With an increase in available sublet space, close to 1.0 million SF and therefore accounting for approximately 22.3% of total vacant space, sublets will likely continue to increase. Looking back through history, this increase in overall vacant space in the GTA market is considered very significant.
New Supply in 2009 is set to be a record breaking year in terms with approximately three-quarters of the 6.1 million SF currently under construction set for completion this year.
The vacancy rate across the GTA has increased from 4.9% in the fourth quarter of 2008 to 5.7% by the close of the first quarter 2009. Not surprisingly, the quoted asking net rental rate was up only $0.02 psf to
$21.52 psf.
Overall Office Market Statistics
| Submarket | Vacancy Rate | Net Rental Rate ($ psf/yr) |
| Downtown | 5.0% | $23.54 |
| Midtown | 8.1% | $16.80 |
| East | 12.6% | $12.93 |
| North | 6.5% | $16.58 |
| West | 9.1% | $14.82 |
| GTA | 7.7% | $16.93 |
| *Additional Rent amounts not included. | ||
The Greater Toronto Area (GTA) industrial market is experiencing a period of structural adjustment in overall market fundamentals as conditions in this immediate market place will remain challenging in the short run.
Opportunities in this market sector are increasing in abundance and good quality industrial space is available at discounted rents. For instance, the average asking rental rate declined to $5.01 per square foot from $5.22 per square foot from the previous quarter due to an increasing amount of available space and buildings with similar specifications are competing for strong tenancies.
Asking sale prices have dropped for properties that have been on the market for multiple quarters and this has been reflected in an overall average decline by $2.76 per square foot from the previous quarter.
Overall, the supply of industrial space under construction in the GTA continues to decline in response to the lack of demand for industrial space and will continue to do so until vacancy and rental rates stabilize to historical levels.
Overall Industrial Market Statistics
| Submarket | Vacancy Rate | Net Rental Rate ($ psf/yr) |
| Downtown | 5.7% | $4.52 |
| Midtown | N/A | N/A |
| East | 4.3% | $5.18 |
| North | 7.7% | $5.27 |
| West | 8.2% | $5.21 |
| GTA | 6.9% | $5.06 |
| *Additional Rent amounts not included. | ||
