Press Releases

Newmark Knight Frank Devencore Opens New Office in GTA West

solutions@devencorenkf.com () — Thu, 03 May 2012 12:00:00 GMT

Newmark Knight Frank Devencore, Canada's largest corporate real estate advisor and brokerage exclusively representing office and industrial space users, announced today that it has opened a new office in the western part of the Greater Toronto Area (GTA). The new office, situated at 1 Eva Road, is Newmark Knight Frank Devencore's second location in Toronto; the existing downtown headquarters are located at 130 Adelaide Street West. Newmark Knight Frank Devencore has been active in the Toronto real estate market since 1976.

The new GTA West office will be officially launched at an open house on May 3^rdfrom 4-6 pm.

"We are delighted to be establishing this new GTA West office," said Rob Renaud, Senior Vice President and Managing Principal / Broker at Devencore Realties Corporation Canada Limited, Brokerage. "The market for both office and industrial real estate is in growth mode here and there is extraordinary potential for extending the services we offer to our clients. Over the last few years we have been privileged to work with some of the preeminent corporations located in this part of the city, including Golder Associates, Livingston, Investment Planning Counsel and Just Energy, and we have established a track record here. We have also been very involved with most of the larger developers in the region. Finally, the increasing demand for our services from existing and potential clients in the GTA West has persuaded us that we can best serve their needs by establishing a physical presence here."

Mr. Renaud, who will be leading the GTA West office, explained how the requirements of both office and industrial space users are becoming increasingly sophisticated, and Newmark Knight Frank Devencore has the expertise to provide a wide range of advisory services, including strategic planning and needs analysis, site selection, and negotiation of optimal real estate solutions. The firm is also able to fully leverage the international real estate expertise of Newmark Knight Frank, which is one of the world's preeminent real estate companies.

"Development and redevelopment activities are energizing the GTA West real estate scene," Mr. Renaud added. "There is a broad spectrum of property types here, as well commercial areas with extraordinary potential, and we are very excited about partnering with our clients in this vibrant market."

"Newmark Knight Frank Devencore is putting together a team of some of the most skilled and experienced real estate advisors in Toronto for this new office," said Allan Schaffer, President / Broker of Record at Devencore Realties Corporation Canada Limited, Brokerage. "This highly motivated team is dedicated to helping corporate and industrial space users navigate the complex space evaluation, acquisition and disposition processes. With two offices in the GTA, we can bring all of our corporate and industrial clients the most comprehensive and timely service offering available."

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com

About Newmark Knight Frank

Newmark Knight Frank is one of the largest real estate service firms in the world. Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank together operate from more than 240 offices in established and emerging property markets on five continents. With a combined staff of more than 7,000 and revenues last year exceeding $993 million, this major force in real estate is meeting the local and global needs of tenants, owners, investors and developers worldwide. For further information, visit www.newmarkkf.com.

Newmark Knight Frank is a part of BGC Partners, Inc. (NASDAQ:BGCP), a leading global brokerage company primarily servicing the wholesale financial markets. For further information, visit www.bgcpartners.com

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For further information contact:

Rob Renaud, CCIM, SIOR, Broker
Senior Vice President and Managing Principal
Direct: 416-366-0366 x 241
Newmark Knight Frank Devencore
rrenaud@devencorenkf.com

Devencore Realties Corporation
Canada Limited, Brokerage
1 Eva Road, Suite 409
Toronto, Ontario
M9C 4Z5

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com

Devencore Ltd.
Real Estate Agency
800 René-Lévesque Boulevard West,
Suite 900
Montréal, Québec
H3B 1X9

Newmark Knight Frank Devencore Issues Winter 2012 Montreal Industrial Real Estate Market Report

solutions@devencorenkf.com () — Sun, 01 Apr 2012 12:00:00 GMT

MONTRÉAL - In its Industrial Real Estate Market Report published today, Newmark Knight Frank Devencore reported that the industrial real estate market in the Greater Montreal area (GMA) continued to recover through most of 2011. In the first half of the year, there was a significant amount of space absorption, and while the rate of absorption slowed in the last two quarters of 2011, overall availability rates still fell into the 5.5% range, down from 8.0% at the end of 2010.

