Commercial brokers are busy in 2015, but as one recent report reveals, not all real estate in that sector is created equal.
“The attractiveness of renovated warehouse space turned into chic office space is especially high amongst creative agencies and technology companies, who attract younger employees,” said John Arnoldi, Executive Managing Director, Toronto Brokerage, Colliers International in an official release. “Brick and Beam space, primarily found in the Entertainment District and Downtown West, is commanding gross rents in the $40 range, attesting to the appeal of these unique buildings.”
The Toronto market is a story of disparate trends, with Class “A” downtown net rents costing $16-$20 more per square foot and grossing approximately $20-$30 more in rent than space outside the core.
“Despite 2.7 million square feet of office space coming on-stream downtown during the last calendar year, the Greater Toronto Market experienced 432,300 square feet of positive absorption in Q1-2015, occurring primarily in the downtown core,” an official release from Colliers states. “Downtown vacancy rates declined to just 2.7 per cent in Q1 and will likely remain low throughout 2015, because of high demand for space and a limited new supply coming to market.”
This new data arms mortgage brokers with information to better position themselves as expert advisors to property investors. Those buyers are looking for guidance outside of the strict confines of the mortgage transaction as market conditions get tougher to navigate.