c o l l i e rs i n t e r n at i o n a l
G TA S u b l e as e R e p o rt O F F I C E M A R K E T U P D AT E
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M AY 2 0 0 9
Subleases by numbers During the month of May the growth of sublet space increased from 2% in April to almost 6%. All markets added new sublet space with Midtown (26% or 47,213 square feet) and GTA West (5.4% or 49,888 square feet) taking the lead. The total number of units available for sublease increased by less than 2% and now totals 424. As seen in April, with the exception of GTA East, all markets had more sublets at the end of May. Average unit sizes have expanded by 3% after they shrank by 7% in April. Larger units are predominantly found in suburban markets. The average asking net rent discount on sublet space compared to direct space at the end of May sits at 11% (12% in April) on average for the GTA. Both Downtown and GTA East continue to offer the largest discount of 18% and 16%, respectively.
# of Sublease Availabilities*
Sublease Size in sf - Mean
Total sf of Subleases
Remaining Term in months - Mean
Average Asking Net Rent psf
GTA
424
7,828
3,318,990
40
$15.43
Downtown
175
7,245
1,267,875
39
$19.58
Midtown
40
5,701
228,038
48
$15.29
GTA North
28
7,361
206,099
47
$17.47
GTA West
110
8,809
968,995
36
$13.64
GTA East
71
9,127
647,983
40
$10.87
* Note: For this statistic the smallest available units are considered. Any contiguous & divisible units are NOT included.
tRemaining
Term of Subleases in the GTA Office Market
Average Time on the Market of Available Sublease Space by Markets
The distribution of sublets by remaining lease term has stayed close to what was observed at the end of April. At the end of May, 48% of the sublease listings quoted a remaining term of three years or more, just 2% less than a month ago.
The average number of months currently available sublet space has been marketed continues to hover around 5 months. GTA North and GTA West averages decreased by a month, while all other markets’ averages hiked up marginally.
120
GTa West GTa east
81
76
80 # of Subleases
6.3
98
100
62
62
60 45
GTa Total
40
Downtown
20
GTa north
0 12 Months or less
13 to 24 Months
25 to 36 Months
37 to 48 Months
49 to 60 Months
More than 60 Months
5.4 5.0 4.6 4.1
midtown
2.9 0.0
1.0
2.0
3.0
4.0
SubleaseS by SIZE
2,500 - 4,999 sf 110 Listings 399,839 sf 27%
Most of the sublet listings remain to be of smaller nature as companies shed underutilized space to reduce rental expenses. Listings with a size range between 0 and 10,000 square feet continue to represent the majority of both the total square footage available for sublease (55%), and the number of sublet listings (70%).
0 - 2,499 sf - 99 Listings 157,851 sf 23%
25,000 sf or more - 12 Listings 368,592 sf 3%
www.colliers.com/toronto
5.0
6.0
7.0
Months
5,000 - 9,999 sf 91 Listings 631,990 sf 21%
10,000 - 14,999 sf - 54 Listings 644,153 sf 13% 15,000 sf - 19,999 sf - 36 Listings 617,690 sf 9% 20,000 sf to 24,999 sf - 22 Listings 498,875 sf 5%