entrenpenure and workers are helping drive demand for office space away from the suburbs and back into Toronto’s core, a new report says.
Also fuelling the increasing demand, with the interest in new environmentally sound office towers, so strong that the Vacancy rate for downtown office space fell to 5.1 per cent in Q3
Toronto isn’t alone, according to commercial real estate brokerage Cushman & Wakefield’s Occupier Insight Report released Wednesday, Major U.S. cities such as San Francisco, Chicago, New York, Boston and even downtown Los Angeles are also seeing a significant shift from the suburbs, although their office vacancy rates are still more than double that of Toronto’s. Only Vancouver has a lower office vacancy rate than Toronto, at 3.7 per cent, but largely because of limited building activity
Thanks to smart urban planning which has opened the doors to a younger, educated and plugged-in population that prefers to live, work and play close to home, Major downtown office markets in North America are thriving in the face of turbulent global economic conditions , says the report.
That’s provided an instant workforce for the 4.5 million square feet of office space has been added to the downtown core in the last two years alone, with more coming especially in the waterfront area.
Compounding to the unprecedented demand in Toronto is boom in the condominim market, with some 70,000 new units built in or close to the downtown core in the last five years, with another 17,000 that are under construction or due to open by year’s end.
Much of the demand for downtown Toronto space has come from the financial sector, which is increasingly expanding into the Railway Lands south of Front St., a raft of companies opting for the core, such as Coca-Cola, Google, SNC-Lavalin, as a way to cut commutes and be close to the workforce of the future,the report notes.
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