"Because much of the activity in Montreal's industrial sector is tied closely to the import and export markets--which in turn are dependent on the economic health of our largest trading partner to the south--businesses in the industrial sector are more cautious when it comes to relocation or expansion than their counterparts in the office sector," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore.

Vacancy rates vary significantly in Montreal's main industrial submarkets, as does the quality of the space that is available. In the city's largest submarket, the West Island, for example, the overall vacancy rate in Q4 2011 stood at approximately 6.0%, while in Montreal East the combined vacancy rate is approximately 4.6%. Rates are considerably higher on the South Shore--at 11.8% at the end of 2011--and in Laval, where overall rates exceed 13%.

Across the rest of the country, availability rates also declined through 2011, dipping well below 8%. Activity was strong in the oil and gas sector, and western cities, including Calgary, Winnipeg and Edmonton continued to register the lowest industrial vacancy rates in the country. The warehousing, distribution and manufacturing sectors in Toronto and Montreal also performed reasonably well.

"With the recent unexpected fluctuations in unemployment rates, a slower recovery in the country's manufacturing sector and sluggish growth in the U.S., we anticipate that demand for industrial space will be relatively flat through at least the first quarter of 2012," Mr. Laurin said. "There is a very good supply of space in Montreal larger than 25,000 square feet, so tenants who require this amount of space may find that landlords are willing to exercise some flexibility. In general, while global economic conditions remain uncertain, cautious tenants and their real estate advisors may increasingly be seeking to negotiate shorter lease terms."

About Newmark Knight Frank Devencore

About Newmark Knight Frank

For further information, contact:

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com
Devencore Ltd., Real Estate Agency

Newmark Knight Frank Devencore Reports on Greater Toronto Office Market

solutions@devencorenkf.com () — Thu, 01 Dec 2011 12:00:00 GMT

TORONTO - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that through the first three quarters of 2011, the corporate real estate market in the Greater Toronto Area continued to be one of the most active in the country. Office space continues to be absorbed at a healthy pace and combined vacancy rates in the Downtown District are in the 5.3% range. Vacancy rates in the corporate corridors outside of Toronto's Downtown District have been higher than those downtown over the past few years, but space absorption is accelerating in some of these areas as well.

"Over 3 million square feet of the state-of the-art Class "A" space was delivered to the market over the past few years, and virtually all of it has been leased," said Allan Schaffer, President/Broker of Record of Devencore Realties Corporation Canada Limited, Brokerage. "Despite an uncertain economy, the continuing demand for premiere space has generated plans for further developments. Additionally, an emerging trend that we highlighted in our market study a year ago-specifically, the way in which urban condo development is reenergizing the downtown Toronto office market-has taken firmer root. As more young professionals move downtown, corporations who wish to attract and retain this skilled workforce are recognizing the competitive advantage they might gain by locating or consolidating their organizations downtown as well. This trend is helping to sustain the demand for space in the downtown office market."

While major new developments projects are taking shape, it will still be at least three years before they are completed so the market will remain tight. "Tenants who wish to expand and who currently reside in buildings with little vacant space may find they will have to pay considerably more for the expansion space, and leasing negotiations may be more challenging over the short term," Schaffer said. "However, there is ample available space in some of the Class "A" buildings whose tenants moved into the new towers."

Across the rest of Canada, corporate real estate markets have remained relatively healthy in 2011. The overall vacancy rate in Class "A" and Class "B" office buildings in Canada's major cities dropped from 6.8% to 5.4% over the first half of the year, and total vacant space fell from 14 million square feet to just over 11 million square feet.

