Could Toronto's Office Vacancy Rate Hit Double Digits?
Downtown Toronto's office boom could propel vacancy rates up to 9.6% by 2017, according to a new forecast from Cushman & Wakefield. Two projects opened in 2014, Bremner Tower and RBC Waterpark Place; another, QRC West, arrives this year; and three more deliver in 2016: One York Street (above), Bay Adelaide Centre East and Globe and Mail Centre. And when EY Tower and 130 Queens Quay E follow in 2017, that should cover it, right? Wrong. “Insatiable demand” for new space means “two or more new developments appear to be in the cards,” the report notes, likely nudging vacancy rates higher. Time for owners of older office buildings to fret.