High-Technology Office Outlook • 2013
Toronto
Toronto
Q: What amenities and attributes make your market appealing to hightech companies?
A: Toronto’s high quality amenities, characteristic of a large metropolis,
draw talented individuals whom high-tech companies look to attract.
Toronto’s educational institutions actively partner with high-tech
employers. The city has also established a history of digital media
leadership, tax incentives, and government investment in research
and development.
Cost
$29.87
Overall average
office rental rate
Supply
Q: How are landlords meeting the demands of high-tech companies
interested in flexible lease terms and space?
A: Landlords are looking to increase desirability towards high-tech firms
through increased efficiencies in areas such as cooling, sustainability,
and other building strategies. Most new buildings are either LEED Gold
or Platinum as environmental consciousness increases. Landlords are
willing to give flexible lease terms – especially to the first tenant.
Landlords are also willing to invest in building upgrades to meet hightech tenants needs in exchange for longer leases and higher rates.
Office scorecard
+1.8%
Annual rent growth
8.6% 7.1m s.f.
Overall office vacancy
Total office under
construction
213k s.f.
Demand
Q: Do recent high-tech lease transactions represent growth, or are
companies mostly staying the same size?
A: Yes. Most recent leasing transactions show growth of high-tech
firms. Current examples are Cisco and Apple. Cisco recently signed a
100,000-square-foot lease at 88 Queens Quay West for 10 years, and
Apple will occupy 50,000 square feet at 120 Bremner in the downtown
south market.
0.1%
Overall net absorption
(12 months)
Net absorption
(% of inventory)
17.0%
High-tech services jobs
as share of office jobs
Top three recent lease transactions
11
Cisco
Select high-tech submarkets
Markham
400
407
88 Queens Quay West
Downtown South
100,000 s.f.
120 months
22
120 Bremner Blvd.
Downtown South
50,000 s.f.
120 months
33
Palo Alto
Deluxe Entertainment
Rent:
427
Apple Canada
$43.00
901 King Street West
Vacancy:KingDufferin
18%
60,000 s.f.
12-month 240 months
net absorption:
1.2 m.s.f.
401
2
1
3
Downtown
Downtown
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$37.65
+4.8%
5.4%
164,678 s.f.
Markham
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$25.59
-0.8%
10.2%
-120,111 s.f.
Mississauga
Rent:
Annual growth:
Vacancy:
Past 12-months
net absorption:
$26.41
-1.5%
12.1%
75,005 s.f.

19. Jones Lang LaSalle • Canada High-technology Office Outlook • 2013 9
Technologies of today will inevitably
be replaced by technologies of
tomorrow and markets that can
adapt and reinvent will remain at the
forefront of each crest.

20. About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients
seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70
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to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment
management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.
For further information, visit www.joneslanglasalle.ca.
About Jones Lang LaSalle Research
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For further information please contact:
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