October 29, 2012
Prepared by:
Colliers International Toronto
WELCOME TO TORONTO Welcome to Toronto - one of North America’s most dynamic, diverse and fastest growing cities! With some 6 million plus residents in the Greater Toronto Area and an average of some 85,000 new immigrants arriving annually (Source: Citizenship and Immigration Canada), Toronto is a city that knows no limits with opportunities plenty abundant! A large and key component that makes this buzzing metropolis so attractive to businesses seeking their fortune is the Information and Communications Technology (ICT) sector. With more than 175,000 workers and more than 11,500 firms, this youthful sector continues to expand and innovate itself to some $52 billion in revenues annually! (Source: Toronto Region Research Alliance, 2011) It includes all the major industry players such as IBM, Microsoft, Google and Dell to name just a few, however some 28% of firms have 19 or fewer employees and some 49% of firms have fewer than 99 employees, making Toronto a hotbed for start-ups! (Source: Toronto Region Research Alliance, 2011) In addition, according to ITbusiness.ca, Toronto is ranked number two in North America (after Houston) for easiest city to find an IT job! What does this all mean to you? It simply means that the Greater Toronto Area is a great place to do business from and within that area we think that there’s no better place to do business from than right here in the center of it all, namely downtown!
WELCOME TO TORONTO Like many cities, we are witnessing a migration back to the core with many companies opting for locations near or close to the heart of the city. As Coca-Cola has recently done, as Apple has recently done and as Google has recently done, all these firms are going to where the talent is and more and more they’re discovering that that’s in the heart of the city. With this top of mind and knowing your business is the business of incubation, we’ve put together a list of our top five picks for your firm. We picked one from each of the following five perspectives: Brick & Beam, Branding, Cost Effectiveness, Floor Plate Size and Planned Developments. There’s one of each so depending from which perspective you’d like to tackle this, we’ve got it covered. Naturally a more extensive survey can be assembled, however we feel that these options provide an excellent jumping point from which to spring into the amazing city that Toronto is! In addition we’ve inserted a quick market snapshot along with a map showing the picks and the various tenancies in and around them. Welcome to Toronto from Your Colliers Toronto Brokerage Team! Al Bolter, Vice President, Broker Chris Fyvie, Associate Vice President, Sales Representative
MARKET SNAPSHOT Q3 2012
Vacancy Rate
20.0 15.0
1500 6.3%
1000
10.0 5.0
500
0.0
0 2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 2012 2012 Q1 Q2 Q3
GTA 24 Month Trend
-1000
-5.0
400
20
200
5.7%
0
Absorption
Vacancy Rate
Average Net Rent
0
-200
-400
10
0 2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
Downtown West 24 Month Trend
2012 Q3
-10
-20
2012 Q1
2012 Q2
2012 Q3
Financial Core 24 Month Trend
Vacancy Rate
-20
Q3 2012 4,625,442 4.3% $33.08 Average Net Rent 30 $19.27
400 Thousands (SF)
5.8%
2011 Q4
600 Asking Net Rent ($) / Vacancy Rate (%)
Thousands (SF)
200
20
2011 Q3
-10
Absorption 30
$20.05
2011 Q2
Downtown East Office Inventory Vacancy Rate Average Asking Gross Rent
Q3 2012 13,826,395 5.8% $34.03
400
2011 Q1
-200
-10.0
200
4.3%
-400
20
10
0
0
-200
10
0 2010 Q4
-400
600
Average Net Rent 30
-15.0
Downtown West Office Inventory Vacancy Rate Average Asking Gross Rent
Vacancy Rate
$27.99
Thousands (SF)
Asking Net Rent ($) / Vacancy Rate (%)
$17.87
Q3 2012 34,511,984 5.7% $55.81
600
25.0
2000 Absorption (Thousands SF)
Absorption
Average Net Rent
2500
-500
Financial Core Office Inventory Vacancy Rate Average Asking Gross Rent
Asking Net Rent ($) / Vacancy Rate (%)
Absorption
Q3 2012 185,718,642 6.3% $34.48
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
Downtown East 24 Month Trend
2012 Q3
-10
-20
Asking Net Rent ($) / Vacancy Rate (%)
Greater Toronto Area Office Inventory Vacancy Rate Average Asking Gross Rent
# 1 2 3 4 5
Addresss 171 East Liberty 111 Richmond Street W. 555 Richmond Street W. 901 King Street W. 134 Peter Street
Recommendation Brick and Beam Downtown Branding Cost Effective Large Floor Plate Planned Development
This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). Š 2011. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls (Ontario) Inc., Brokerage
TOP 5 Picks
1
BRICK & BEAM DOWNTOWN WEST 171 EAST LIBERTY
2
BRANDING 111 RICHMOND STREET WEST
3
COST EFFECTIVE 555 RICHMOND STREET WEST
4
LARGE FLOOR PLATE 901 KING STREET WEST
5
PLANNED DEVELOPMENT 134 PETER STREET
171 EAST LIBERTY STREET Brick & Beam Downtown West
Building Size Floor Plate Available Rental Rate Additional Rent
150,000 SF 49,000 SF 18,970 SF (2nd floor) $25.00 $9.13 + hydro (2012)
This renovated mixed-use campus is located in the heart of Liberty Village, a prime location in Toronto’s premier brick and beam district of Downtown West. The site features attractive office space and on-site parking with many excellent amenities nearby. The complex is upgraded with all new services and the units feature 13’ to 22’ ceiling heights with great natural light.
