2. 2 Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Market Summaries
GTA Market Overview.....................................................................................................3
Downtown................................................................................................................4
Midtown...................................................................................................................5
Central North...........................................................................................................6
Central East............................................................................................................. 7
GTA East..................................................................................................................8
GTA North................................................................................................................9
GTA West............................................................................................................... 10
Glossary............................................................................................................................... 11
Table of Contents
3. 3Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
GTA Market Overview
Market Overview
The Greater Toronto Area (GTA) office market remained
steady in Q3 2015 as the overall vacancy rate declined
slightly to 5.4 percent, while the availability rate decreased
to 10 percent. The office market was stable throughout
the GTA this quarter, as most office submarkets saw their
vacancy rates remain relatively unchanged compared to
the previous quarter. No new office space was added to
the market this quarter, however, this is not a signal that
office construction throughout the GTA is slowing down
as almost 5 million square feet of office space is currently
under construction. In addition, more than 50 office and
mixed-use office buildings are proposed throughout the
region, which could lead to an even greater amount of
future office stock in the market. Of the office space that
is under construction, about 4 million square feet are
Class A buildings or above. With the newly constructed 88
Queens Quay and 120 Bremner Blvd becoming almost fully
occupied throughout 2015, it will be interesting to see how
the market responds to the large amount of new space that
is under construction. With large amounts of pre-leased
new office stock , once delivered, the leasing velocity as
to which the remaining new space is absorbed, should
provide a measurement of the demand for additional new
office space, now in the proposal stages.
Investment Market
According to RealNet data, the Toronto investment market
saw a gradual decrease in activity from Q2 2015 (more
than 60 transactions) and has continued to remain
relatively slow in transaction activity in contrast to Q3
2015 (about 50 transactions). According to Real Capital
Analytics, the total office sale volume in Toronto was the
smallest in the past three years. This is partially due to
the fact that supply of quality assets on the market is low
and large institutional property holders continue to keep
their quality assets. Despite the slowdown within the
central markets in previous quarters, a few notable sales
were completed within the city of Toronto within the
Downtown East and Midtown submarkets. These were
Woodcliffe Corporation selling King James Place to
Northam Realty Advisors for $59.5 million and Evton
Capital Partners selling One St. Clair Avenue West to
Slate Properties Inc. for $33.5 million.
Market Indicators
Relative to prior period
Market Q2
2015
Market Q3
2015
Market Q4
2015* Trend
VACANCY RATE 5.6% 5.4%
NET ABSORPTION 391,852 430,215
AVAILABILITY RATE 10.7% 10.0%
AVERAGE ASKING NET RENT $18.65 $17.93
*Projected
Occupier Demand
The financial services sector is once again leading demand
for office space throughout the GTA and specifically in the
Downtown South, Financial Core, Downtown West and
GTA West. Companies within engineering and technology/
software industries are also looking for space within the
GTA, but almost exclusively throughout the GTA West. The
technology/software industry continues to grow and
expand throughout the GTA office market and will likely
continue to demand office space in the region. Government
services companies/organizations are also increasing their
demand for space, compared to previous quarters. Demand
for all office space seems to be geographically focused
towards the Downtown, GTA North and GTA West markets.
Q3 2015 – 1,432,000 Square Feet
Financial Services
Engineering
Technology/Software
Other (Entertainment, Communications,
Media, Transportation and Retail Trade)
Government Services
Architectural, Engineering and Related Services
Communications/Technology
Security Services
Communications/IT
Banking
Transportation
41%
15%
10%
8%
6%
5%
4%
3%
3%
3% 2%
Historical Performance and Forecast
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
4. 4 Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Downtown
The overall vacancy rate within the Downtown office market
declined slightly this quarter, while leasing activity remained
steady. The Downtown West, East and South vacancy rates
remain low with the supply not meeting the demand. With
the completion of 351 King Street East set to take place in
2016 and the pre-leasing success within this building, the
Downtown East could see greater interest from tenants and
developers looking within the Downtown market, but outside
of the Financial Core.
