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| Office Space For Lease In Toronto 2010 |
By:
Steve Kernick |
|
The commercial real estate market in Toronto has not recovered from the recession times and has come a long way. In fact, as entrepreneurs have started enhancing their business and are in a mood for expansion they are keen to take office space for lease all over Canada. However, there is a twist to the tale. Without doubt 2010 could be a leaser’s market in Toronto. 2009 results show that the market for office space in Toronto has declined. Further, these declines are expected to continue throughout 2010. But then among all this there’s a good sign certainly. The decline in demand has led to a fall in office space rent as well. The high rented offices are no more profitable for businesses. Thus, business owners are in the search of office for lease at lower price.
The anticipated asking rent for Toronto office space is expected to continue to fall until the end of 2010. The cause for this decline has been a combination of events. Firstly, the economic recession has squeezed many organizations and restricted credit. Without available credit fewer companies are able to afford to pay high rent; and in many instances, even to exist. The second reason for the decline was an increase in new office buildings, as was highlighted by Colliers International. Much of the new office space was B and C grade space, constructed primarily in Toronto’s downtown core. 16 new buildings were constructed in 2009 contributing nearly 4.7million new square footage of office space. Declining demand and increasing supply are putting downward pressure on asking rents. It is forecasted that average office rent could fall to $16.00/SF by year’s end; from $16.20/SF ending 2009 and $17.83/SF ending 2008. These figures thus state that price is falling lately.
Increased supply and decreased demand have also affected Toronto’s sublease market for office space. According to Colliers International, since Q4/2008, sublease vacancy has increased by 48%. This should not come as much of a surprise. The increase in office space for lease increases the total quantity of space available; contributing to downward pressure on prices. Businesses looking to spread their costs and make use of unused space are expected to continue feeling the pinch. It is anticipated that vacancy rates in Toronto’s office sublease market could continue to rise to 6.9% by the end of 2010; it is currently 6.1%. All of this bodes well for those looking to acquire space. If you are one among them start looking for an affordable office space that fits in all your employees and other essentials.
Falling office prices in both the sublease and lease markets of Toronto could bring much needed comfort to those looking to expand. Better prices and wider selection is all consumers ever ask for. Thus, if you are in search of office space for lease this is time you must look for one. Expand your business and get an office at a low rent. You will certainly get lucky to find a good office space at a much lesser price.
ForSaleForLease publishes thousands of commercial property listings including Office space, Industrial space and businesses for sale. Please visit http://www.forsaleforlease.ca/buyonline.php today.
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