2. 2 Research & Forecast Report | Q2 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 | Q2 2015 | Greater Toronto Area / Office | Colliers International
GTA Market Overview
Market Overview
Toronto’s Downtown office market continues to
experience high demand, where vacancy rates declined
once again and now sit at 2.6 percent. As displayed in
previous quarters, much of demand within the Downtown
market continues to be for newly-built or renovated
space. Numerous companies have vacated and continue
to leave older buildings within the Downtown for newer
ones. Currently, of the big block spaces (100,000 square
feet and up) available within the Downtown, much is
within older Class AAA and Class A buildings. On the
other hand, many of the newly-constructed buildings
have no available space, and of the almost four million
square feet of office space that is currently under
construction, much of this is fully pre-leased or more
than 50 percent pre-leased. This is a trend that is not
exclusive to Downtown as large tenants are favouring
newer space within certain suburban markets. An
example of the shift towards new office space is Marsh &
Mclennan Companies and TJX Companies occupying
space within newly- built 120 Bremner (Downtown) and
60 Standish Court (GTA Suburban West) this quarter,
both leaving big block space that is still available in the
older buildings that they vacated. Building amenities,
collaborative workspaces and environmental efficiencies
show the differences between newly-built buildings and
older office stock and why these new spaces are
successfully attracting tenants across various industries.
Investment Market
The Toronto investment market saw a gradual increase in
activity over Q1, 2015 but has continued to remain
relatively slow in transaction activity in contrast to recent
years. Despite the slowdown within the central markets,
buyers continue to purchase space throughout the
Greater Toronto Area, beyond the traditional Downtown
and Midtown markets. According to RealNet data, during
Q2, 2015, sales outside of the Downtown and Midtown
markets (+$2MM CND) attributed to 64% of all deal
volume. Sales within the City of Markham alone
contributed to 31% of the total deal volume, with the
GTA’s largest sale in Q2, 2015 taking place in Markham at
675 Cochrane Drive, a 365,000 office asset sold by
BCIMC Realty Corporation to Crown Realty Partners for
$97,470,000.
Market Indicators
Relative to prior period
Market Q1
2015
Market Q2
2015
Market Q3
2015* Trend
VACANCY RATE 5.3% 5.5%
NET ABSORPTION 432,300 391,852
AVAILABILITY RATE 11.4% 10.7%
NET RENTAL RATE** $17.77 $18.65
*Projected
**Rental rates for current quarter are for CBD. Rent forecast is for metro-wide rents.
Tenant Demand
The financial services sector is leading demand for office
space throughout the GTA, but primarily in the Downtown
and GTA West this quarter. There is also an increased
demand from engineering and communications
companies looking for space within the GTA. The
engineering companies are almost exclusively looking for
space within the GTA West, while Communications
companies are seeking space throughout the city.
Q2 2015 – 1,678,600 Square Feet
Financial Services
Engineering
Communications
Technology/Software
Architectural, Engineering and Related Services
Government Services
* Other (Entertainment, Interior Design, Law, Transportation and Retail Trade.
30%
15%
15%
10%
5%
5%
4%
3%
3%
2%
8%
Financial S
Engineerin
Communic
Technolog
Architectu
Governme
Real Estat
Wholesale
Security S
Banking
Other (Ent
Retail Trad
Real Estate
Wholesale Trade
Security Services
Banking
Other*
Historical Performance and Forecast
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
(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 | Q2 2015 | Greater Toronto Area / Office | Colliers International
Downtown
While overall vacancy rates continue to be low within the
Downtown market, there is a large amount of big block space
available in some of the market’s bigger Class AAA and A
buildings. 181 Bay Street, First Canadian Place, Bay Adelaide
Centre and 161 Bay Street are some examples of high-quality
buildings with an inventory of available big block space. This
is partially due to increased competition stemming from the
success of new or under construction buildings in attracting a
diverse set of tenants. Not only are large tenants such as RBC
and Marsh & Mclennan Companies moving into new buildings,
but smaller companies across numerous industries are favoring
newly-built office space. For example, 134 Peter (currently under
construction) has been fully pre-leased with a mix of small- and
medium-sized tenants across numerous industries such as
investment, consumer goods, technology/software and others.
