Avison Young releases its Q4 2010 Greater Toronto Area West Office
TORONTO, Feb. 8 /CNW/ - The Greater Toronto Area (GTA) West office
market finished 2010 in better shape than it started, with availability
and vacancy rates ending their upward trend and, instead, beginning to
decline. Although the availability and vacancy rates are still higher
than one year ago, they have begun to edge downward thanks to an uptick
in leasing activity - positive signs for the recovery taking place in
These are some of the key trends noted in Avison Young's Q4 2010 Greater Toronto Area West Office Market Report, released today.
According to the report, the vacancy rate (physically unoccupied space)
in the GTA West market crept downwards by 10 basis points (bps) over
the course of the fourth quarter to close the year at 12.9%. This rate
is 240 bps higher compared with the previous year's figure, but
nevertheless represents a decline from the preceding two quarters. The
availability rate (space marketed for lease), meanwhile, saw a more
substantial drop of 100 bps in the last quarter of the year, ending
2010 at 14.3%; however, this level exceeds last year's mark by 210 bps.
"When you strip out the amount of sublet office space, the market is in
much better shape, displaying a landlord direct availability rate just
shy of 11%," notes Bill Argeropoulos, Vice-President and Director of Research (Canada) for Avison Young.
"Sublet space is one metric that reflects the overall health of a
market. After peaking at 1.5 million square feet (msf) mid-way through
2010, this figure is on the verge of falling below 1 msf for the first
time in more than a year - an encouraging sign."
One of the most established and prestigious suburban office nodes, the
Airport Corporate Centre, continues to display an overall availability
rate of almost 24%. In contrast, the Meadowvale market, which witnessed
a considerable amount of new office development during the economic
downturn, is in the 11% range.
The report goes on to note that elevated availability and vacancy rates
and flagging demand have held rental rates relatively in check. The
average asking net rental rate for all asset classes in the GTA West
market rose only marginally through 2010, ending the year at $14.24 per
"Induced by attractive rental rates and new product opportunities,
tenants in the GTA West office market are definitely creating increased
velocity," adds Martin Dockrill, Avison Young Principal and Managing Director of the Mississauga
office. "Save for the Airport Corporate Centre, which has a significant
tenant base still impacted by a slow U.S. recovery, this may be the
beginning of the end of the tenant's market in the GTA West."
Founded in 1978, Avison Young is Canada's largest independently-owned
commercial real estate services company and the only national,
Canadian-owned, principal-managed real estate brokerage firm in the
country. Headquartered in Toronto, Ontario and ranked among Canada's
leading national commercial real estate organizations, Avison Young is
a full-service commercial real estate company comprising more than 700
real estate professionals in 23 offices across Canada and in the U.S.
The company provides value-added, client-centric investment sales,
leasing, advisory, management, financing and mortgage placement
services to owners and occupiers of office, retail, industrial and
Editors/Real Estate Reporters
∙ Please click here to view Avison Young's Q4 2010 Greater Toronto Area
West Office Market Report:
SOURCE Avison Young (Canada) Inc.
For further information:
For further info/comment/photos:
- Bill Argeropoulos, Vice-President and Director of Research (Canada), Avison Young: (416) 673-4029,firstname.lastname@example.org
- Martin Dockrill, Principal and Managing Director, Mississauga, Avison Young: (905) 283-2333
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