Trends
>> About 4 million SF of the currently 5 million SF of office space
that is under construction is located within the Downtown office
market.
>> Every building that has been built within the past year in the
Downtown South office submarket have been 100% leased.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE SIZE
(SF)
1.
CI Financial
- 2 Queen Street East
Renewal /
Expansion
73,557
+ 24,226
2.
MacLaren McCann
- 200 Wellington Street West
Headlease 59,000
3.
Liberty International
Underwriters - 181 Bay Street
Renewal 36,668
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 75,928,990 75,294,820
Net Absorption 236,367 224,935
Vacancy Rate 2.6% 2.3%
Availability Rate 7.7% 7.4%
Average Asking Net Rent $29.18 $28.89
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
7. 22 Adelaide Street West AAA 44 1,020,000 Brookfield Financial Real Estate Group Q1 2016 Under Construction
8. 351 King Street East A 17 500,000 Q2 2016 Under Construction
9. 1 York Street A 35 800,000 HOOPP / Menkes Q3 2016 Under Construction
10. 100 Adelaide Street W AAA 40 905,722 Oxford Properties Group Inc. Q2 2017 Under Construction
11. 130 Queens Quay E A 178,300 The Daniels Corporation Q2 2019 Under Construction
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
Northam Realty Advisors
- King James Place
$59,500,000 79,133
5.
Free The Children
- 339 Queen Street East
$14,500,000 43,500
6.
Hullmark
- 474 Wellington Street West
$12,529,923 20,237
TORONTO
Union
Dundas
Bloor / YongeBay
Castlefrank
Wellesley
Queen’s Park
Carlton StCollege St
Dundas St
Queen St
King St
SpadinaAve
UniversityAve
YongeSt
ParliamentSt
Bloor St
Gardiner Expwy
1 5
6
4
2
710
11
3 8
9
Lake Ontario
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
5. 5Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Midtown
The overall vacancy rate in the Midtown market remains
almost unchanged from the previous quarter and sits at
2.7 percent. While the market didn’t see much movement,
numerous leases and renewals took place in the Midtown
market with companies such as the Toronto Transit
Commission and EventMobi. The renewal activity within the
Midtown market outlines the desire for companies to remain
within this market.
Trends
>> Slate Properties purchased One St. Clair Avenue West this
quarter for about $33.5 million.
>> Demand by companies to locate within the Midtown market
continues, as its public transit accessibility and proximity to the
Downtown market continues to make this market attractive to
office-leasing tenants.
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 19,387,861 19,387,861
Net Absorption 65,388 21,328
Vacancy Rate 2.8% 2.7%
Availability Rate 6.8% 6.2%
Average Asking Net Rent $18.48 $19.27
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
6. 135 Yorkville Avenue A 11 50,000 Camrost Felcorp Q3 2016 Planned
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
3.
Slate Properties Inc.
- One St. Clair Avenue West
$33,500,000 84,982
4.
Slate Properties Inc.
- 2323 Yonge Street
$29,000,000 67,389
5.
Fernhill Holdings Limited
- 10 Alcorn Avenue
$9,300,000 67,200
Bloor St
Dundas St
Queen St
Eglinton Ave
LansdowneAve
YongeSt
BayviewAve
DufferinSt
Lawrence Ave
Gardiner Expwy
TORONTO
5
4
2
3
6
7
1
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-20,000
-40,000
-60,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE SIZE
(SF)
1.
EventMobi
- 175 Bloor East
Sublease 19,807
2.
Indeed Canada
- 365 Bloor Street East
Headlease 12,600
3.
The Counselling
Foundation
- 2 St Clair Avenue East
Headlease/
Sublease
10,739
6. 6 Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Central North
Slate Properties purchased 5075 Yonge Street, a $31 million
transaction that is part of the $94 million Evton Capital
Partners - Slate Properties Toronto Office Portfolio 2015,
comprising two more office properties located in Midtown
Toronto. Evton will be selling additional fund properties,
confirming the strong selling activities we are seeing in the
market. Net absorption has seen some improvement due
to some small-size deals in the market, recording a positive
absorption of 37,748 square feet in Q3 2015.
