CB Richard Ellis Ltd. Brokerage has released it's Q4 2011 Toronto Office Market Report, and it's not looking so hot for UrbanToronto's search for new office space; For the 7th consecutive quarter we've seen a decrease in office vacancy rates, now down to 5.3% from the previous low of 5.5%.
While not the best for those currently on the hunt for space, it's great news for Toronto's economy. Businesses continue to be attracted to the downtown core regardless of the darker global economic cloud hovering above us. The report states that if the larger, 'historic' office buildings (First Canadian Place, TD Centre and Commerce Court West) are removed, vacancy would be at 3%. The report conclude by hinting at a new development in the works for Bremner Boulevard to be announced in the coming weeks with a "sizable anchor tenant.'"
This is also reassuring for those who doubt the practicality of the new office buildings currently under construction. Oxford Properties announced last year the construction of RBC WaterPark Place, comprising 930,000 square feet. Great West Life is working on the Southcore Financial Centre with two office towers of a combined 1.4 million square feet as well as the new Delta Chelsea hotel. Smaller projects, such as the Queen Richmond Centre West by Allied Properties REIT, the Globe and Mail offices and the redevelopment of the former Toronto Sun buidling are all signs of a healthy economy which can offer a variety of spaces for a growing employment sector in the downtown core. Here's to the continued success of Toronto as an economic hub, and the variety of factors that make it the attractive city that it is!