Development/Sales Asking Net Rent Vacancy Net Absorption
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Net Absorption This Quarter 12-Month Absorption 5-Year Annual Average Vacancy This Quarter Year-over-Year Asking Net Rent This Quarter* Year-over-Year *weighted average Development/Sales Under Construction Sale Price (avg.) New Supply Weighted Average Asking Net Rates ($PSF) By Market | Q2 2018 – Q2 2019 $50 AAA AAA Downtown 13% $40 A B C A Midtown 8% $30 B C A GTA N/E -0.2% A A $20 B C B C B C GTA W -0.5% $10 GTA Total 1% $0 Downtown Midtown GTA N/E GTA W GTA Total By Square Feet Leased Q2 2018 – Q2 2019 FIRE | Financial Services, Insurance and Real Estate 30 bps 0 bps 120 bps TAMI | Technology, Advertising, Downtown Midtown GTA N/E Media and Information FIRE & TAMI 1.6% Q2’18 1.3% Q2’18 5.8% Q2’18 represent 57% of HEG | Healthcare, Education and Government all leases in Q2 ACE | Accountants, Consultants, 40 bps 30 bps Engineers GTA W GTA Total Legal 9.0% Q2’18 4.4% Q2’18 Other Vacancy Rate Net Absorption New Supply Vacancy vs. Net Absorption and New Supply Forecast 1,500,000 9.0% 1,300,000 1,100,000 4.1% 3.8% 6.0% 900,000 700,000 Vacancy % 500,000 3.0% 300,000 100,000 0.0% -100,000 Net Absorption Absorption Net Supply / New (SF) -300,000 -500,000 -3.0% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19f Q4'19f Q1'20f Q2'20f Q3'20f Q4'20f Q1'21f Q2'21f Colliers Canada | GTA Office Market Report | Q2 2019 collierscanada.com/research P.2 Market # of of #Buildings Availability Rate Sublease Avail. Asking Net Total Inventory Total Inventory (SF) Vacancy Rate Prop. of Net Absorption (SF) Weighted Avg. Rents ($PSF) Weighted Avg. Asking Gross Rent ($PSF) New Supply (SF) Under Construction (SF) Financial Core All 109 37,685,473 2.2% 4.2% 14.6% -117,894 $36.22 $65.05 0 2,684,201 Downtown East All 74 6,089,628 1.9% 3.2% 48.7% -50,246 $27.66 $49.11 0 1,400,544 Downtown North All 126 21,296,457 0.5% 1.2% 17.0% 28,235 $33.00 $55.04 0 191,439 Downtown South All 21 8,099,345 0.3% 1.7% 5.1% 3,836 $37.45 $63.14 0 2,319,701 Downtown West All 175 18,704,283 0.7% 1.5% 30.5% 482,101 $28.21 $47.17 328,264 1,420,121 Downtown All 505 91,875,186 1.3% 2.7% 18.9% 346,032 $34.79 $61.53 328,264 8,016,006 Yonge - Bloor All 77 11,021,097 1.3% 2.9% 17.5% -5,842 $28.47 $50.67 0 144,977 Yonge - St. Clair All 29 3,251,852 0.9% 2.1% 12.2% 1,000 $22.61 $44.71 0 0 Yonge - Eglinton All 74 6,938,452 1.6% 1.8% 1.7% -634 $17.69 $35.05 0 88,985 Toronto West All 47 2,526,882 1.3% 2.8% 9.9% 1,367 $21.14 $31.40 0 61,837 Midtown All 227 23,738,283 1.3% 2.5% 12.6% -4,109 $24.39 $44.27 0 295,799 Don Mills - Eglinton All 73 6,783,241 4.0% 4.5% 13.0% -914 $12.68 $28.37 0 0 Duncan Mill All 46 3,203,281 6.9% 8.7% 20.3% -35,362 $12.92 $28.80 0 0 Consumers Road All 44 5,754,801 6.9% 9.0% 7.5% 27,891 $14.92 $31.88 0 0 Woodbine/Steeles All 74 7,028,399 5.3% 6.8% 7.0% -22,945 $15.34 $29.50 0 0 Toronto East All 24 1,972,820 4.0% 4.1% 0.0% -29,378 $28.93 $43.57 0 0 Central East All 261 24,742,542 5.4% 6.7% 10.2% -60,708 $15.00 $30.63 0 0 Yorkdale All 38 3,308,364 1.8% 1.9% 0.0% 21,784 $13.57 $35.90 0 0 Dufferin - Finch All 29 2,269,423 1.9% 2.8% 0.0% 1,951 $12.01 $26.35 0 0 North Yonge Corridor All 59 10,700,185 5.3% 8.5% 8.3% 14,602 $21.09 $41.94 0 0 Central North All 126 16,277,972 4.1% 6.3% 7.3% 38,337 $19.93 $40.40 0 0 Vaughan All 82 5,225,868 3.5% 4.8% 15.0% 4,529 $19.81 $31.00 0 394,514 Richmond Hill All 27 1,983,780 0.2% 0.2% 0.0% 5,002 $13.00 $26.75 0 35,804 Hwy 404 - Hwy 407 All 130 10,441,750 4.3% 6.8% 33.3% 33,006 $16.44 $30.20 0 30,000 Markham Town Centre