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Toronto’s core heats up in time for summer - Financial district vacancy rates continue to nosedive
14 Jun, 2006, Toronto
Toronto’s financial core remained a hot spot in the GTA office market in the second quarter of 2006 demonstrating Canada’s resilient economic health and the strength of the city’s draw as a prestigious location among leading corporations. While overall GTA vacancy remained steady during the quarter – barely budging from 7.6% to 7.3% – vacancy continued to tighten in the head-office core market, dipping to a low 5.7% from 6.8% recorded in the previous quarter, according to Cushman & Wakefield LePage, GTA second quarter results released today.
Class A space in Toronto’s premium office towers especially did well this quarter; absorption increased by 30% over the first quarter, with more than 309,000 square feet being absorbed by expanding and new tenants. Combined A-class vacancy dropped from 6.0% in the first quarter to a low 4.7% at the close of this quarter.
“Our major office buildings are reaching occupancy levels not seen since the last expansionary period in 2000,” said Paul Morse, senior vice president, office leasing, Cushman & Wakefield LePage. “This low vacancy supports the wisdom behind new construction announcements, as options are quickly disappearing for companies looking to expand in the core.”
Added Morse: “We’re seeing growth across the board in financial, consulting and professional services. These major sectors are expanding again after a period of consolidation, contraction and cost control.Summer is traditionally a slower period but market activity remains brisk and we don’t see any signs of it letting up.”
Overall, with office vacancy remaining low, well under 10% in most markets, thegood times rolled during the second quarter across the GTA.
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