The vacancy rate in the Greater Toronto Area (GTA) increased to 8.5% in Q2 2013 from 8.2% at the end of Q1 2013.
25 office buildings, representing 7.1 million sq ft of new inventory are under construction. The majority of new construction is concentrated in the Downtown and GTA West markets.
Oxford Properties started construction on a new 899,064 square foot, LEED Platinum office tower at 100 Adelaide Street West – Richmond Adelaide Centre Phase III. The building is 45% pre-leased to Ernst & Young and the TMX Group, with expected completion in Q2 2017. The 40 storey tower will become part of the larger Richmond Adelaide Centre with a direct connection to the PATH.
Six buildings reached completion in Q2 2013. Four buildings are located within the GTA West market, totalling 342,067 sq ft, one in the GTA East at 55 Idema Road (36,720 sq ft) and one located in the GTA North at 7191 Yonge Street (126,000 sq ft).
In the GTA 80.8% of vacant office space was for lease, whereas, 19.2% was available for sublease. The GTA West possessed the greatest amount of vacant space for lease (5.56 million sq ft) while Midtown had the least amount of vacant options (919,706 sq ft).
Source : DTZ (Groupe UGL)