About Newmark Knight Frank Devencore

About Newmark Knight Frank

For further information contact:

Allan Schaffer
President / Broker of Record
416-366-0366, ext. 231
Newmark Knight Frank Devencore
aschaffer@devencorenkf.com

Devencore Realties Corporation
Canada Limited, Brokerage
130 Adelaide Street West, Suite 2929
Toronto, Ontario M5H 3P5

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com

Devencore Ltd.
Real Estate Agency
800 René-Lévesque Boulevard West,
Suite 900
Montréal, Québec H3B 1X9

NKF Devencore Reports on Active Vancouver Office Market

solutions@devencorenkf.com () — Thu, 17 Nov 2011 12:00:00 GMT

Vancouver - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that vacancy rates in downtown Vancouver are now among the lowest in Canada. Combined Class "A" and Class "B" vacancy rates stood at 3.5% in mid-2011, down from 4.2% at the end of 2010, representing the positive absorption of just over 150,000 square feet. The Class "A" submarket is especially tight, with an overall vacancy rate of only 2.9%. Just over 375,000 square feet of Class "A" space is available for lease or sublet, most of this in smaller blocks.

"Downtown vacancy rates are now returning to the record low levels we saw prior to the financial crisis in 2008-09," said Jon Bishop, Vice-President & Managing Principal of Devencore Company Limited. "With the tightness of supply, we expect that average asking rental rates, already among the highest in the country, will soon eclipse those achieved during the market peak of early 2008."

Mr. Bishop added that the downtown office market will be landlord-favoured market over the short term, but that the considerable developer activity currently taking place will soon begin to shift the dynamics of the downtown market.

"No fewer than three major LEED office tower projects have been confirmed," Mr. Bishop said. "Collectively, these developments will bring nearly 1.2 million square feet of prestige space to the market. The promise of this new premium view space in the downtown area may soon begin to have an influence on the real estate decisions of some larger tenants."

Over the short term tenant opportunities will continue to be more plentiful in Metro Vancouver's suburban areas. Leasing activity in these submarkets has also picked up in recent months, with local businesses driving most of the space absorption that is taking place.

About Newmark Knight Frank Devencore

About Newmark Knight Frank

For further information, contact:

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com
Devencore Ltd.

Jon T. Bishop
Vice-President & Managing Principal
Devencore Company Ltd.
604-681-3334, ext. 2225
Newmark Knight Frank Devencore
jbishop@devencorenkf.com

Newmark Knight Frank Devencore Reports on Greater Ottawa Office Market

solutions@devencorenkf.com () — Thu, 27 Oct 2011 12:00:00 GMT

OTTAWA - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that the office vacancy rate in downtown Ottawa should rise considerably over the next 2-3 years, opening up a range of opportunities for tenants that have not existed for most of the past decade. The possibility of new office towers being built for the private sector, coupled with the intention of Public Works and Government Services Canada (PWGSC) to vacate a substantial amount of its space downtown, is driving this shift in the market dynamic.

Through the first half of 2011, vacancy rates in Class "A" buildings stood at 4.0%, and approximately 395,000 square feet was available for lease or sublet. Class "B" vacancy rates registered a very low 1.8%, and less than 150,000 square feet was available.

"We anticipate that vacancy rates in downtown Ottawa could double--to 6% or higher--over the next couple of years," said Don Marks, Director, Advisory and Corporate Services for Devencore Real Estate Services Ltd. "As a result, rental rates should soften and tenants will be presented with a greater range of opportunities. Any increase in vacancy rates, however, may be tempered by the degree to which federal buildings are taken off the market for retrofitting."

Combined Class "A" and Class "B" vacancy rates in Kanata held at 15% mid-year, down slightly from 16.3% at the end of 2010. These vacancy rates may soon fall, however, as two major tenants of the Nortel Campus--Ericsson and Avaya--recently announced that they would be moving their operations to Kanata, and collectively absorbing approximately 300,000 square feet of space.

"The accelerated space absorption in Kanata being driven by the Nortel exodus may be a temporary and limited phenomenon," Mr. Marks cautioned. "Nevertheless, over the short to medium term, tenants seeking leasing opportunities here will have to research emerging market trends carefully."

About Newmark Knight Frank Devencore

About Newmark Knight Frank

Newmark Knight Frank is a part of BGC Partners, a leading global brokerage company primarily servicing the wholesale financial markets. For further information, visit www.bgcpartners.com.