Trends
>> A mix of office buildings and office condos is active in the sale
market, with an average of $510/SF for an office condo this
quarter.
>> The vacancy rate declined to 2.9% this quarter, down from 3.2%
in Q2 2015.
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 12,026,988 11,987,488
Net Absorption (183,571) 37,748
Vacancy Rate 3.3% 2.9%
Availability Rate 6.1% 5.9%
Average Asking Net Rent $17.08 $17.23
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
6. 4800 Yonge Street A 25 393,000 Oxford Properties Group Q4 2016 Planned
7. 4050 Yonge Street A 7 367,000 Build Toronto Inc. Q4 2016 Planned
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Toronto Transit Commission
- 5 Park Home Avenue
Headlease 23,150
2.
Bluecat Networks
- 10 York Mills Road
Sublease 13,000
3.
Recruiting In Motion Inc.
- 2 Sheppard Avenue East
Headlease 6,100
Sheppard Ave
Highway 401
Lawrence Ave
Finch Ave
YongeSt
BayviewAve
KeeleSt
Steeles Ave
Eglinton Ave
BathurstSt
York University
7
TORONTO
VAUGHAN
5
4
Lawrence
Sheppard
Finch
Downsview
Lawrence West
Eglinton West Eglinton
1
2
3
6
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
-100,000
-150,000
-200,000
-250,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
Slate Properties Inc.
- 5075 Yonge Street
$31,000,000 86,529
5.
Intrepid Yonge Group Inc
- 5287 Yonge Street
$2,575,000
7. 7Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
GTA North
Engineering firms are still dominating the GTA North office
market generally and Markham submarket specifically. They
tend to stay and expand within the area, attracting more
tenants of the same industry. With close to 1.5 million square
feet of available office space, equivalent to 10 percent of
availability rate, tenants looking in this market have many and
diverse options. GTA North experienced positive absorption of
86,219 square feet this quarter with SCM Adjusters Canada
and Mattamy Homes contributing to this positive absorption
as they took 61,684 square feet at 175 Commerce Valley
Drive West and 32,000 square feet at 7880 Keele Street,
respectively.
Trends
>> 15 sale transactions were recorded this quarter, including Fiera
Properties’ purchase of Liberty Centre for $111.5 million.
>> The vacancy rate remained the same as last quarter, standing
at 8.9%.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
SCM Adjusters Canada - 175
Commerce Valley Drive West
Headlease 61,684
2.
Mattamy Homes
- 7880 Keele Street
Headlease 32,000
3.
Longview Solutions
Canada ULC - 65 Allstate
Parkway
Headlease 24,486
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 14,624,545 14,581,553
Net Absorption (102,171) 86,219
Vacancy Rate 9.5% 8.9%
Availability Rate 13.7% 10.0%
Average Asking Net Rent $15.99 $15.99
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
7. Millway Rd. at Apple Mill Rd A 14 350,000 Calloway REIT, SmartCentres Q1 2016 Planned
8. 7777 Weston Road A 8 136,000 Liberty Developments Q3 2016 Planned
9. 2833 16th Avenue A 60 9,000,000 Cadillac Fairview Planned
10. 1555 16th Avenue 7 120,650 Investors Group Planned
Newmarket
Richmond
Hill
King City
Highway 407
Aurora RdWellington St
Highway404
YongeSt
Stouffville Rd
WardenAve
Highway400
Steeles Ave
King Rd
Highway27
Davis Dr
9
VAUGHAN
RICHMOND HILL
AURORA
3
28
7
10
5
6
4
1
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-100,000
-150,000
-50,000
0
50,000
100,000
150,000
200,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
Financial Debt Recovery
Limited - 100, 120 and 160
Commerce Valley Drive East
$10,500,000 71,150
5.
