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
| APRIL 2009
Subleases by numbers During the month of April available sublet space grew at a rate of 2% to 3.16 Million square feet. This growth is significantly slower than was observed in March when available sublet space had risen at a rate of 12%. New sublet space was added in Downtown (45,501 sq. ft. or 4%) and GTA West (86,000 sq. ft. or 10.4%) while all other markets experienced a decline. The total number of units available for sublease increased by 9% and now totals 416. With the exception of GTA East, all markets ended up with more sublets at the end of April compared to a month earlier. With available sublet space staying reasonably constant and the number of units increasing during the month of April average unit sizes have scaled down indicating that units of smaller size have come onto the market. The average rent discount on sublet space compared to direct space has increased and now sits at 12% for the GTA. Both the Downtown and GTA East markets are currently offering the largest discount of 18%.
# of Sublease Availabilities*
Sublease Size in sf - Mean
Total sf of Subleases
Remaining Term in months - Mean
Average Asking Net Rent psf
GTA
416
7,598
3,160,732
41
$15.08
Downtown
176
6,966
1,226,032
40
$19.78
Midtown
36
5,023
180,825
49
$15.26
GTA North
25
8,070
201,756
51
$16.90
GTA West
108
8,510
919,107
37
$13.75
GTA East
71
8,916
633,012
42
$10.66
* 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
An increasing number of available sublets feature remaining lease terms of three years or longer. At the end of April 50% of the sublease listings fall into this group, 10% more than a month ago.
The number of months currently available sublet space has been marketed on average continues to hover around 5 months. Downtown and Midtown realized marginal decreases. In the GTA North to the contrary, the average has jumped from 3.9 to 5.1 months.
100
91
85
83
90
GTAWes West GTa t
7. 4
80
64
# of Subleases
70
50 40
GTa north
5. 1
GTA North
55
60
GTa Tota l
5. 0
GTa e a s t
5. 0
GTA Total
38
GTA East
30 Downtown
Downtown
20 10
4. 0
m idtown
Midtown
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
0. 0
2. 5 1. 0
2. 0
3. 0
4. 0
5. 0
6. 0
Months
Months
SubleaseS by SIZE Most of the sublet listings continue to be of a smaller nature as companies are severing off part of their premises for sublease to reduce rental expenses. Listings with a size range between 0 and 10,000 square feet represent 73% of the total square footage available for sublease, a slight increase from the previous month.
0 - 2,499 sf 99 Listings 155,504 sf 24%
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2,500 - 4,999 sf 113 listings 412,416 sf 27%
25,000 sf or more 11 Listings 333,924 sf 3%
20,000 sf to 24,999 sf 21 listings 476,143 sf 5%
5,000 - 9,999 sf 89 Listings 610,169 sf 21%
15,000 sf - 19,999 sf 34 listings 587,286 sf 8%
10,000 - 14,999 sf 49 Listings 586,819 sf 12%
7. 0
8. 0
GTA Sublease Report | April 2009 | Office Market Update
Availability Trend*
Colliers Fast Facts
Commercial real estate market fundamentals in the GTA softened further with direct available space (marketed by the landlord / owner of the building) and sublet space continuing their upward climb. Both central and suburban markets have reached levels of availability not seen since early 2007. Looking more closely at both direct and sublet availabilities it becomes apparent that, on a per square foot basis, direct available space has accounted for the vast majority of recent growth, while on a percentage basis sublet space appears to increase at a higher pace. During the month of April, total direct available space has increased by 455,000 square feet, or 3 percent, and sublet space has grown by 182,000 square feet, or 6 percent. * in surveyed office buildings of 10,000 sf or more in size
available Sublease Space
16,046,126 14,856,566
14,563,318
14,243,451
available Space in sf
Ian MacCulloch Vice President - Research Canada 416.643.3708 Ian.Macculloch@colliers.com
14,348,510
13,889,803
14,000,000
13,330,296
12,000,000
10,000,000
22.8% 19.4%
20.7%
20.5%
21.7%
8,000,000
17.4%
16.5%
18.2%
18.0%
18.6%
6,000,000
4,000,000
3,379,243
3,318,350
3,272,612 2,458,383
2,000,000
2,948,442
3,010,886 2,312,997
2,581,139
Q3 2008
Q4 2008
2,916,752
3,098,558
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q1 2009
Total available Space
available Sublease Space
% of available Sublease Space of Total available Space
8,000,000
7,385,492
7,077,431
7,000,000
7,113,418 6,440,408
6,483,507
6,480,440
7,308,562
5,888,260
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5,000,000
available Space in sf
Downtown Office One Queen Street East, Suite 2200 Toronto, Ontario Canada, M5C 2Z2 416.777.2200
6,439,544
6,391,543
6,000,000
4,000,000
20.0% 16.9% 3,000,000
19.9% 18.0%
18.0%
17.4%
18.0%
17.7%
18.5%
15.8%
2,000,000
1,251,693
1,229,159
1,017,747
1,298,357
1,165,094
Q4 2007
Q1 2008
1,271,793
1,059,999
1,161,438
1,258,564
1,355,438
Q1 2007
Q2 2007
Q3 2007
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Apr-09
FINANCIAL CORE - All Classes: Q1 2007 - Q1 2009 + April Total available Space
available Sublease Space
% of available Sublease Space of Total available Space
12,000,000
10,030,115 9,374,645 8,859,580
8,416,157
8,932,707 8,162,088
8,000,000
available Space in sf
Duerten Lindenbeck Senior Research Analyst 416.643.3764 Duerten.Lindenbeck@colliers.com
Apr-09
DOWNTOWN - All Classes: Q1 2007 - Q1 2009 + April
6,000,000
1,324 Professionals
16,683,207
16,000,910
10,000,000
4,244 Transactions
Contact information 17,415,607
16,000,000
1,000,000
284 million sq. ft. under management
% of available Sublease Space of Total available Space
20,000,000
18,000,000
$220 million in revenue
$6.1B Total transaction value
GTA - All Classes: Q1 2007 - Q1 2009 + April Total available Space
19 offices in Canada
7,775,932
7,791,643
19.0%
19.5%
7,908,966 7,442,036
21.2% 20.6%
19.7% 17.1%
18.0%
18.6%
18.6%
16.8%
4,000,000
2,000,000
2,127,550
1,828,104
1,440,636
1,605,239
1,480,463
Q4 2007
Q1 2008
1,522,437
1,252,998
1,419,701
Q3 2008
Q4 2008
1,658,188
1,743,120
Q1 2007
Q2 2007
Q3 2007
Colliers International www.colliers.com/toronto
Q2 2008
Q1 2009
Apr-09
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