Local tech firm Bonfire expanding into last large area of Tannery
Old buildings desired but in short supply
KITCHENER — Corry Flatt steps out of the elevator into a beautiful, open office on the top floor of the Tannery building.
He plans to fill it with new employees during the coming year.
Flatt is the founder and chief executive officer of Bonfire Interactive Ltd., a fast-growing tech firm that developed a software platform that helps public-sector agencies get better prices when buying goods and services.
“I think we almost tripled in size in the last year,” said Flatt. “And we plan to double in size again during the next year.”
After filling 14,000 square feet of space on the fourth floor of the Tannery with 87 employees, Bonfire expanded into the additional 8,000 square feet above it.
“It is a cool spot,” said Flatt of the brick-and-beam office.
Since it was founded in March 2013, Bonfire has steadily expanded as hospitals, municipalities, school boards and other publicsector institutions realized savings by using the software platform when buying goods and services. The company has gone a novel route to hire talent, using the aid of a nonprofit called Talent Beyond Boundaries to hire a refugee from Syria.
He starts work at Bonfire in January.
On Thursday, representatives of the United Nations High Commissioner for Refugees who were visiting Waterloo Region stopped by for a tour of the company.
After Bonfire was acquired by publicly traded company GTY Technology Holdings for US$108 million in late summer, it was merged with five other firms that offer a suite of services for governments and companies, including procurement, billing, budgeting, payments and grants management.
Bonfire and the other merged companies will continue to operate as distinct business units.
After that deal, Flatt knew Bonfire would need more space. It expanded into space vacated by e-learning company D2L, which has quietly downsized in recent months.
In the never-ending scramble for talent, a bright, open office in a former leather tannery can be a competitive advantage.
“It matters, right,” said Flatt. “I personally feel I do better work when I enjoy the space I am in.”
For years now, startups and fast-growing tech companies have renovated many old buildings in and around Kitchener core for offices. There is now a shortage of authentic brick-and-beam space, said Will Hunter, a senior sales associate with commercial real estate firm CBRE, which brokered the lease extension for Bonfire.
“There is actually a lack of supply of really interesting spaces, and that has happened in the last six months,” he said.
“The availability of brick-and-beam space is almost down to zero in the core.”
The former American Hotel at Queen and King streets is currently being renovated; Vidyard plans to expand into that space. The video analytics firm currently is in part of the former Goudies Department Store across the street.
Alert Labs moved into the former Schlichter’s Garage at 132 Queen St. S., and two other tech firms are currently jockeying for space in there. The former legion building on Ontario Street will also be redeveloped.
“Companies are seeing what is being absorbed and they are trying to find that last bit of space before it is gone,” said Hunter. “Even the deals we have worked on in the past 12 to 18 months, they are going to get harder and harder to find.”
When the Tannery building was redeveloped it contained about 300,000 square feet of space. Today, there are only two small offices available, each with 2,500 square feet of space.
Hunter is not surprised. CBRE released a report that ranked Waterloo Region as Canada’s fastest-growing tech market. Between 2011 and 2016 the region’s tech sector grew by 65.6 per cent, adding 8,400 jobs.
Tech companies will drive demand for what Hunter calls “new age brick and beam,” or a new office building that is built to look and feel like an old factory that was redeveloped for techies.
I personally feel I do better work when I enjoy the space I am in. CORRY FLATT CEO, Bonfire