Metrus Properties -
33 Commerce Valley Drive East
$10,000,000 125,000
6. Zzen Group - 7725 Jane Street $5,250,000 22,327
8. 8 Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Central East
The construction at Eglinton Crosstown LRT is progressing in
the Central East market and it is spurring new developments
along its route and in the vicinity. One of the proposed major
developments is the Celestica 24-hectare lands located at
the northwest corner of Don Mills Road and Eglinton Avenue
East. The proposal, which offers a mixed-use development
including residential, office and retail spaces, is still under
the review and re-zoning process. The net absorption in the
Central East market improved from -17,548 square feet in Q2
2015 to record a positive absorption this quarter at 40,299
square feet.
Trends
>> The vacancy rate has dropped from 5.5% in Q2 2015 to 4.7% in
Q3 2015.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Collection Group of Canada CGC
- 251-255 Consumers Road
Headlease 27,000
2.
Techtronic Industries Canada
- 7303 Warden Avenue
Headlease 18,182
3.
Catastrophe Response Unit Inc.
- 2001 Sheppard Avenue East
Headlease 8,991
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 18,259,041 18,259,041
Net Absorption (17,548) 40,299
Vacancy Rate 4.9% 4.7%
Availability Rate 12.0% 12.0%
Average Asking Net Rent $13.38 $12.74
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
7. 3377 Steeles Avenue East A 6 280,000 Bentall Real Estate Services Planned
8. 101 Gordon Baker Road A 12 250,000 Osmington Inc. Planned
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
Trez Capital
- York Mills Valley Centre
$23,030,559 145,000
5.
Bodhi Meditation
- 130 - 180 Yorkland Boulevard
$11,500,000 65,284
6.
Logan Building Office & Services
Inc. - 240 Logan Avenue
$5,600,000 14,315
Highway 407
Eglinton Ave
Finch Ave
Highway404
YongeSt
VictoriaParkAve
KennedyAve
Sheppard Ave
Steeles Ave
Highway 401
MarkhamRd
KeeleSt
7
SCARBOROUGH
TORONTO
8
Finch
Kennedy
Union
Lake Ontario
2
3 1
5
6
4
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
-100,000
-200,000
0
100,000
200,000
300,000
400,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
9. 9Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
GTA East
It has been a quiet quarter with minimal activities in the GTA
East market, absorption dropped to -64,093 SF, most of this
negative absorption took place in the A class buildings in both
Scarborough and Pickering/Oshawa submarkets. Vacancy rate
declined as well from 7.1% last quarter to 7.9% this quarter.
A few small-size sale activities were recorded this quarter,
ranging from $207 to $456 per square foot.
Trends
>> Average rental rates are still low and competitive at $11.41 per
square foot.
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 7,406,240 7,406,240
Net Absorption (12,531) (64,093)
Vacancy Rate 7.1% 7.9%
Availability Rate 9.9% 14.0%
Average Asking Net Rent $11.53 $11.41
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
1. 65 Bayly Street West 2 31,500 Medallion Corporation Q1 2016 Under Construction
2. 400 Consilium Place A 15 375,000 (up to 900,000 available in 3 towers) Kevric Corporation Planned
Taunton Rd
Kingston Rd
Highway 407
BrockRd
Sheppard Ave
Steeles Ave
Highway 40
York&DurhamLine
Scarborough
Town Centre
Stouffville
Pickering Osha
Markham
1
2
TORONTO
OSHAW
PICKERING
Lake Ontario
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-100,000
-150,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
10. 10 Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
GTA West
The GTA West office market experienced positive absorption
this quarter, declining the market’s vacancy rate to 10.6
percent from 10.8 percent. PointClickCare and other tenants
that inked deals in previous quarters have now occupied their
new space within the third quarter, attributing to the positive
absorption. PointClickCare occupied space at 5550 Explorer
Drive – space vacated by Target Canada. The relative speed
as to which this space was leased, combined with other large
deal announcements in this quarter, displays demand for
newly built Class A office space within the GTA West.
Trends
>> Desjardins recently renewed and expanded its office space at 1
and 3 Robert Speck Parkway.