For further information, please contact:

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com
Devencore Ltd.

Newmark Knight Frank Devencore Reports on Downtown Montreal Office Market

solutions@devencorenkf.com () — Thu, 20 Oct 2011 12:00:00 GMT

Market Continues to Show Strength; Major New Developments Proposed

MONTRÉAL - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that vacancy rates in downtown Montreal's office buildings have fallen from 8.0% to 6.1% over the past 12 months as the market continues to recover from the 2008-2009 financial crisis. As a result of decreasing vacancies, asking rental rates could begin to edge upwards in the months ahead, and some landlords may be less inclined to offer the range of leasing inducements that were common at the end of 2009 and early in 2010.

"Over the past twelve months, nearly 900,000 square feet of office space has been absorbed in downtown Montreal and we are gradually returning to the market conditions that existed prior to the recession, when downtown occupancy rates were at the 95% level," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore. "In fact, market conditions are such that we are beginning to see a variety of pre-development activity in the office market, something that hasn't taken place on the island of Montreal since 2004, when Phase 2 of E-Commerce Place was delivered."

At the present time, at least one office/condo development is underway, and Cadillac Fairview continues to seek anchor tenants for a proposed 500,000 square-foot office tower in the heart of downtown Montreal. Further, there are two large development properties being marketed around Place Victoria in the city's Quartier International. Rio Tinto Alcan has also made it known that it may be relocating its Montreal headquarters, a move that could change the complexion of the downtown district's office market significantly.

"With almost daily swings in the various financial markets and national economies around the globe, anticipating real estate trends six months in the future is a risky proposition," Mr. Laurin added. "However, in the Montreal office market, business confidence remains strong and tenants with leases coming up for renewal are wisely examining their options at least months in advance of lease termination."

About Newmark Knight Frank Devencore

About Newmark Knight Frank

Newmark Knight Frank is a part of BGC Partners, a leading global brokerage company primarily servicing the wholesale financial markets. For further information, visit www.bgcpartners.com.

For further information, contact:

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com
Devencore Ltd., Real Estate Agency

Newmark Knight Frank Devencore Secures New Home for High Fidelity HDTV

solutions@devencorenkf.com () — Thu, 15 Sep 2011 12:00:00 GMT

Newmark Knight Frank Devencore, Canada's largest corporate real estate advisor and brokerage exclusively representing corporate office and industrial space users, announced today that it has located and secured a new corporate headquarters, broadcast and production centre for High Fidelity HDTV. The building, located at 130 Merton Street in Toronto, is currently being upgraded by High Fidelity HDTV to a state-of-the-art facility housing, amongst other things, High Fidelity HDTV's leading-edge Master Control operations for its premium, high-definition television services: Oasis HD^TM, eqhd^TM, Treasure HD^TM and radX^TM.

"We are very pleased to have been able to secure this new facility for High Fidelity HDTV," said Mark Petznick, Vice President & Sales Representative at Newmark Knight Frank Devencore in Toronto. "This is the third leasing transaction we've assisted with over the past six years, as High Fidelity HDTV has enjoyed very rapid growth. Locating and negotiating a new lease for a 39,000-square-foot space was an especially interesting challenge, as High Fidelity HDTV had very specific requirements related to their unique needs as a high-definition broadcaster, media content producer and facilities services supplier. Our intimate knowledge of the market allowed us to find a building with the right floor plate, technological capabilities, backup systems and visibility that could address these needs."

This transaction will effectively reduce the vacancy rate in midtown Toronto's popular Yonge and Eglinton submarket from 6.7% to 5.8% - the lowest it has been over the last 2 years. Additionally, the absorption of nearly 40,000 square feet in this node nearly equals the best quarterly absorption number achieved over the last 2 years.

"We were delighted once again to partner with Newmark Knight Frank Devencore for the purpose of securing our new home," said David T. Patterson, Partner & General Counsel of High Fidelity HDTV. "This was a critically important initiative to secure the continued growth and evolution of our business, and Newmark Knight Frank Devencore certainly worked effectively and efficiently to serve us."

