Share
Explore
Background
As part of ventureLAB's long-term strategy to position itself as Canada's leading community hub for startups focused on hardware and semiconductor technologies, the Innovation Space team is conducting a study to examine the organization's options for relocating the space from IBM's 3600 Steeles Avenue complex. This document summarizes the findings of that study, and it includes:
IBM Building Sale
An important reason why this analysis is timely is due to a notification provided on September 2022 by IBM Canada to ventureLAB regarding their decision to seek the sale of the 3600 Steeles Ave E complex as early as January 2023. Accordingly, there are three possible scenarios that ventureLAB ought to be prepared for:
In this case, we will likely be afforded a generous grace period during which the new owner will likely retain the existing space licensing agreement as they secure the necessary permits for demolition. A key consideration in that scenario will be the extent to which the new owner will continue to finance amenities, maintenance and security for the innovation space (if at all).
As above, the consideration in that case will be the quality of maintenance and security the new owner will provide ventureLAB.
In this case, as the sale may take place as early as December 2022, we may be forced to relocate by December 2023
Primary Considerations
Conveniences Lost As a Result of Relocation
If or when ventureLAB will be required to relocate the innovation space, we will possibly forfeit the following benefits:
ventureLAB currently spends $99,378 (FY2021) in annual licensing fees to IBM, in addition to $368,000, which constitute 80% of the sublicensing fees paid to ventureLAB by its tenants and dedicated desk members.
Startups cite the “IBM Headquarters” as a powerful reason to join the space
Inconveniences Spared As a Result of Relocation
Conversely, if we are required to move, we will no longer have to contend with the following hurdles:
What Companies Want
Based on conversations the Innovation Space team has had with a number of tenants in the space, we have found that the most common desirable facets for a new space include:
What ventureLAB Staff Want
Existing Floorplan
Space Requirement and Cost Estimate
Below is a detailed breakdown of:
Space Requirements for ventureLAB
Type of Space
Quantity
Total Size (sqft)
Utilization Rate
Minimum Area (sqft)
Desired Size (sqft)
Private Offices
20
12,500
Range: 250 - 1,400
80%
10,000
12,500
ventureLAB Office
1
1,900
0%
400
1,000
Multipurpose Zone
2
Atria: 3,900 (x2)C108 cubicle office: 1,200Total: 9,000
10%0%
1,500 (x1)
3,500 (x1)OR1,000 sqft demo zone + 2,500 sqft coworking zoneTotal: 3,500
HCI Lab
1
3,000
100%
3,000
3,000
Meeting Rooms
9
4,200
N/A
Big room: 800Small rooms (x2): 300Total: 1,400
Big room: 800Small rooms (x3) : 300vL room: 500Total: 1,600
Auditorium
1
1,900
N/A
1,200
1,900
Rec room
1
0
N/A
450**
450
Storage Space
3
400
100%
400
400
Kitchen
2
72
50%
40
72
TOTAL USEABLE SQUARE FOOTAGE
31,000
18,000
24,400
TOTAL RENTABLE SQUARE FOOTAGE***
~47,000
21,200
28,700
ANNUAL COST
$99,378 (Actuals, 2021FY)Excludes $368,000 in foregone rent
$635,000****
$860,000****
ANNUAL REVENUE
$92,000 (Actuals, 2021FY)
50% Occupancy: $184,00080% Occupancy: $294,000100% Occupancy: $368,000
50% Occupancy: $230,00080% Occupancy: $368,000100% Occupancy: $460,000
NET COST EXC. MOVING COSTS
$7,400.00
50% Occupancy: $450,00080% Occupancy: $340,000100% Occupancy: $267,000
50% Occupancy: $630,00080% Occupancy: $492,000100% Occupancy: $400,000
There are no rows in this table
** Represents the multifaith and wellness room
***Note the following regarding square footage terminology:
The number used to convert the useable SF to rentable SF is called a load factor and is typically 15%, which is the factor used in the above calculation.
Rental Cost Estimate
****The median rental rate for commercial property in Markham for a space approximately 20-30,000 sq ft in the Markham region is $30/sqft/year based on statistics from MLS.
New Site Requirements
Must Haves
Nice to Haves
Candidate Sites
Maps of Candidate Sites
Seneca College - Markham Campus
Location:
Total Surface Area:
~17,700 sqft
Floor Plans:
Town of Markham Building
Location:
Total Surface Area:
~20,000 sqft
Floor Plans:
MARKHAM.pdf
534 kB
Site Scoring
All scores are on a scale of 1-3:
For measurable metrics such as size and cost, those numbers are proportionately scaled relative to one another such that they fit the 1-3 scale.SizeCleanlinessAtriumCommunityAuditoriumParkingFacilities ManagerSecurityCostSeneca College13123332?Town of Markham32221222?Weight21.51111212
HCI Lab Relocation Considerations
Overview of all Lab Equipment
Notes:
Power Consumption:
Existing Equipment:
Total Existing Consumption: 66.3 kW
Project Consumption (15% safety margin): 76 kW
HVAC Requirements
Long Term Vision
Matt to complete
Want to print your doc?
This is not the way.
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.