Could Toronto’s commercial real estate sector be in danger from over-supply? Figures suggest that by 2017 the vacancy rate for offices in the city could be at levels not seen since 2003 with more than 10 per cent of units vacant.
Avison Young Canada says that doesn’t include a large amount of new construction which is due to be completed in 2017. Experts say that those who are financing many of the new projects and also those who own older buildings are likely to suffer the most if vacancy rates continue on the current trend.
As supply outstrips demand, commercial rents are also set to slide adding more pressure on landlords.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: