While published rents appear to be holding up, tenants and commercial real estate brokers say the price is much lower
With most workers only coming into the office two or three days a week, many employers no longer want as much space. Tenants are either reducing their space when they renew leases and putting some on the sublet market, or giving up their space all together. And new office towers that were years in the making are now being completed, flooding Toronto’s core with even more unused offices.
Mintz was able to negotiate a deal within four weeks of announcing its expansion to Toronto. That would have been unheard of in 2019. According to CoStar, the average asking rent across the market in downtown Toronto has remained flat over the past four years at $45 a square foot. CoStar, like other commercial real estate firms, bases its asking rents on the data it collects from landlords.
Ms. Ross said she could not put a number on the NER because there were too many variables. Most other commercial real estate firms would not disclose the information. Avison, for example, said it is proprietary information, according to its spokesperson. A CBRE Group spokesperson said NER data is “very deal-specific and subjective” and “not consistent” in terms of what conditions influence the NER for any particular transaction.
“There’s no question that the existing landlords that have space have to compete with the sublet market in order to attract tenants,” said Mr. Krawitz.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Toronto pumps brakes on bid to legalize e-scooters, new report expected in 2024 | CBC NewsThe future of e-scooters in Toronto won't be decided until early next year after city councillors opted to pump the brakes on the latest bid to study legalizing the vehicles.
Read more »
The fascinating history behind the 'strawberry box' houses that shaped TorontoIt may seem unimaginable amid Toronto's cutthroat 21st-century real estate market, but there was a time in the not-too-distant past when single-fam...
Read more »
Huge Toronto development to replace almost entire street of small housesA block of single-family homes in Toronto could soon be entirely erased and transformed into a new two-tower condo complex. A mid-July development ...
Read more »
Striking Toronto-area Metro workers speak out: ‘This is definitely about money’ | Globalnews.caSpeaking outside a shuttered store on Danforth Avenue in Toronto, union leaders said some staff couldn't afford to shop at their own stores and are forced to use food banks.
Read more »
Toronto Blue Jays place Canadian closer Jordan Romano on 15-day injured listToronto Blue Jays closer Jordan Romano has been placed on the 15-day injured list, the club announced Saturday.
Read more »