Office Submarket Dashboard: Downtown West SUBMARKET INDICATORS
Q3-09
MAP OF SUBMARKET
Q2 2009
Q3 2009
Office Inventory*
14,431,484
14,434,984
Net Absorption
57,588
38,875
Vacancy Rate
7.9%
7.2%
Average Asking Net Rent
$21.99
$22.01
Average Additional Rent
$15.31
$14.99
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 217 office buildings surveyed in this submarket.
AVAILABLE SUPPLY SPLIT Direct
Sublease
Sublease as % of Total Available
60%
1,600,000 50%
AVAILABLE SPACE OPTIONS
Square Feet
1,400,000
Number of units on the submarket by size brackets
1,200,000
40%
1,000,000
30%
800,000
20%
0 - 4k sf
4k - 10k sf
10k - 20k sf
20 - 50k sf
50k - 100k sf
100k sf +
185
69
13
12
1
0
# of units**
** Counting smallest divisible units in existing buildings and buildings which are under construction.
600,000 10%
400,000 0%
200,000
TOP Office Lease Transactions by Size
0
-10%
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Avail. Office Space
Not Avail. Office Space
Address
Suite
Sq. Ft.
Landlord
Tenant
370 King St W
Suite 802
11,145
Upper Canada Properties
N/A
276 King St W
Suite 301
5,200
Ed Mirvish Enterprises
Apple Canada Inc.
331-333 Adelaide St W
Suite 200
4,724
Allied Properties REIT
N/A
Q3 2009
GROSS RENT & AVAILABILITY BY BUILDING CLASS Gross Rent
$45
10,000,000 $28.70
$40
RECENT TRANSACTIONS Q3 2009
9,000,000
$42.60
TOP Office Sale Transactions by Price 8,000,000
$35
Date
Address
Price
Vendor
Purchaser
Size
$/PSF
$4,425,000
Private Individual
Northern Lights Television
21,129
$209
7,000,000 $30
9/24/2009
15 Duncan St
5,000,000
$25.02 $20
Sq. Ft.
Gross Rent $/Sq. Ft.
6,000,000 $25
OCCUPIED SPACE BY MAJOR BUSINESS CATEGORIES
4,000,000 $15
Data,Publishing, Broadcasting Services 20%
3,000,000
$10
2,000,000
$5
Class A
Class B
Manufacturing & Distribution 13%
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.
18 MONTH TREND
Others 4%
Public Service & Private Sector Services 17%
TOP PROJECTS UNDER CONSTRUCTION BY SIZE
Absorption
Asking Net Rent
Address
Vacancy Rate
25
10.0% 9.0%
21
17
7.2%
15 13
7.0% 6.0%
11
5.0%
9 7
4.0%
5
3.0%
3 1
Sq. Ft.
Anchor Tenant
* Offering all downtown location advantages but at lower rental prices than in the Financial Core - excellent options for those tenants whose operations do not require a core location * Good connections to public transit (streetcars along King St W and Queen St W) and easy access to Gardiner Expressway makes this submarket accessible to employees and customers. * With new residential high-rise development (e.g. Concord's CityPlace), the labour pool will increase, expand and diversify * Significant amount of former factory buildings have been converted into office buildings hosting information industry, art and design workspaces - aka Brick & Beam office space * Submarket will benefit from the development of the Metrolinx transportation plan and MoveOntario 2020.
2.0% Q2 2008
Q3 2008
Q4 2008
-3 -5
Q1 2009
Q2 2009
Q3 2009
Est. Com.
SUBMARKET CHARACTERISTICS
8.0%
Vacancy Rate
19
Developer
No construction took place during this period.
$22.01
23
Net Rent $/sf. / Absorption (10,000's)
Professional Services 40%
1,000,000
$-
-1
Finance 6%
1.0% 0.0%
Source: Colliers International, Q3 2009 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.