The record low vacancy rate for offices in downtown Toronto is providing an opportunity for speculative developers.
Carttera Private Equities Inc. and exclusive listing agents CBRE have announced that construction will begin on a 400,000 square feet project at 65 King East, continuing the eastern expansion of Toronto’s financial district.
“Toronto has had the lowest downtown office vacancy rate in North America for almost two years, which caused net average class A asking rents to increase by over 10% last year. Record low vacancy, coupled with rising rents, has made it possible for well capitalized developers to launch speculative office developments. With space in such short supply, speed to market in delivering new office product has become even more essential,” commented Jeff Friedman, Executive Vice President at CBRE.
The development is expected to be completed by Q4 2020.
Toronto office environment is changing
Werner Dietl, Executive Vice President and Regional Managing Director GTA at CBRE, noted that office space is evolving in Toronto.
“The office is no longer a place to meet your colleagues and complete your tasks, but has adapted to meet the needs of companies in today’s business climate,” he said. “It is now a reflection of your company’s brand and culture and has become a powerful tool in the attraction and retention of talent.”
He added that the office experience should focus on workplace wellness as “the next frontier” of office design and noted that the development will “provide outdoor space, natural light, panoramic views and fresh air that keep employees energized and engaged throughout the workday.”
