Press "Enter" to skip to content

Are you ready for the Amazonians?

Haider-Moranis Bulletin: If you think housing prices and rents are unaffordable now, wait until the Amazon code warriors land to fight you for housing or a seat on the subway

Amazon.com Inc. has turned the search for a home for its second headquarters (HQ2) into an episode of The Bachelorette, with cities across North America trying to woo the online retailer.

The Seattle-based tech giant has narrowed down the choice to 20 cities, with Toronto being the only Canadian location in the running.

While many in Toronto, including its mayor, are hoping to be the ideal suitor for Amazon HQ2, one must be mindful of the challenges such a union may pose.

Amazon announced in September last year that its second headquarters will employ 50,000 high-earners with an average salary of US$100,000. It will also require 8 million square feet (SFT) of office and commercial space.

A capacity-constrained city with a perennial shortage of affordable housing and limited transport capacity, Toronto may be courting trouble by pursuing thousands of additional highly-paid workers. If you think housing prices and rents are unaffordable now, wait until the Amazon code warriors land to fight you for housing or a seat on the subway.

The tech giants do command a much more favourable view in North America than they do in Europe. Still, their reception varies, especially in the cities where these firms are domiciled. Consider San Francisco, which is home to not one but many tech giants and ever mushrooming startups. The city attracts high-earning tech talent from across the globe to staff innovative labs and R&D departments.

These highly paid workers routinely outbid locals and other workers in housing and other markets. No longer can one ask for a conditional sale offer that is subject to financing because a 20-something whiz kid will readily pay cash to push other bidders aside.

We wonder whether Toronto’s residents, or those of whichever city ultimately wins Amazon’s heart, will face the same competition from Amazon employees as do the residents of Seattle? The answer lies in the relative affordability gap.

Amazon employees with an average income of US$100,000 will compete against Toronto residents whose individual median income in 2015 was just $30,089. It is quite likely that the bidding wars that high-earning tech workers have won hands down in other cities will end in their favour in the city chosen for Amazon HQ2.

While we are mindful of the challenges that Amazon HQ2 may pose for a capacity-constrained Toronto, we are also alive to the opportunities it will present. For starters, Toronto can use 50,000 high-paying jobs.

GIG ECONOMY

The emergence of the gig economy has had an adverse impact in the City of Toronto, where the employment growth has largely concentrated in the part-time category. Between 2006 and 2016, full-time jobs grew by a mere 8.7 per cent in Toronto, while the number of part-time jobs grew at four times that rate.

While being the largest employment hub in Canada, with an inventory of roughly 180 million square feet, an influx of 8 million square feet of first-rate office space will improve the overall quality of commercial real estate in Toronto. It could also be a boon for office construction and a significant source of new property tax revenue for the city.

But those hoping the city itself might make money should seriously consider the fate of cities lucky enough to host the Olympics, which more often than not end up costing cities billions more than they budgeted for.

Toronto may still pursue Amazon HQ2, but it should do so with the full knowledge of its strengths and vulnerabilities. At the very least, it should create contingency plans to address the resulting infrastructure deficit (not just public transit) and housing affordability issues before it throws open its doors for Amazon.

Murtaza Haider is an associate professor at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at info@hmbulletin.com.

Site designed by Shafquat Arefeen
The motion also counters the NFLPA's assertion that the NFL's ruling is damaging to Elliott.Watson Tosses 3 TDs as Texans Beat Browns 33 17"We are extremely disappointed with Mr. 1. 1, the Monday before Super Bowl Sunday, revealing a switch form the 2015 ad's prehistoric setting to the future. But thankfully, it is also a land where the right to call out wrong is sacred. They look like grim reaper feet. And grassroots activists, public defenders, and juvenile experts are pressuring elected officials to simply stop charging kids as adults so that they can stay in juvenile programming, where they belong. In a league of men who crush bones and brains for a living, their offenses range from drunken misdemeanors to serious felonies such as the murder charge against New England's Aaron Hernandez this season and the murder/suicide by Kansas City's Jovan Belcher in 2012. In past 3 vs. In all this talking of political winners and losers, what gets forgotten is what moved a handful of NFL players to take a knee to begin with. For the Dallas Cowboy faithful, NFL Hall of Famer, Troy Aikman only ranks 41st All Time, with an 81.6 QB rating. Licensees typically need to submit an application and pay a fee. While the specialists say their services have cleaned up an industry rife with fraud, critics say their "expert authentication" is little more than pseudoscience used to generate millions cheap oakleys in profits at collectors' expense.. And he kept calling play action passes even though the 49ers were losing, the offense was averaging just 3.4 yards per carry and the Panthers were blitzing because they expected the Niners to pass. It was the first time Michigan had ever played Penn State, Mullendore said as he looked at the autographed magazine page framed on his wall. Admirers even dressed their children in youth uniforms of their beloved team.. Here's what you don't want to hear with Hurricane Irma bearing cheap china jerseys down, in some form, on South Florida: Anyone thinking the Dolphins game is at the forefront of public concern. I got your back. Richard Ellenbogen, co chair of the NFL's Head Neck and Spine Medical Committee, said the league is working to shift that culture. And maybe he does at least to some extent. This communication contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. So he's a good friend of mine and I want him to do what he wants to do," Trump said. The Seminoles would like to start the season over. But aside from the statistics, colleges and NFL scouts look for prospects with great work ethic and pandora charms good character.. It also requires skills that are as much about running a business as it is handling a sports team.Start at the cheap jerseys BottomThe first step toward becoming a general manager is getting a job in baseball. There are a lot of people I owe for where I'm at right now.". But the spots scored well almost every year in ad ranking services.. ESPN first reported the trade Tuesday morning.. Talk about that.. I been trying to think of ways to keep myself entertained without football since mofo's wanna have a NFL lockout. "There certainly going to be communities out there where a helmet, no matter what price point we come in at, is going to be maybe too expensive," he said. Family is much more likely to donate if they concerned about their loved one if they exhibiting symptoms or signs that are concerning them, or if they died accidentally or especially if they committed suicide, she said. Since NFL teams are in the business of trying to please their customers, not alienate them, they are understandably reluctant to sign a player who will be the subject of controversial news coverage every day. In an interview on CNN Miller said, I had any respect for her, it probably would have been hurtful. But that optimistic cheap jerseys view for pandora bracelet Kaepernick, the former Super pandora bracelet Bowl starter for the San Francisco 49ers who sparked a movement by players by refusing to stand for the anthem last season to protest the treatment of African Americans in the United States, is far from universal.