July 30, 2010
It hasn’t been the greatest of summers for downtown Toronto landlords.
In the first half of 2010 office rental vacancies in the downtown core hit double digits for the first time in five years. This is according to a report by Avison Young, Canada’s largest independently owned commercial real-estate company.
The vacancy rate in the downtown core rose to 10.3% from 7.6% this time last year. Downtown Toronto provides 70 million of the city’s 170 million total square feet of office space.
Fortunately, Avison Young says the tide is turning as strengthening business confidence is leading a surge in recent downtown leasing activity.
“The increase in business confidence is certainly evident in the number of tenant leasing assignments circulating in the marketplace,” says Bill Argeropoulos, Director of Research for Avison Young. “Our research shows a notable jump in tenant activity in Downtown Toronto from a year ago to now more than 3 million square feet (msf).”