All 39 3,503,267 5.4% 8.3% 20.1% -67,543 $12.34 $22.42 0 0 GTA North All 278 21,154,665 3.9% 5.9% 26.5% -25,006 $15.93 $28.19 0 460,318 Scarborough Town Centre All 95 8,567,118 5.1% 7.7% 29.2% 12,102 $12.44 $29.37 0 0 Pickering - Oshawa All 58 4,859,828 4.6% 5.2% 0.0% 34,036 $12.51 $24.61 0 0 GTA East All 153 13,426,946 4.9% 6.8% 21.1% 46,138 $12.48 $27.65 0 0 GTA North / East All 818 75,602,125 4.6% 6.4% 16.3% -1,239 $15.84 $31.72 0 460,318 Airport Corporate Centre All 82 7,020,539 8.6% 11.8% 17.0% -39,410 $16.08 $31.61 0 191,460 Airport East All 73 5,013,822 14.9% 20.1% 1.6% 40,678 $13.73 $25.57 0 0 Airport West All 72 6,499,179 4.1% 4.2% 10.0% -143,696 $18.13 $32.66 0 0 Brampton All 57 4,377,609 1.6% 1.7% 11.8% 2,240 $15.71 $29.86 0 0 Burlington All 80 4,795,100 6.4% 9.4% 4.7% 46,168 $16.49 $29.63 0 0 Cooksville All 36 2,116,890 5.3% 6.2% 0.0% 30,770 $15.98 $31.84 0 0 Hwy 401 - Hurontario All 62 5,262,979 11.5% 14.8% 19.2% -95,230 $15.42 $29.33 0 0 Hwy 427 - Bloor - Islington All 75 5,867,393 9.4% 10.5% 10.1% 22,880 $18.14 $32.64 0 33,170 Meadowvale All 92 7,952,073 11.9% 13.5% 15.2% -190,238 $18.24 $31.94 0 0 Mississauga City Centre All 35 4,460,549 7.3% 7.6% 6.0% -2,301 $16.97 $34.70 0 0 Oakville All 71 4,257,917 6.6% 8.6% 0.9% 118,416 $18.37 $31.09 0 176,653 Sheridan - Winston All 53 3,778,227 11.6% 13.3% 6.8% 8,777 $19.37 $32.57 0 55,000 GTA West All 788 61,402,277 8.6% 10.5% 10.1% -200,946 $16.76 $30.62 0 456,283 GTA Total All 2,338 252,617,871 4.1% 5.7% 13.6% 139,738 $19.59 $36.39 328,264 9,228,407 Colliers Canada | GTA Office Market Report | Q2 2019 collierscanada.com/research P.3 Notable Lease Transactions Tenant Address Area Market Lease Type TD Bank Group 160 Front Street West 944,158 SF Financial Core Head Lease Freedom Mobile Inc. 16 York Street 112,929 SF Downtown South Head Lease Sinai Health System 700 University Avenue 111,474 SF Downtown North Head Lease Samuel Son & Co. Limited 1900 Iron Oak Way 55,000 SF Sheridan-Winston Head Lease Ipsos Corp. 160 Bloor Street East 48,744 SF Yonge-Bloor Head Lease Medline Canada 5150 Spectrum Way 45,617 SF Airport Corporate Centre Head Lease WeWork 500 Bloor Street West 45,000 SF Yonge-Bloor Head Lease Notable Developments Address – Building Name Class Area Est. Comp. Owner/Developer Building Status 620 King Street West – King Portland Centre A 302,000 SF Q2 2019 Allied / RioCan New Supply 81 Bay Street – CIBC Square I AAA 1,484,019 SF Q2 2020 Ivanhoe Cambridge / Hines Under Construction 160 Front Street West AAA 1,248,549 SF Q4 2022 Cadillac Fairview Under Construction Diamond / Tridel / 410 Front Street West – The Well A 1,067,000 SF Q3 2021 Under Construction RioCan / Allied 40 Temperance Street – Bay Adelaide North A 840,000 SF Q2 2022 Brookfield Under Construction 16 York Street A 800,000 SF Q1 2020 Cadillac Fairview Under Construction 25 Ontario Street – The Shift A 464,500 SF Q4 2021 First Gulf Under Construction 65 King Street East AAA 391,270 SF Q1 2022 Cartterra Under Construction Notable Investment Transactions Address Area Purchase Price Purchaser Purchaser Profile Atrium on Bay 1,079,870 SF $640,000,000 TD Greystone Asset Mgmt., Kingsett Capital Institutional AeroCentre 623,250 SF $163,351,509 Fiera Properties Institutional West Metro Corporate Centre 618,467 SF $42,290,000 Wafra Inc. (25.0% interest share) Institutional 226 & 228 Wyecroft Road 110,000 SF $31,000,000 Nicola Wealth Real Estate Institutional 1045, 1075 & 1155 North Service Road 185,340 SF $30,000,000 Crown Realty Partners Private Investor Commerce West 412,363 SF $29,887,500 Wafra Inc.