Winnipeg Tech Sector - Positive Impact on Mortgage Investment
January 16, 2019 | Posted by: Ron Chan
One walk through Winnipeg’s Exchange District and you’ll note something is buzzing within the windows of the mid-nineteenth century construction. Buttoned down suit-and-tie types have been replaced with young, tech-savvy entrepreneurs in flannel and VANS as the offices are now delightfully flooded with IT companies. Yes indeed, the tech sector is on the rise in our central city. Right at this very moment innovations in artificial intelligence (AI) and machine learning are leading the charge, reinvigorating Winnipeg industry like never before. And there’s a spillover affect that has “in the know” investors in both residential and commercial real estate teeming with excitement as new opportunities unfold before them.
How is the booming tech sector going to benefit you, someone who is considering a mortgage investment? Let’s find out.
What the Rise of the Machines in Winnipeg Means for Your Residential and Commercial Investment Mortgage
Assurance for Your Commercial Investment
If you and/or your investment group is considering a commercial building mortgage in Winnipeg you couldn’t have picked a better time. Sure, commercial rates are very favorable compared to the rest of the country (especially when you use a well-connected mortgage broker) but in this instance we’re referring to occupancy. The last thing a commercial building investor wants to see is an empty building. You need assurance that your office spaces will be rented as near to capacity as possible. This is no pipe dream thanks to the fast growing tech sector.
Recent reports show that tech-related activity has assisted in dropping Winnipeg’s office vacancy rate down to just over 10 percent, which is the fourth lowest in Canada. This greatly increases the likelihood that you will find interested parties for your commercial space, be it a traditional office set-up in a densified district or outlying warehouse conversion, the latter of which is a very poplar choice amongst modern tech firms. The relatively low cost of talent (given the lower cost of living) in Winnipeg also works in your favor. Since tech firms are paying less for highly skilled staff, they have more room in their operating budgets for monthly rental rates, which equates an even better month ROI to you.
Long story short, your commercial investment is in a great position, and will be in better hands when you work with a commercial broker.
Confidence in Your Residential Investment
On its own, a residential mortgage makes great sense in Winnipeg, but when you factor in what’s happening in the tech sector you are primed for an amazing return on your investment.
The same growth in technology jobs that is delivering a boost to Winnipeg’s office market is also booming the residential market too. Higher level tech executives that have families in tow are renting out single detached family homes while both execs and staff are embracing the “live work and play” concept, gobbling up condominium rentals in densified mixed commercial-residential districts. You won’t have a problem finding tenants.
Need some hard numbers? The same study referenced above also notes that Winnipeg has added nearly 5,000 tech jobs in the last five years, averaging 1000 new jobs per annum, which brings the total up to nearly 17,000 careers in the tech sector, complete with a growth rate of nearly 40 percent! Not many industries can make that claim. The trend and subsequent demand for rentals is further spurred on by the student bodies enrolled in tech studies at Red River College and the University of Winnipeg, where both Canadian and international students alike are arriving in droves to join the movement. This trend in education will continue to feed the city’s established tech sector, along with your residential investment ambitions. And when you decide to flip your property (or properties) there will be hoards of IT professionals ready and waiting to buy.
Contact Ron Chan to capitalize, today.