GTA Office Market Report Toronto Q4 2020
• Vacancy across the city increased this quarter to 6.2%. The downtown market had the highest YoY vacancy rate growth by climbing 320 bps to 4.3% in Q4 2020. • Downward pressure on rents began to surface this quarter, with lower averages recorded across submarkets relative to Q3. • The proportion of sublease availability compared to total availability across the GTA continued to climb this quarter, resting at 22.7% as of Q4 2020. • Looking forward to 2021, an adjustment in price expectations between landlords and tenants will be imperative to propelling transaction activity.
• Vacancy across the city increased this quarter to 6.2%. The downtown market had the highest YoY vacancy rate growth by climbing 320 bps to 4.3% in Q4 2020.
• Downward pressure on rents began to surface this quarter, with lower averages recorded across submarkets relative to Q3.
• The proportion of sublease availability compared to total availability across the GTA continued to climb this quarter, resting at 22.7% as of Q4 2020.
• Looking forward to 2021, an adjustment in price expectations between landlords and tenants will be imperative to propelling transaction activity.
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Transaction
Highlights
Notable Transactions
Landlord Address Area Market Lease Type
Turner Construction Co. 48 Yonge St 109,402 SF Central Downtown - Financial Core Renewal
Belairdirect Insurance Company 700 University Ave 55,061 SF Central Downtown - Downtown North Headlease
Stoopid Buddy Stoodios 20 Leslie St 27,000 SF Central East - Toronto East Headlease
City of Toronto 1920 Yonge St 25,687 SF Central Midtown - Yonge-Eglinton Extension
Benevity 171 East Liberty Street 12,500 SF Central Downtown - Downtown West Headlease
Her Majesty the Queen in Right
of Canada
135 Queens Plate Drive 10,626 SF Suburban West - Airport East Renewal
Notable Developments
Address – Building Name Class Area Est. Comp. Owner/Developer Building Status
CIBC Square - Tower 1 A 1,484,019 SF Q1 2021 Hines, Ivanhoe Cambridge Under Construction
The Well A 1,000,000 SF Q4 2021 Allied Properties REIT, RioCan REIT Under Construction
T3 Bayside A 524,000 SF Q2 2023 Hines Under Construction
The Shift A 460,000 SF Q4 2021 First Gulf Real Estate Corporation Under Construction
The Permanent A 304,043 SF Q1 2021 Menkes Developments Under Renovation
Waterfront Innovation Centre A 283,000 SF Q4 2021 Menkes Developments Under Construction
360 Oakville Place Dr A 139,000 SF Q1 2021 Creekbank Developments Limited Under Construction
99 Atlantic Avenue A 130,000 SF Q4 2020 Kevric Real Estate Corporation Net New Supply
Notable Investment Transactions
Address Area Purchase Price Purchaser Purchaser Profile
Concorde Corporate Centre 567,619 SF $114,000,000 Fengate Properties Private Investor
2300 Meadowvale Boulevard 242,000 SF $75,700,000 BMO Life Assurance Company Institution
8925 Torbram Road 202,000 SF $48,000,000 QuadReal Property Group Institution
53 Yonge Street 11,557 SF $11,500,000 H&R REIT Public Investor
7330 Goreway Drive 21,667 SF $9,300,000 7330 Goreway Dr Holding Inc. Private Investor
2580 Matheson Boulevard East 22,087 SF $8,225,000 The Christian and Missionary Alliance in Canada User
2902 & 2904 South Sheridan Way 20,800 SF $5,800,000 POSO Investments Corporation Private Investor
4190 - 4120 South Service Road,
4196 & 4208 Morris Drive
34,918 SF $5,175,000 Burlington Commerce Centre Inc. Private Investor
Colliers Canada | GTA Office Market Report | Q4 2020
collierscanada.com/research P.4
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