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across Canada, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution.

Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank operate from over 220 offices in established and emerging property markets on six continents. With a combined staff of 7,300 and revenues last year exceeding $861 million, this major force in real estate is meeting the local and global needs of owners, tenants, investors and developers worldwide. For more information about Newmark Knight Frank Devencore, please visit: www.devencorenkf.com

About High Fidelity HDTV Inc.

High Fidelity HDTV is an independent Canadian high-definition broadcaster, media content producer and facilities services supplier. High Fidelity HDTV's television services provide smart and engaging programming to curious audiences hungry for premium programming. High Fidelity HDTV broadcasts four highly popular HD channels: Oasis HD^TM , Treasure HD^TM, eqhd^TM and radX^TM. For more information about High Fidelity HDTV, please visit: www.hifihdtv.ca.

For further information about
Newmark Knight Frank Devencore, please contact:

Allan Schaffer
President / Broker of Record

Devencore Realties Corporation
Canada Limited, Brokerage

Newmark Knight Frank Devencore
130 Adelaide Street West
Suite 2929
Toronto, Ontario M5H 3P5

aschaffer@devencorenkf.com

416-366-0366, ext. 231

Sylvie Bachand
Director, Marketing and Communications

Devencore Ltd.
Real Estate Agency

Newmark Knight Frank Devencore
800 René-Lévesque Boulevard West
Suite 900
Montréal, Québec H3B 1X9

sbachand@devencorenkf.com

514-392-1330, ext. 225

Greater Calgary Area - NKF Devencore Establishes Partnership with CITI Commercial in Calgary

solutions@devencorenkf.com () — Wed, 01 Jun 2011 12:00:00 GMT

Newmark Knight Frank Devencore, Canada's largest corporate real estate advisor and brokerage representing corporate, industrial and retail space users, announced today that it has entered into a partnership with CITI Commercial in Calgary, whereby CITI Commercial will join Newmark Knight Frank Devencore, effective immediately. The partnership strengthens Newmark Knight Frank Devencore's presence in the Calgary and Alberta commercial real estate markets, and provides CITI Commercial with tremendous growth opportunities as a part of Newmark Knight Frank Devencore's extensive global network.

"We are very pleased to have entered into this partnership," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore. "They are an important player and have been very active in the Alberta market; they have also spearheaded major real estate negotiations and transactions in the energy, financial, technology and service sectors. Moreover, the company's president, Agron Miloti, has been in the business for 26 years and has built the firm from the ground up. We are extremely impressed by his accomplishments, his vision, his determination and by the team he has developed. Together, we have a real opportunity to develop our service offering and client base across the country and indeed globally. Our goal is to become one of the top service providers in the world. We look forward to a very strong relationship where our clients will be the main beneficiaries."

Established in 1999, Calgary-based CITI Commercial was an independent real estate company providing a complete range of commercial real estate services. It has extensive operations in the areas of leasing (office, retail, & industrial) and investment sales.

"We are delighted to be joining Newmark Knight Frank Devencore, which has built an unmatched reputation in Canada and around the world for providing best-in-class real estate services," said Agron Miloti. "We share a strong commitment to tenant representation, and our objective is to accelerate our growth by leveraging Newmark Knight Frank Devencore's leading market presence in all of the world's major metropolitan centres."

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across Canada, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution.

Real Estate National Portrait - Vancouver, Spring/Summer 2011

solutions@devencorenkf.com () — Tue, 31 May 2011 12:00:00 GMT

VANCOUVER - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that the overall vacancy rate in Class "A" buildings in downtown Vancouver has dropped to 3.3%, and almost all of this available space is found in smaller blocks.

"The Class "A" market will remain a landlord's market for the foreseeable future, with top-quality office spaces commanding top dollar," said Jon Bishop, Vice-President and General Manager of Devencore Company Limited. "With vacancy rates in the downtown core returning to pre-recession levels, we project that rental rates will eclipse those achieved during market peak of 2008. For these conditions to change, new office supply will have to be built. And while there are a number of interesting projects in the planning stages, and two or three likely to commence this year, delivery is still a few years off."

