FROM TEXTILES TO TECH
Toronto’s historic Garment District attracts technology startups thanks to convenient downtown location and ‘funky’ feel of its old factory buildings,
In a graceful Art Deco brick building at 119 Spadina Ave., once populated by seamstresses at sewing machines, software engineers sit silently at computers.
The sound of the office door opening with a crash and heels echoing on old hardwood floors does not disturb them. Slouched in chairs and deep in thought, they are writing programs to translate hundreds of thousands of lines of retail data into information suppliers can use to keep store shelves stocked.
Askuity chief executive officer Eric Green is a serial founder of startups. When he was looking for space for his latest business, the old factory buildings in the Garment District held the most appeal.
“It’s a lot more funky. It fits well with the personalities of people who like to work in tech startups.”
The Balfour Building allows well-mannered dogs. The ceilings soar, the floors are original, wide-plank wood laid down nearly a century ago; sun streams in and bounces off white walls. It has a rooftop terrace with a stunning view.
The building is easy to reach by subway and streetcar and perhaps most importantly, by bike, for those employees who live and work downtown.
“A lot of the young people we’re hiring don’t even have licences,” says Green, 45, who does have a licence.
In a small, ironic twist of fate, the old-brick-and-beam buildings in and near Toronto’s historic Garment District and adjacent Fashion District are once again serving the retail industry, although this time they’re delivering more tech than textiles.
The list of tech firms in the Garment District area includes offices for Shopify, at 80 Spadina Ave. Shopify became a publicly-traded company this week with a $131-million (U.S.) initial public offering.
The Ottawa-based company has changed retail by offering individuals and small businesses a way to do business cheaply online, giving them the kind of web presence and technical support that would once have been out-of-reach.
Other IT firms in the district include Mercatus Technologies, which specializes in grocery e-commerce products, such as mobile coupons, click-and-collect and loyalty programs, across multiple digital channels. Its clients include Price Chopper.
“I love it, the space is amazing and we love the architecture; it’s modern but mixed in with what it used to be and the area is good too — lots of great food,” said Esha Khan, who has been working with her colleagues from Mercatus at 545 King St. W. for about a year. “We all really like it here.”
Startup retailer Lazy Pants, which makes comfort clothing, has offices at196 Spadina Ave., in the heart of the old Garment District. In the adjacent Fashion District, retail disrupter eBay has offices at 522 King St. W., next to Kijiji at 500 King St. W.
“A large number of smart, interesting (technology) companies are making some big bets on retail,” said Sue McGill, head of consumer technology at MaRS, a business incubator that helps entrepreneurs get off the ground.
McGill said large retailers are seeing every point of their supply chain disrupted by young, smart, nimble competitors addressing the same issues they’re facing, but more quickly. The new tech firms are stepping in to help. In fact, tech firms are settling in all along the historic streets, if not always in historic buildings. AisleLabs, located at 326 Adelaide St. W., is focused on creating location-based mobile products for customers, including shopping centres.
The transformation began in 1996, when the city of Toronto, under mayor Barbara Hall, moved to rezone the buildings in the area, which at the time were zoned for light industrial use, said Michael Emory, president and CEO of Allied Properties REIT.
“The zoning restrictions were really anachronistic,” said Emory.
Allied owns, develops and manages offices in 10 Canadian cities, including Toronto, Montreal, Calgary and Vancouver.
Emory said creative businesses like the spaces because they are close to the core, but not in it, making them more affordable than prime office space downtown. They also believe the unique interiors and exteriors help attract, motivate and retain employees.
“You can tell which ones were crafted with that industry in mind,” said Spencer Sutherland, chair of the Queen Street West Business Improvement Association, which represents the adjacent Fashion District.
While most people associate sprawling short buildings with factory work, 100 years ago, textile factories operated out of brick-and-beam buildings a few storeys high. Renovated, the buildings create the kind of spaces that encourage transpar- ence, co-operation and creativity, said Sutherland.
Larry Saltsman’s father was a wholesale retailer in the fashion business, and Saltsman was among the first to realize the potential in the old buildings.
In the 1980s, they were occupied by artisans, graphic designers and people working in the arts. That creative tone still resonates, he said.
“There’s casualness to this building that you don’t find in office towers,” said Saltsman, whose office is located in the Balfour Building, next to Askuity.