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1. COLLIERS INTERNATIONAL
If You Build It, Will They Come?
A closer look at the surge of Downtown Toronto office development
It is no secret that Toronto is experiencing a “building and fully leased by the time it was ready for occupancy.
boom”– there are currently more construction cranes in In the last five years, 6 buildings (including the PwC Tower)
Toronto than any other North American city. While the have been built, a total of 4.6 million square feet, all with
majority of the cranes account for residential development, little or no availability upon their completion.
there are some significant new office developments on the
Currently, there are 8 office developments under construction
horizon, which will be a welcome addition to the tight office
in the Downtown market, which will add a total of nearly
market. Currently, the vacancy rate for the Downtown
5 million square feet to the inventory throughout the
market is at 5.1 percent, the lowest recorded since 2001
next three years. A considerable amount of that space
when it reached an all-time low of 4.0 percent.
has already been leased. In addition to the 8 buildings
The last significant development in the Downtown Core mentioned above, there are another 15 potential office
was nearly two years ago; the PwC Tower at 18 York development sites that are actively marketing pre-lease
Street, which was largely pre-leased prior to construction opportunities.
PLANNED & UNDER CONSTRUCTION DEVELOPMENTS IN THE DOWNTOWN CORE
*NOTE: This map does not include proposed or under
construction developments outside of the boundaries shown.
www.colliers.com/toronto

2. THE SURGE OF OFFICE DEVELOPMENT IN THE DOWNTOWN CORE | JANUARY 2013
Residential development has been rampant with the growing trend of the younger
generation wanting to live and work downtown. The shorter commute time and the
480 offices in
ability to travel via public transit is a large draw for many employees, and not just the 61 countries on
younger generation entering the workforce. There has been an increase of companies
relocating to the downtown core in the last few years, most notably Google, Coca-Cola, six continents
and TELUS. United States: 135
The buildings currently under construction equate to approximately 7 percent of our Canada: 39
inventory. In comparison, Downtown Manhattan has a vacancy rate of 16 percent and Latin America: 17
currently has 5.2 million square feet under construction, equivalent to 4.7 percent of Asia Pacific: 194
their current inventory. The Boston market has a current vacancy rate of 14.0 percent EMEA: 95
and has nearly 2.5 million square feet currently under construction, equating to 4 • $1.6 billion in annual revenue
percent of their current inventory. If space is being built with vacancy rates at 14 to • 672.9 million square feet
16 percent, obviously the demand for the brand new high quality space does in fact under management
exist in any market. • More than 10,000 professionals
Colliers International currently tracks 75 office markets in North America. Toronto
ranks 7 th as having the lowest vacancy rate. Of the top 10 markets with the lowest
vacancy rate, 8 are Canadian markets. This helps support that Canada’s economy
continues to be strong, and commercial real estate is far more competitive here than CONTACT INFORMATION
in the United States.
The last 5 years show an average annual absorption of nearly 1.3 million square feet, John Arnoldi
and Toronto has added an average of 1.1 million square feet of new supply to the market Executive Managing Director |
throughout the last five years. If this is the level of activity the market experiences Greater Toronto Region
during a “recession” period, we should buckle up, as this will be quite the ride. +1 416 643 3733
john.arnoldi@colliers.com
Shawna Rogowski
DOWNTOWN OFFICE MARKET - 1989-2014 Research Manager |
Greater Toronto Region
+1 416 643 3764
shawna.rogowski@colliers.com
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or implied, regarding the information including, but
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Inc., Brokerage.
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