With the market tightening in downtown Vancouver, Newmark Knight Frank Devencore expects to see more tenants considering their options in the Burnaby, Surrey and Richmond submarkets, where there is a good deal more available space and where occupancy costs continue to be significantly lower.

Further, Greater Victoria should also see more activity, as vacancy levels are now tracking at 9%, which is higher than they've been in the last 10 years. As recently as 2008, vacancies were in the 2% - 3% range. "Over the past few months tenants have been able to capitalize on this greatly altered market dynamic, and strategic negotiations have allowed tenants to achieve improved leasing inducements and more favourable financial terms," Mr. Bishop said.

Across the rest of the country, vacancy rates have continued to decline as the economy has strengthened. The overall vacancy rate in Class "A" and Class "B" buildings in Canada's major cities fell from 7.1% to 6.8% over the last six months of 2010, even as the total inventory of Class "A'' and Class "B" office space increased. Should the economic recovery continue on its current path, Newmark Knight Frank Devencore expects that office vacancy rates should continue to decline across most of the country in the months ahead, and rental rates in some cities will likely begin to rise.

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest independent real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution.

To learn more about our capabilities, please visit www.devencorenkf.com

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For further information, contact:

Sylvie Bachand
Director, Marketing and Communications
Devencore Ltd.,
Real Estate Agency
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com

Jon T. Bishop
Vice-President & General Manager
Devencore Company Ltd.
604-681-3334, ext. 2225
Newmark Knight Frank Devencore
jbishop@devencorenkf.com

Real Estate National Portrait - Toronto, Spring/Summer 2011

solutions@devencorenkf.com () — Thu, 26 May 2011 12:00:00 GMT

TORONTO - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that office market in Toronto's Downtown District remained very robust through the last half of 2010 and the first quarter of 2011. Tenant interest in the new office towers that were delivered to the market over the past couple of years speaks to the pent-up demand for top-tier space. It also demonstrates the capacity of many of Toronto's major businesses to absorb premium rental rates.

"The substantial demand for the new breed of office space has led to late-stage discussions for at least three new developments," said Allan Schaffer, President/Broker of Record of Devencore Realties Corporation Canada Limited, Brokerage. "For example, Oxford is currently negotiating with a major financial tenant to launch a 700,000-900,000-square-foot building near WaterPark Place; Cadillac Fairview is marketing an 800,000-square-foot mixed-use project at 16 York Street; and in the Downtown West area Allied Canadian is actively seeking lead tenants focused on the new media industry for a proposed 240,000-square-foot tower. However, these projects are at least a couple of years from completion, so any new office inventory will be limited over the short term."

Indeed, the Market Study emphasizes that there are potentially interesting deals to be made in the older Class "A" space that is being freed up by tenants relocating to the new towers.

"At Commerce Court West for example, nearly 500,000 square feet is available," Schaffer said. "Similarly, the Royal Trust Tower at 77 King Street West has 350,000 square feet available, a 36% availability rate. It has been a long while since premiere buildings like these have had this amount of leasable space on the market."

In the business corridors outside Toronto's downtown core, vacancy rates are considerably higher, which translates into greater negotiating leverage for tenants. However, opportunities can vary significantly in the various submarkets. Therefore, tenants should work closely with their advisors to identify the most advantageous leasing options.

About Newmark Knight Frank Devencore

For further information, visit www.newmarkkf.com.

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For further information contact:

Allan Schaffer
President / Broker of Record
416-366-0366, ext. 231
Newmark Knight Frank Devencore
aschaffer@devencorenkf.com

Devencore Realties Corporation
Canada Limited, Brokerage
130 Adelaide Street West, Suite 2929
Toronto, Ontario M5H 3P5

Sylvie Bachand
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
sbachand@devencorenkf.com

Devencore Ltd.
Real Estate Agency
800 René-Lévesque Boulevard West,
Suite 900
Montréal, Québec H3B 1X9