Trends
>> Vacancy rates remain low within the Downtown submarkets,
primarily the Downtown West, South and East.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Blaney McMurty LLP
- 2 Queen St East
Renewal 80,000
2.
Torkin Manes LLP
- 151 Yonge St
Renewal 50,000
3. D+H - 120 Bremner Blvd Headlease 31,000
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 75,928,990 75,928,990
Net Absorption 602,230 236,367
Vacancy Rate 2.7% 2.6%
Availability Rate 9.2% 7.7%
Average Asking Net Rent $28.55 $29.18
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
6. 134 Peter Street A 17 299,178 Allied Properties REIT Q2 2015 Under Construction
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 First Gulf Q2 2016 Under Construction
9. 43A Parliament St 5 71,000 Bresler, Urbacon Q2 2016 Under Construction
10. 1 York Street A 35 800,000 HOOPP / Menkes Q3 2016 Under Construction
11. 100 Adelaide Street W AAA 40 905,722 Oxford Properties Group Inc. Q2 2017 Under Construction
12. 130 Queens Quay East 178,300 Daniels Corporation Q2 2019 Under Construction
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
4.
Hullmark -
230 & 240 Richmond Street West
$17,500,000 119,442
5.
Allied Properties REIT
- 176 - 180 John Street
$8,290,000 62,469
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
15
9
4
3
6
827
10
11
12
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%
8.0%
9.0%
-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
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
5. 5Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
Midtown
The overall vacancy rate in the Midtown market once again
decreased this quarter from the previous one from 3.0
percent to 2.4 percent. The Yonge-Bloor and Yonge-Eglinton
submarkets continue to have very low vacancy and availability
rates as space demand increases within these transit
accessible markets. With no new supply or office space under
construction within the Midtown market, vacancy rates are
likely to remain the same for the foreseeable future. This could
lead to an increase in average rental rates.
Trends
>> The total number of under construction and planned residential
condominiums within the Yonge-Bloor and Yonge-Eglinton
submarkets continues to increase.
>> The condominiums that are currently under construction within
the Yonge-Bloor and Yonge-Eglinton submarkets could lead to
increased demand for live-work office space within the area.
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 19,387,861 19,387,861
Net Absorption -18,575 65,388
Vacancy Rate 3.0% 2.4%
Availability Rate 8.6% 6.8%
Average Asking Net Rent $19.19 $18.48
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
4. 135 Yorkville Avenue A 11 50,000 Camrost Felcorp Q3 2016 Planned
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
1.
Clifton Blake
- 1133 Yonge Street
$21,500,000 63,237
2.
2462790 Ontario Inc.
- 17 Prince Arthur Avenue
$16,200,000 20,000
3.
Manulife Financial
- 1300 Yonge Street
$9,310,000 99,875
Bloor St
Dundas St
Queen St
Eglinton Ave
LansdowneAve
YongeSt
BayviewAve
DufferinSt
Lawrence Ave
Gardiner Expwy
TORONTO
3
14
2
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%
-100,000
-50,000
0
50,000
100,000
150,000
200,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
6. 6 Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
Central North
The Central North experienced negative absorption this quarter
as space previously held by Proctor and Gamble within 4711
Yonge has become available. With this large block of space
coming to market, it could test the demand for space within
area. Little space was previously available throughout the
Central North, especially in the North-Yonge Corridor.
Trends
>> With great public transit and highway accessibility, the North-Yonge
Corridor continues to be an attractive submarket for companies.
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 12,026,988 12,026,988
Net Absorption -1,456 -183,571
Vacancy Rate 1.7% 3.2%
Availability Rate 6.8% 6.1%
Average Asking Net Rent $17.27 $17.08
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
2. 4800 Yonge Street A 25 393,000 Oxford Properties Group Q4 2016 Planned
3. 4050 Yonge Street A 7 367,000 Build Toronto Inc. Q4 2016 Planned
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
1.
