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Rendering Courtesy of NBBJ
Amazon's "Rufus" headquarters project commands three city blocks in downtown Seattle and features three interconnected glass-and-steel domes.
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After five years of slow or no growth across many construction sectors, the technology industry's demand for new building stands out. While most markets are only gradually digging their way toward recovery, office starts in many regions are taking off, thanks in part to tech firms seeking more space for operations such as administration and data storage.
Much of the office activity is occurring in well-known tech hot spots, such as Seattle, where Amazon is building a 3.3-million-sq-ft new headquarters campus that consumes three downtown city blocks. In 2013, the city's office starts soared to $709 million, up 205% year-over-year, according to the latest revised data from McGraw Hill Construction Dodge (see table).
Analysts attribute most of the increase to Amazon's massive, three-phased project, dubbed Rufus 2.0, which includes three interconnected spherical glass-and-steel domes that can accommodate mature trees and plants from around the world. But Microsoft, Google and other tech firms also are building, expanding or renovating in the region.
"Office-building construction in Seattle is far ahead of [most] everyone else, largely because of Amazon and the high-tech sector," says Cliff Brewis, senior editorial operations director at Dodge, which shares the same ownership as this publication.
Office construction is up by about 100% or more in 19 of the 75 metro regions Dodge tracks. Some are dubbed "tech pockets," which include the San Francisco region (up 386%), where Apple is about to start building its new, $2.5- billion headquarters in Cupertino; Facebook's $435-million West Campus expansion of its Menlo Park, Calif., headquarters is under way; and Samsung America is erecting a $200-million headquarters in San Jose, Calif.
Not all the office sector's growth can be attributed to the tech industry. However, Apple, Facebook and Microsoft as well as smaller dot-coms are expanding their operations and kick-starting markets in select regions.
"Typically, white-collar employment results in absorption of office space, which leads to construction demand," Brewis says. The tech firms typically build offices near major universities in cities with good transit, housing and other amenities. "There's no doubt about the fact that techand all the new creative work being done, the new firms being created the wealth they are seeingis just incredible," Brewis says. "It results in hiring and offices going up in those marketplaces where tech plays a significant role."
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Demand From Tech Sector Helps to Reboot Office Market
Two major developments are bringing hundreds of engineering and high-tech jobs into Bells Corners, creating momentum for the oft-overlooked west-end neighbourhood.
Photo by Michael Hammond
Construction is underway on a new three-storey office building for engineering firm Golder Associates in Bells Corners.
By Michael Hammond
Construction recently began on a three-storey, 65,850-square-foot office building in the Bells Corners Technology Park, home to General Dynamics Canada. The new facility will be accompanied by the renovation of an existing 17,000-square-foot building, both of which will house the new Ottawa campus for engineering firm Golder Associates.
The $8.4-million project marks the first major commercial construction in Bells Corners in years.
Golders move from its Kanata location on Steacie Drive, combined with the growth of tech firm Fortinet, has injected optimism into Bells Corners at a time when commercial vacancy rates in Kanata remain the highest in the city at 13.4 per cent.
Earlier this year, Fortinet filled a long-vacant 27,000-square-foot space in the Lynwood Centre plaza on Robertson Road, bringing its workforce in the community to 125. That includes its engineering office on Moodie Drive.
Michael Anderson, Fortinets vice-president of global services and support, said the company will have as many as 160 employees by the end of the year and will add at least 100 more in 2015.
It was really important for us to be close to our facility on Moodie Drive, Mr. Anderson said, adding that the company did not want to disrupt its workforce. There were other choices in that area.
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Bells Corners office market bounces back
Published on June 24, 2014
The exterior of the Diefenbaker House Museum is seen at 246 19th St. W. -- a building John Diefenbaker owned from 1947 to 1977.
Herald photo by Tyler Clarke
Published on June 24, 2014
John Diefenbaker is seen talking with his gardener in front of his home at 246 19th St. W. in this undated photo.
Prince Albert Historical Society photo
Published on June 24, 2014
John Diefenbaker, right, is seen with his wife Edna and previous Progressive Conservative Party leader George Drew in his living room. Pictured behind the trio is a door to the sunroom -- a door Diefenbaker had removed.
Prince Albert Historical Society photo
The house former Prime Minister John Diefenbaker owned for 30 years still isnt considered a municipal heritage property.
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Long overdue historical designation going to Diefenbaker house