Appraisals Warned About Lease Life On MaRS

New documents in the form of government-released appraisals show the province was cautioned that over-supply in the medical-office market could create leasing issues for the MaRS office tower at College and University. In September Premier Kathleen Wynne announced a $309M investment in the complex ($224M to cover the original loan, which MaRS could no longer pay interest on; and $65M to buy out developer Alexandria Real Estate). But two appraisals of MaRS from CBRE and Altus Group warned new office/lab facilities for nearby Hospital for Sick Children and St. Michael’s Hospital might put “downward pressure on rental rates in the district.” So far two tenants, Public Health Ontario and the Ontario Institute for Cancer Research, have signed deals at MaRS, taking 31% of available space.

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