Digital Disruption Challenges Commercial Real EstateAre you ready?

How to accelerate economic development

Antony LoriusVice President, Deloitte Real Estate

February 12, 2015

Workplace • Employees work anywhere,

anytime • Changing the space means

more connected place • Workplace as a business

enabler to collaborate and drive productivity

How can we take advantage of these trends and drive economic development for the Province and our communities?

Industrial• North America increasingly

competitive • Not everything is moving

offshore• High tech and advanced

manufacturing poised for a rebound

Retail • Consumers can shop

anywhere, anytime• Store networks at the beginning

of a major shit• Empowered consumer driving

new business models

The Big Picture for Economic Development More change than any time since the industrial revolution

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 48

Manufacturing as a Driver of Growth The Platform has Shifted

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 49

Global and Canadian FDI Trends Ontario continues to be an attractive location

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 50

“They say that time changes things but you actually have to change them yourself.”

Andy Warhol

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 51

“There is a future…it’s why we’re here. Making an investment in skill, at scale. Creating a community that will thrive through excellence of craft

and pride of work…Because we believe in the beauty of industry.”

http://www.shinola.com/our-story#shinola=_FC0XnEm24t

Why open a watch factory in Detroit?

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 52

v

Value Proposition

Tracking and Securing Investment

• Target the right markets• Build awareness and visibility • Exploit comparative advantages • “Show them the love…”

Innovation Infrastructure

Investment Readiness

• Embed a culture of innovation • Improve information and communications • Expand higher education and technical training • Integrate immigrant entrepreneurs

• Ensure a ready land and real estate supply • Make incentives known • Take a proactive and integrated approach

• Community partnerships • Outreach priorities• Accountability and performance indicators

Capitalizing on the Opportunity A proactive and integrated ‘Go To Market’ strategy

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 53

Source : Statistics Canada, International Trade Division, April 2014

“It is really dangerous not to export, because you depend on only one market and one economy” Robert Bouchard, President, Rotobec

Here are some things to consider: • Only 3.6% Canadian companies export• Between 2000-2012, Global Exports increased at an average annual rate of 9.1%;

Canadian Exports only increased by 4.2% over the same time period• Canadian Export Intensity dropped from 46% in 2000 to 30% in 2012• Canada only exports 12% of its total output to the ‘high growth emerging markets’

of the world• Exporters achieve 3X the returns on non-exporters when they go public.• Exporters have 30% higher workforce productivity than non-exporters, among

Canadian manufacturers.

The export opportunityAn instant supply chain growth strategy

© Deloitte LLP and affiliated entities. | Digital disruption challenges commercial real estate 54