Manulife Financial
- 100 Sheppard Avenue East
$33,329,000 273,850
Sheppard Ave
Highway 401
Lawrence Ave
Finch Ave
YongeSt
BayviewAve
KeeleSt
Steeles Ave
Eglinton Ave
BathurstSt
York University
3
2
TORONTO
VAUGHAN
1
Lawrence
Sheppard
Finch
Downsview
Lawrence West
Eglinton West Eglinton
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
-50,000
0
50,000
100,000
150,000
200,000
250,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
7. 7Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
GTA North
Availability and vacancy rates have been increasing slightly
within the GTA North market over the past year. These rates
will decline in the upcoming quarters as some companies
recently signed leases for large blocks of space within
the market. TD Bank signed a lease for about 140,000
square feet of space at 101 Mcnabb (previously vacated by
American Express) and LexisNexis Canada signed a lease for
approximately 50,000 square feet of space at 11 Gordon Baker.
Trends
>> The Markham Town Centre office submarket continues to struggle
with high vacancy (21.4%) and availability rates (23.7%) that have
not seen much of a change over the past year.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Huawei - 19 Allstate Pkwy and
15 Allstate Pkwy
Headlease 125,000
2. Holcim - 7880 Keele St Headlease 50,000
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 14,559,776 14,624,545
Net Absorption -36,945 -102,171
Vacancy Rate 8.3% 8.9%
Availability Rate 13.7% 13.7%
Average Asking Net Rent $15.09 $15.99
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
3. 3100 Rutherford Road A 4 64,769 Lorwood Holdings Inc. - Elmgate Holdings Q2 2015 Completed
4. 7777 Weston Road A 8 136,000 Liberty Developments Q3 2016 Planned
5. Millway Rd. at Apple Mill Rd A 14 350,000 Calloway REIT, SmartCentres Q1 2016 Planned
6. 2833 16th Avenue 60 9,000,000 Cadillac Fairview Q4 2016 Planned
Newmarket
Richmond
Hill
King City
Highway 407
Aurora RdWellington St
Highway404
YongeSt
Stouffville Rd
WardenAve
Highway400
Steeles Ave
King Rd
Highway27
Davis Dr
3
6
VAUGHAN
RICHMOND HILL
AURORA
1
25
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%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
8. 8 Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
Central East
The overall vacancy rate within the Central East market was
left unchanged from the previous quarter, remaining at 5.5
percent. While vacancy rates have stayed relatively the same
within this market, opportunity could exist for growth as the
Eglinton LRT gets closer to completion. The availability of
transit (LRT), coupled with great highway access and very
competitive net and gross rents, could increase office leasing
activity within this market, primarily the Don Mills/Eglinton
Submarket.
Trends
>> No new office buildings are currently under construction within this
market, as supply seems to be currently meeting market demand.
not seen much of a change over the past year.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1. TD Bank - 101 McNabb St Headlease 140,000
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 18,259,041 18,259,041
Net Absorption -23,719 -17,548
Vacancy Rate 5.5% 5.5%
Availability Rate 10.6% 12.0%
Average Asking Net Rent $12.96 $13.38
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
4. 3377 Steeles Avenue East A 6 280,000 Bentall Real Estate Services Planned
5. 101 Gordon Baker Road A 12 250,000 Osmington Inc. Planned
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
2.
The Bank of Nova Scotia
- 90 Wynford Drive
$16,600,000 172,113
3.
Integrated Condominium
Management - 18 Wynford Drive
$12,311,830 97,615
Highway 407
Eglinton Ave
Finch Ave
Highway404
YongeSt
VictoriaParkAve
KennedyAve
Sheppard Ave
Steeles Ave
Highway 401
MarkhamRd
KeeleSt
4
SCARBOROUGH
TORONTO
5
Finch
Kennedy
Union
Lake Ontario
1
3 2
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%
10.0%
-300,000
-200,000
-100,000
0
100,000
200,000
300,000
400,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
9. 9Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
GTA East
Little has changed within this market over the past year with
a slowing in leasing activity. Vacancy and availability rates
remain relatively high in the Pickering/Oshawa submarket at
7.4 percent and 15.6 percent respectively. Leasing activity
within the Scarborough Town Centre submarket will be
enhanced by the Consilium Place renovations which will
be completed this fall. With businesses throughout the city
displaying an appetite for new built-out office space, Consilium
Place should be competitive in attracting companies. The
location of the STC subway stop is under review.
