We don't want no Silicon Valley – the Canadian city fighting for a new kind of tech hub

Toronto is being upstaged in the tech world by a sprightly little neighbour upstream: Kitchener-Waterloo. Image: Benson Kua

Last year, the mayors of Toronto and Kitchener, Ontario, shook hands over plans to develop new transit infrastructure connecting the big city and the little town.

One of many reasons was to facilitate the movement of high-skill, enterprising workers expected to cluster in the region over the next few years. The province has high hopes for the up-and-coming Innovation Corridor, calling it the next Silicon Valley, or rather Silicon Valley North.

But it’s not big-city Toronto at the heart of the region, but Kitchener-Waterloo (KW), Canada’s start-up city and the birthplace of smartphones.

Ever heard of Research in Motion, now renamed BlackBerry? It was homegrown by Jim Balsillie, a business grad, and Mike Lazaridis, an engineering student at the University of Waterloo.


This is important: KW’s success as a hi-tech hub is largely attributed to Waterloo’s international co-op program. Founded in the late 1950s, it built ties between the university and industry, transitioning the region from traditional textiles to technology manufacturing in the 1970s.

Professional scientific, tech and educational services were gradually booming, and academics were researching Canada’s Tech Triangle by the early 1990s. Fast-forward to 2017, and KW unveiled a new economic development strategy (Make it Kitchener), wooing tech leviathans – Google opened its regional headquarters in downtown Kitchener – and revamping its city core to attract and retain talent. It’s working.

BlackBerry is long gone, but against all expectations, the entrepreneurial spirit remains in KW. Lazaridis continues to invest in quantum computing, nanotech and engineering at Waterloo, and is the force behind Perimeter, a research institute devoted to theoretical physics.

Balsillie directs his efforts towards international affairs, and founded the Balsillie School of International Affairs and the Centre for International Governance Innovation with a special focus in international law. With the support of the provincial government, the international law research program hosts legal clinics, offering advice on intellectual property to start-ups in the region.

The revamped Walper Hotel in downtown Kitchener-Waterloo. Image: Filipa Pajevic

Balsillie is also behind Communitech, an incubator devoted to building and supporting the regional tech community. Former BlackBerry employees kick-started their own businesses, or were snatched up by other tech companies in KW. The city of Kitchener was adamant on keeping people around, offering space and a metaphorical shoulder to cry on until they could stand on their own feet again.

That’s what distinguishes KW from other tech hubs: it’s a community, a family that has your back no matter what. And they’re happy with that – they really don’t want to be another Silicon Valley Why? Because they see how detrimental a hi-tech super-cluster, like Silicon Valley, can be.

Sure, techies are stereotypically inward-looking, and millennials are more often than not considered – perhaps erroneously – selfish and apathetic. But these kids are more concerned with making KW proud than profitable. Even academics recognize that it is the community networks more than business networks that make for an interesting business climate in the region.

Vidyard’s CEO, a millennial, who grew up in Kitchener and has benefited from its community services, feels that the hip and upbeat internal culture of the tech community ought to extend outward to include other sectors and people. He wants KW to improve while avoiding the negative effects of gentrification.   

It may be a tech hub but it still looks incredibly dull from above. Image: Tom1973 via Wikimedia Commons

Likeminded individuals are working closely with local charities, getting involved politically and discussing affordable housing, re-defining volunteerism by offering their skills to the community. Furthermore, they talk to newcomers about homelessness and mental health issues, and the need to address both. When a business comes knocking at the door, the answer is not “what can I do for you”, but “what can you do for me?”

Still, inequality is hard to fix. Kitchener is not problem-free. Developers are building condos that are unlikely to cater to polarizing incomes, and the projected influx of people (especially given the change in political climate south of the border) will rock the boat some.

If all goes to plan, the tight-knit, locals-for-locals community of Kitchener-Waterloo may be the first of its kind – a tech hub that develops its brain without losing its heart.

Filipa Pajević researches urban planning at McGill University, Montréal, and is on Twitter as @filipouris

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A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.