Major Office Market Growth Continues in Downtown Toronto
The fast pace of office development activity in downtown Toronto shows no signs of slowing down. This is by far the largest downtown office market in Canada. Newmark Knight Frank Devencore tracks 409 Class A, B and C buildings representing a total inventory of approximately 73.5 million square feet. Remarkably, almost 9 million square feet of new office space has been delivered to the downtown area over the past decade. An additional 4.9 million square feet is currently under construction, and there are a number of substantial projects in the pre-leasing and planning stages. Even with this influx of new space, vacancy rates for all office classes have been steadily declining, falling from 6.7% to 6.3% over the past twelve months. Tenants in the financial services, high tech and media entertainment industries are generating much of the demand. Average gross rent in the downtown area is $40.72/sf, up from $37.68/sf a year ago.
- Vacancy rate for all office classes in downtown Toronto ended at 2Q16 at 6.3%, down from 6.7% a year ago
- Brick and beam spaces in high demand and short supply
- Approximately 5.9 million square feet of office space currently under construction in the GTA
NKF Devencore - Toronto Downtown Fall 2016 Office Market