by Ephraim Vecina 31 May 2017 | Mortgage Brokernews
A new study by Canada’s largest corporate real estate advisor and brokerage uncovered that tenant wars for fresh office space in Toronto are showing no signs of abating, a trend that the supply-scarce GTA office market needs to brace itself for.
“Most of the space delivered to the market over the past few years has been absorbed and the three new office developments that will be delivered in 2017 - the 450,000-square-foot Globe and Mail Centre, the 900,000-square-foot EY Tower and the 800,000-square-foot One York Street - have already been over 95% pre-leased,” according to Newmark Knight Frank’s latest market report.
The vacancy rate across all office types in downtown Toronto remained relatively static at 6.5 per cent by the end of Q1 2017, with average gross rent now at $42.95 per square foot (up from $40.87 the same time last year).
“With the next wave of development set to take shape in 2020, a landlord’s market will likely prevail for many space categories over the next few years,” Newmark Knight Frank Devencore president and broker of record Allan Schaffer stated.