111 RICHMOND STREET WEST Branding
Building Size Floor Plate Available Rental Rate Additional Rent
216,000 SF 15,320 SF 75,000 SF (9th & 10th floor) $24.00 $22.00 (2012)
Google just took occupancy in this recently retrofitted building in the heart of downtown Toronto and is subleasing two additional floors for up to a five year term. Space will be built out in an open concept format with some partitions, however tenant may adapt to their specific needs. It’s an excellent opportunity to piggy-back on one of the internet’s strongest brands.
555 RICHMOND STREET WEST Cost Effective Solution
At a significant cost savings to buildings in Toronto’s downtown financial core, this site delivers a cost effective solution to being in a quality and professional building in the midst of the Toronto Downtown West trendy neighborhood. It features 24/7 security and underground parking as well as professional lobby finishes and a restaurant and convenience store on site.
Building Size Floor Plate Available Rental Rate Additional Rent
305,856 SF 25,500 SF 50,976 SF (2nd & 3rd floors) $18.50 $12.25 (2012)
901 KING STREET WEST Large Floor Plate
Building Size Floor Plate Available Rental Rate Additional Rent
260,296 SF 37,500 SF 75,000 SF (3rd & 4th floors) $21.50 $16.25 (2012)
With floor plates up to almost 38,000 sq. ft. in size, this building provides a unique alternative to planning an efficient floor catering to your exact business needs. 901 King is a modern building within walking distance of GO Transit (Toronto’s commuter trains) as well as a short cab ride to City Centre Airport. The building has underground parking and depending upon the size of the requirement offers non-exclusive building-top signage.
134 PETER STREET Planned Development
Integrating the old with the new, this planned development coined QRC West or Queen Richmond Centre West is scheduled for completion late 2014/early 2015 and will most certainly become one of Toronto’s landmark locations. It will feature the adaptive reuse of an existing historic building while offering forward-looking companies character space with impact. The development is planned to attain LEED Gold designation incorporating many of the latest advances in building technology design. Building Size Floor Plate
299,178 SF 23,600 SF
Rental Rate $ TBD Additional Rent $18.74 (2014)
Available 284,460
Colliers Tenant Services As a Colliers Toronto client, you’ll have the advantage of tapping into the following services as required: > Lease negotiations and renewals
> In-depth analysis of alternative locations
> Disposition and sublease strategies
> Lease and operating cost audits
> Consolidation and redundant space solutions
> Employee surveys
> Sustainability/ LEED initiatives
> In-depth Location analysis; supplier/employee mapping
> Workplace design and test fit analysis
> Build-to-suits
> Base building analysis/ Building audit
> Multi Market Occupier Services We look forward to serving you!
Your Colliers Toronto Team Albert Bolter, Vice President, Broker Tel +1 416 643 3480 Albert.Bolter@colliers.com Chris Fyvie, Associate Vice President, Sales Representative Tel +1 416 643 3713
Chris.Fyvie@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). Š2012. All rights reserved.