Toronto office space set for record high in 2014
Toronto will see more office space come onto market than any other American city in 2014, according to a recent report by Cushman and Wakefield, the world’s largest commercial real estate consultancy.
More than 1.59m sq ft of Grade-A office space will be added to the city’s commercial property market in 2014, as developers look to capitalise on major company residencies, such as Google Inc. and low borrowing costs within the city.
Toronto’s office markets will trump New York and Mexico City for forthcoming office space developments in 2014, fuelled by investments sourced from real estate and pension funds, as well as attractive borrowing costs, lower than 2007 levels.
Rental rates in the city have escalated to record levels, as unbaiting office demand in the city has grown. In December 2012, a record $750 per sq ft was waged for office space in the Brookfield Place-TD Canada Trust Tower by a group of pension funds.
Pierre Bergevin, chief executive officer of Cushman & Wakefield in Canada commented: “It’s expensive right now and this kind of office space should command a premium for the next few years until much more supply comes onto the market.”
Toronto is home to its country's five biggest financiers, with their total equity holdings covering 80% of the nation’s banking assets. According to the reports data, the city currently has highest amount of high rise buildings under construction in the world, and the second largest financial sector in North America.