Trends
>> Average Net and Gross Rents in the GTA East market are very cost
competitive as they remain the lowest in the GTA.
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 7,406,240 7,406,240
Net Absorption -52,552 -12,531
Vacancy Rate 6.9% 7.1%
Availability Rate 7.7% 9.9%
Average Asking Net Rent $11.51 $11.53
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
1. 65 Bayly Street West 2 31500 Medallion Corporation 2016 Under Construction
2. 400 Consilium Place 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
2
1
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%
14.0%
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
10. 10 Research & Forecast Report | Q2 2015 | Greater Toronto Area / Office | Colliers International
GTA West
Although the GTA West vacancy and availability rates continue
to trail the performances of other suburban centers and the
downtown node, there was just under 800,000 square feet
of new office inventory added to the market and another
1.3 million square feet that is currently under construction.
Sobeys Inc. completed their office expansion and consolidation
into 237,000 square feet in Q2, 2015 as did TJX Group of
Companies with their new facility at 60 Standish Court. This
continuing trend of movement to newer office facilities has
developers announcing further speculative office projects with
the most recent being Carterra Private Equities who will break
ground on just over 100,000 square feet within their Oakwoods
Business Park Development in Oakville in late summer.
Trends
>> Recent announcements have several of the large block vacancies
being leased up. These include PointClickCare and the Bank of
Nova Scotia.
Notable Lease Transactions
TENANT NAME - ADDRESS TYPE
APPROXIMATE
SIZE (SF)
1.
Desjardins - 3 Robert Speck pkwy
& 1 Robert Speck pkwy
Renewal and
Expansion
190,000 &
60,000
2. PointClickCare - 5550 Explorer Dr Headlease 185,000
3. Maple Leaf Foods - 6985 Financial Dr Renewal 104,731
4.
Investment Planning Council
- Spectrum Square
Headlease 50,000
Summary Statistics
Q2 2015 Regional Office Market Q1 2015 Q2 2015 Trend
Office Inventory 49,617,239 50,402,705
Net Absorption -36,683 405,918
Vacancy Rate 10.0% 10.4%
Availability Rate 16.9% 16.6%
Average Asking Net Rent $15.13 $14.63
Notable Lease Notable Sale New Supply
Upcoming New Supply
ADDRESS CLASS FLOORS SIZE (SF) DEVELOPER COMPLETION STATUS
8. 60 Standish Court (West Tower) A 7 179,000 Orlando Corporation Q2 2015 Completed
9. 60 Standish Court (East Tower) A 6 156,000 Orlando Corporation Q2 2015 Completed
10. 1 Prologis Boulevard A 5 146,863 HOOPP - Healthcare of Ontario Pension Plan Q2 2015 Completed
11. 5015 Spectrum Way A 5 134,000 HOOPP - Healthcare of Ontario Pension Plan Q2 2015 Completed
12. 1100 Walker’s Line A 6 60,000 Kamisa Corp Q2 2015 Completed
13. 85 Prologis Boulevard B 1 44,751 HOOPP - Healthcare of Ontario Pension Plan Q2 2015 Completed
14. 1006 Skyview Drive A 2 36,339 Q2 2015 Completed
15. 1375 North Service Road East A 1 28,513 Carttera Private Equities Inc. Q2 2015 Completed
Notable Sale Transactions
PURCHASER - ADDRESS PRICE
APPROXIMATE
SIZE (SF)
5.
Manulife Financial
- 5090 Explorer Drive
$22,540,000 169,050
6.
The Regional Municipality of Peel
- 7150 Mississauga Road
$21,950,000 79,406
7. Manulife Financial - 25 Watline Avenue $8,428,000 88,550
Kipling
Georgetown
Milton
Lake Ontario
QEW
Highway 407
Highway 403
hwy427
Highway10
Highway 4016
15
13
14
TORONTO
BRAMPTON
OAKVILLE
MISSISSAUGA
12
3
8 59
1011 2
47
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%
-600,000
-400,000
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
20151Q
20152Q
20153Q
20154Q
20161Q
11. 11Research & Forecast Report | Q2 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.