Office Market Dashboard: Downtown
Q3-09
MARKET INDICATORS
MAP OF MARKET Q2 2009
Q3 2009
Office Inventory*
67,448,899
68,829,726
Net Absorption
(77,853)
37,057
Vacancy Rate
5.1%
5.2%
Average Asking Net Rent
$24.29
$24.02
Average Additional Rent
$22.13
$21.85
Trend
*Office Inventory: For the purpose of this report, buildings with less than 10,000 sf of office space and buildings owned and occupied by the government have not been included in the office inventory. There are 564 office buildings surveyed in this market.
AVAILABLE SUPPLY SPLIT Sublease
Direct
Sublease as % of Total Available
8,000,000
50%
7,000,000
45%
Number of units on the market by size brackets
40%
6,000,000 Square Feet
AVAILABLE SPACE OPTIONS
35%
5,000,000
0 - 4k sf
4k - 10k sf
10k - 20k sf
20 - 50k sf
509
248
97
128
50k - 100k sf 100k sf +
30%
4,000,000
25% 20%
3,000,000
15%
2,000,000
# of units**
5%
0
0%
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
TOP Office Lease Transactions by Size
Avail. Office Space
Not Avail. Office Space
Address
Sq. Ft.
Landlord
Tenant
121 King St W
Suite 1550
21,834
Standard Life
70 University Ave
Suite 1100
17,808
Mackenzie Financial
Delta Hotels
370 King St W
Suite 802
11,145
Upper Canada Properties
N/A
Gross Rent
$70
Suite
Canadian Securities Institute
Q3 2009
GROSS RENT & AVAILABILITY BY BUILDING CLASS
1
RECENT TRANSACTIONS Q3 2009
10%
1,000,000
2
** Counting smallest divisible units in existing buildings and buildings which are under construction.
30,000,000
TOP Office Sale Transactions by Price $60
$62.98
25,000,000
$46.53
$50 $40
$28.35 $30
15,000,000
$35.30
Sq. Ft.
Gross Rent $/Sq. Ft.
20,000,000
10,000,000
Date
Address
Price
Vendor
Purchaser
Size
$/PSF
9/1/2009
McMurtry-Scott Building
$25,400,000
H&R REIT
Dundee REIT
221,950
$229
7/31/2009
110 Yonge Street
$21,750,000
CREIT
Bayfield Realty
150,323
$289
$4,425,000
Private Individual
Northern Lights Television
21,129
$209
9/24/2009
15 Duncan Street
OCCUPIED SPACE BY MAJOR BUSINESS CATEGORIES
$20 5,000,000
$10 $-
Finance 34%
-
Class AAA Class A Class B Class C Note: Not available office space (blue) and available office space (yellow) add up to the total inventory of office space in the respective building class.
Data,Publishing, Broadcasting Services 12%
18 MONTH TREND Absorption
Asking Net Rent
Vacancy Rate
Manufacturing & Distribution 6%
10.0%
23
$24.02
TOP PROJECTS UNDER CONSTRUCTION BY SIZE
8.0% 7.0%
19
5.2%
15
6.0% 5.0%
11 4.0% 7 3.0% 3 -1
Public Service & Private Sector Services 21%
Others 3%
9.0%
2.0%
Q2 2008
Q3 2008
Q4 2008
-5
Source: Colliers International, Q3 2009
Q1 2009
Q2 2009
Q3 2009
1.0% 0.0%
Vacancy Rate
Net Rent $/sf. / Absorption (100,000's)
27
Professional Services 24%
Address
Developer
Sq. Ft.
Anchor Tenant
Est. Com.
25 York Street
Menkes
780,000
Telus, Kinross,
Q3 2009
18 York Street
Great West Life
650,000
PricewaterhouseCoopers
Q1 2011
15 York Street
Cadillac Fairview
207,000
N/A TBD
Q1 2010
MARKET CHARACTERISTICS * Largest office market in the GTA with the lowest vacancy rate * GTA top annual rental rates are achieved in buildings located in this market * Market is in high demand by users looking for a prestige urban location and modern, state-of-the-art architecture * Limited parking, but great access to public transit and the PATH system, Toronto's underground walkway * Proximity to multiple amenities and services add convenience for employees and customers * Submarket will benefit from the development of the Metrolinx transportation plan and MoveOntario 2020.
Information contained herein has been obtained from the owners or other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. All properties subject to change or withdrawal without notice. All numbers reported use the most accurate information available at the time of publishing, however we acknowledge that there may be marginal changes over time as more accurate information becomes available.
Colliers Macaulay Nicolls (Ontario) Inc., Brokerage.