Too much office space in Toronto
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.