Facilities SIG - Impact of the New Builds on the Toronto Downtown Class A Office Market
Description
Impact of the New Builds on the Toronto Downtown Class A Office Market - 2009 to 2012 Forecast
3.1 million of LEED designated office space is being delivered to the Downtown office market in 4th quarter 2009. The Downtown Class A office vacancy rate is currently 3.7%. The vacancy rate is expected to climb to 15% in 2009, and peak at 20% in 2011 largely as a result of ten (10) major tenants vacating almost 2 million square feet in 8 existing Downtown Class A buildings. With the added supply coupled with the economic downturn, tenants can expect to see a dramatic change from a landlord's market to a tenant's market beginning this year.
You will be interested in knowing the impact of the new buildings on Downtown business space, particularly as the shift from a landlord's to a tenant's market may affect your firm's premises alternatives at lease expiration, and in your business and real estate planning process.
John O'Toole, is the Executive Vice President of CB Richard Ellis, John is the manager of CBRE's office leasing practice, and has over 30 years experience in Downtown commercial real estate. John is frequently quoted by the media and is asked to speak at major industry events on local and national office market forecasts and trends.