Office Market Waits On New Development

“Anemic and sporadic demand” continues to characterize the GTA office market as it prepares for the onset of new development, according to an Avison Young report on Q1 2014. AY’s Bill Argeropoulos says that’s now five consecutive quarters of negative absorption. “Clearly, the rate at which the market has been expanding over the past 10 years—and especially during the development cycle of the past five years—indicates the need for a correction, and the present state of the market should be seen as such.” Despite the somewhat gloomy figures to date, numerous tenants of all sizes are poised to take advantage of the opportunity to secure premises in the more exposed assets, perhaps at more favourable rates—with the flight to quality becoming ever more apparent, Bill says. The demise of national law firm Heenan Blaikie—returning 137k SF of space in the West Tower of the Bay-Adelaide Centre—was one of the events that marked the quarter.

Continue reading this story with a free account

Log in or register
Related Topics: Bill Argeropoulos , West Tower
Sign up for more articles like this
Subscribe to Bisnow's Toronto Newsletters
Related Stories

Activist Investor Buys Stake In Empire State Building Owner

San Francisco Office Market Climbs, Fueling Demand For Large Blocks, Luxury Space

Affinius Relinquishes Big Office Building Next To Capital One Arena

CRE Finance Sentiment Index Falls To 3-Year Low As Economic Fears Mount

RN3 Enters Dutch Logistics Market With DHL Sale-Leaseback Deal

One Thomas Circle, The Elevated Workplace For The Way D.C. Works

Hedge Fund Breaks NYC Record With $375-Per-SF Office Lease

Renewals Dominate In Years-Low Office Leasing Quarter

University City Office Market Improves Despite Slow Quarter In Philly

High-Flying Midtown Office Market Back To Pre-Pandemic Health

KKR's Chris Lee On Finding Opportunities As CRE Begins A 'Regime Change'

Austin's Office Slump Is Fueling Mixed‑Use Projects