TORONTO, ONTARIO--(Marketwired - Feb. 28, 2017) - In its Real Estate Market Research study published today, Newmark Knight Frank Devencore reported that there was a surge of tenant activity in Toronto West in 4Q16, when approximately 615,000 square feet of office space was absorbed, marking Q4 as the most active quarter of the year. At the end of the year, the vacancy rate was 15.5% for all office classes in Toronto West, down from 17.0% in mid-2016.
The Newmark Knight Frank Devencore report notes that part of the reason for the high vacancy and rates is the amount of new space that has been delivered to the Toronto West office market over the last 24 months--in excess of 685,000 square feet.
Activity was particularly pronounced in the Airport Corporate Centre (ACC) submarket in 2016, when approximately 235,000 square feet of office space was absorbed.
"The ACC has seen a resurgence of tenant interest," said Rob Renaud, Managing Principal/Broker of Record at Newmark Knight Frank Devencore's Toronto West office1. "The ACC has many advantages that tenants seek. Several new LEED buildings have retail amenities within close walking distance; as well, there has been improved access to public transit, all of which are draws for corporate tenants and their millennial employees."
In the Meadowvale submarket, approximately 920,000 square feet was vacant at year-end, currently marking this submarket as the most challenged in Toronto West.
"Notwithstanding that there may be one or two mid-size office lease transactions announced shortly, some of the marquis buildings in Meadowvale have been facing headwinds," Mr. Renaud said. "While over the last few years Meadowvale became the favoured submarket for major tenants looking to upgrade their office space, more recently the ACC has become a hotbed of activity for many corporate moves in Toronto West due to some of the key investments that have been made."
Over the next 18 months the pace of development activity in Toronto West will slow and very little new speculative space is scheduled for construction.
"Ample tenant opportunities exist, especially in some of the softer submarkets," Mr. Renaud said. "There are a number of landlords and developers willing to work with tenants to find creative ways to add value to leasing transactions, so there are some very good opportunities available in both new and older buildings."
To read the complete market study, please go to: http://english.devencorenkf.com/home/market-information.aspx?d=728.
About Newmark Knight Frank Devencore
As part of Newmark Grubb Knight Frank, one of the world's leading commercial real estate advisory firms, Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage, exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF's 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. NGKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.
||Devencore Realties Corporation
||(Toronto West) Ltd., Brokerage
||1 Eva Road, Suite 409
||Toronto, Ontario M9C 4Z5