>> Larger companies in the financial services/banking industry
have a high demand for office space within the GTA West.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Dejardins
- 3 Robert Speck Parkway
Renewal 190,000
2.
Dejardins
- 1 Robert Speck Parkway
Expansion 60,000
3.
JTI-Macdonald Corporation
- 1 Robert Speck Parkway
Renewal 30,441
Summary Statistics
Q3 2015 Regional Office Market Q2 2015 Q3 2015 Trend
Office Inventory 50,402,705 50,303,533
Net Absorption 405,918 83,779
Vacancy Rate 10.8% 10.6%
Availability Rate 16.6% 15.1%
Average Asking Net Rent $14.63 $14.33
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
6. 255 Longside Drive B 1 70,000 NC Warehouse Inc. Q3 2015 Under Construction
7. 2476 Argentia Road A 4 100,000 Sunlife Assurance Company of Canada Q3 2015 Under Construction
8. 1383 North Service Road East B 1 46,650 Carttera Private Equities Inc. Q3 2015 Under Construction
9. 1393 North Service Road East B 1 35,074 Carttera Private Equities Inc. Q3 2015 Under Construction
10. 2727 Meadowpine Boulevard A 7 200,000 Carttera Private Equities Inc. Q1 2016 Under Construction
11. 2201 Bristol Circle A 7 236,000 Westbury International (1991) Corporation Q1 2016 Under Construction
12. 610 Chartwell Road A 4 104,000 First Gulf Q3 2016 Under Construction
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
The Regional Municipality of Peel
- 7150 Mississauga Road
$21,950,000 79,406
5.
Community Trust
- 2350 Matheson Boulevard East
$8,570,000 40,000
Kipling
Georgetown
Milton
Lake Ontario
QEW
Highway 407
Highway 403
hwy427
Highway10
Highway 401
7 TORONTO
BRAMPTON
OAKVILLE
MISSISSAUGA
3
9
10
11
12
8
54 6
2 1
Historical Performance and Forecast
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
Net Absorption (SF) New Supply (SF) Vacancy Rate (%)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-200,000
-400,000
-600,000
0
200,000
400,000
600,000
800,000
1,000,000
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
20162Q
20163Q
11. 11Research & Forecast Report | Q3 2015 | Greater Toronto Area / Office | Colliers International
Glossary
Weighted Average Asking Net Rent:
The dollar amount requested by landlords for an available space, expressed as an average based on the weight of
available space.
Availability:
The total amount of space that is currently being marketed as available for lease or sublease at the end of the quarter.
It includes space that is available, regardless of whether the space is vacant or occupied.
Net Absorption:
The net absorption in available space in a given market between the current quarter and the previous quarter.
Direct Availability:
Space that is being offered for lease directly from the landlord or owner of a building, not space by another tenant in the
building trying to sublet a space that has already been leased.
Sublease Availability:
Sublet space that is available for sublease by a tenant to another lessee for a term equal to or shorter than that held by
the tenant under its original lease with the landlord.
Under Construction:
Buildings where actual ground breaking has occurred (site excavation or foundation poured) and construction is
ongoing (not abandoned or discontinued) but for which a certificate of occupancy has not yet been issued.
New Supply:
Total square footage with completed construction, where all that remains is the installation of tenant finishes.
Days on the Market (DOM):
How many days an available industrial property has been on the market for.
GTA Central:
Includes East York, Etobicoke, North York, Scarborough, Toronto and York.
GTA East:
Includes Ajax, Oshawa, Pickering, and Whitby.
GTA North:
Includes Aurora, Markham, Newmarket, Richmond Hill, Vaughan and Whitchurch-Stouffville.
GTA West:
Includes Brampton, Burlington, Caledon, Milton, Mississauga and Oakville.
GTA Southwest:
Includes Hamilton and Stoney Creek.
Forecast Assumptions & Terminology
Absorption was calculated using moving averages of historical absorption data and supplemented with incoming new
speculative and build-to-suit developments.
Colliers International has adopted NAIOP’s terms and definitions which is reflected in this glossary and report.