As reported in the Vancouver Sun, When compared to their North American office market peers such as San Francisco, Boston, Miami and Washington D.C., developers in Toronto are building far more office space these days, but they’re also facing incredibly high demand for that space.
“We’re still playing catch up,” said Daniel Holmes, a senior managing director with Colliers International in Toronto.
“If you look at Manhattan, Chicago, Washington, San Francisco, Boston, Pittsburgh, Atlanta, Miami (and) Phoenix as all major central business districts within North America, Toronto has the lowest vacancy rate of all of them,” he told Postmedia.
Toronto’s office vacancy is about 1 per cent.
San Francisco — with its overall office inventory of about 93.5 million square feet — has roughly the same inventory as Toronto (at 91.3 million square feet), but the Northern California centre is facing an overall office vacancy of about 5 per cent, according to Colliers.
In an attempt to make up ground on the critically-low vacancy rate, developers in the GTA have about 9.4 million square feet of new office projects under way, Holmes said.
The majority of that new office product will complete next year or the year after, said Michael Rowe, an analyst also with Colliers in Toronto.
Toronto’s recent notable waves of office construction were 2013-2014 and 2016-17, he said. Both cycles included a “handful” of new office buildings. This wave is dramatically different, he said.
“We’re now looking at 10 to 15 developments (overall),” Rowe said. “That’s not including the ones that will potentially kick off as well.”
Below are the five largest office projects that are either under construction or recently completed, according to data provided by Colliers International. (And here is a list of Canada’s 5 largest (non-Toronto) office projects under construction.)
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