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City crows about low office vacancy rates

The city's quite enthusiastic about the latest office space numbers.

According to the latest so-called Economic Dashboard, a run-down of the city's financial indicators, despite large growth in office space over the past three years, vacancy rates are actually going down.

The report, released last week, suggests that office vacancy rates are at 5.4 per cent for the City of Toronto, and just 4.5 per cent for the downtown core. Scarborough's not doing so well, though, with 11 per cent office vacancy, compared to the 905 area, which is averaging 9.6 per cent.

This increase in occupancy is happening at the same time as the market is greatly expanding. The Bay-Adelaide opened in 2009, the same year the RBC-Dexia tower received its first occupants. In 2010, the Telus tower opened, and 18 York Street opened this year.

"There have been a few high profile moves downtown," says Peter Viducis, manager of the Economic and Cultural Research department of the city's Economic Development and Cultural Division, referring to things like Coca-Cola's imminent move into 333 King Street East, "but most of the growth appears to be organic. Firms that need to expand are choosing to do so downtown."

Though city officials seem to be optimistic, it remains to be seen whether these occupancy numbers will prove sustainable in light of even more development in the near future. The second phases of both the Bay-Adelaide and the MaRS Centre are opening soon, as is 120 Bremner and 85 Harbour. The  new Globe and Mail tower will be ready by 2015.

Writer: Bert Archer
Source: Peter Viducis

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