Judging by the rate at which office space is being snapped up in the Greater Toronto area, business appears to be picking up in the Toronto local commercial real estate market.
According to Avison Young’s office market report, the Greater Toronto area West market saw a steady decline in office vacancies in the fourth quarter as more and more businesses took advantage of office vacancies.
“Induced by attractive rental rates and new product opportunities, tenants in the GTA West office market are definitely creating increased velocity,” said Martin Dockrill, principal and managing director for Avison Young’s Mississauga office.
While the vacancy rates are higher this year compared to last year, officials at Avison Young say the downward trend of vacancy rates bodes well for Toronto’s commercial real estate market. It’s helped by the fact that rental rates have held steady at $14.24 per square foot, leaving renters with enough money to take advantage of storage units instead of cluttering their offices with excess files.
According to a report from CB Richard Ellis, the commercial real estate market was up throughout Canada in 2010, but Toronto took the most significant strides forward, as transactions rose 93 percent compared to 2009.