Google’s expansion means a lot less "brick and beam" office space in available in Kitchener.
On Friday, the tech giant announced it will lease 221,000 square feet of space in the Breithaupt Block facility – including 36,000 square feet that has yet to been built.
The move was applauded by many, who said it signalled Google’s long-term commitment to Waterloo Region.
But according to the real estate agent who sold the company on its new space, the relocation means just 8,000 square feet of brick and beam office space remains in Kitchener.
That has some worried that there's limited options for start-ups looking for an interesting office location.
“There’s that gap you have to cross where it’s too early and too raw and too messy for someone to see themselves there,” says John Lind at Colliers International.
Kitchener councillors say they plan to address the shortage with a $1 million dollar proposal that would give start-ups money for building upgrades.
“They’re as adverse to cubicles and drop ceilings as they are to suits and ties,” says councillor Scott Davey.
Lind expects Kitchener’s growing tech market to eventually reach more traditional office space, but in order for that to happen, developers will have to spend millions on building retrofits.
“You have to build it, and you have to show people what it’s going to look like often before they come and lease it,” notes Lind.
He says 305 King Street is the only tower that has started this costly process.
Kitchener’s tech retrofit program goes to committee at the end of the month. If it passes, it will become the first municipal start-up program of its kind in Canada.
