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west  时间:2021-01-25  阅读:()
Partnership.
Performance.
avisonyoung.
com15.
6%TorontoWestavailabilityrate,vs.
vacancyrateof12.
2%TheTorontoWestofficeleasingmarketmanagedtopostpositive,butmodestthird-quarter2018results–theonlyGreaterTorontoArea(GTA)suburbanofficemarkettoaccomplishthisfeat.
Thoughavailabilityandvacancyremainedindoubledigits,thedevelopmentpipelinewashealthy,whileontheinvestmentfront,anumberofkeyassetschangedhandsorcametomarketforsale.
Ofthe17officenodesthatcomprisetheTorontoWestmarket,12registerednetpositiveabsorptionduringthequarter.
NetabsorptionacrossTorontoWestduringthequarterwasnearly19,000squarefeet(sf),bringingtheyear-to-datetotalto233,000sf–atestamenttothestrongleasingactivitythatcontinuesintheregion.
Someofthemarket'sbetter-performingofficenodesduringthethirdquarterincludedHeartland,withmorethan124,000sfofnetpositiveabsorption,andMississaugaCityCentre(MCC)withmorethan52,000sf.
ContributingtothesuccessofthesenodeswereSerco,whichtookoccupancyofcloseto22,000sfat255LongsideDr.
inHeartland,andPaceSecurities,whichmovedinto12,900sfofspaceatSussexCentreintheMCC.
Elsewhere,BioscriptPharmacytookpossessionof15,100sfat1393NorthServiceRd.
E.
inOakville.
ThishelpedpushOakville'sthird-quarterabsorptionintopositiveterritory,forayear-to-datetotalof58,200sf.
TheMeadowvaleofficenodewashometothelargestleasetransactionofthethirdquarterwithPurolator's89,000-sfdealatCarttera's2727MeadowpineBlvd.
Thiscontributedtoa260-basis-point(bps)decreaseinMeadowvale'savailabilityrate,whichfinishedthequarterat13.
9%.
Burlington,anothermajorofficenodeinMarketOverviewThirdQuarter2018/OfficeMarketReportTorontoWestMarketFacts124,000sfAbsorptioninHeartlandduringthethirdquarter37Buildingswithmorethan50,000sfofavailablespaceinTorontoWest,vs.
43oneyearago$18.
94psfAveragedirectnetaskingrentalrateinOakvillePartnership.
Performance.
avisonyoung.
comTorontoWestOccupancyCosts-AllClassesTorontoWestThirdQuarter2018/OfficeMarketReportNetAskingRent(Avg.
$psf)AdditionalCosts(Avg.
$psf)AirportCorpCtrAirportEastAirportNorthAirportWestBloorandIslingtonBramptonBurlingtonCooksvilleDixieandEglintonEtobicokeNorthEtobicokeSouthHeartlandHighway427CorridorMeadowvaleMississaugaCityCtrOakvilleSheridan13.
9%OverallavailabilityrateinMeadowvale15ClassAbuildingsinTorontoWestwithlargestcontiguousavailableareagreaterthan50,000sf$17.
48AverageaskingnetrentpsfinMississaugaCityCentreTorontoWestOverall$0$5$10$15$20$25$30$35$40$450%2%4%6%8%10%12%14%16%18%20%2014201520162017YTDQ3'18VacancyRateAvailabilityRate-600-400-20002004006008001,0001,2001,4002014201520162017YTDQ3'18sf(thousands)05001,0001,5002,0002,5002014201520162017YTDQ3'18sf(thousands)CompletionsUnderConstructionThirdQuarter2018/OfficeMarketReportTorontoWestTorontoWestOverallAvailability&VacancyTrendsTorontoWestOverallAbsorptionTrendsTorontoWestOverallNewSupplyTrendsOfthe17officenodesthatcomprisetheTorontoWestmarket,12registerednetpositiveabsorptionduringthethirdquarter.
TorontoWest,registereda110-bpsdeclineinitsavailabilityratequarter-over-quartertofinishat14.
6%.
OthernotableleasetransactionsthatcontributedtothesefallingavailabilityratesincludedMascoleasing18,000sfat6990CreditviewDr.
inMeadowvale,andAlignedCapitalDistributionInc.
finalizingadealforcloseto16,200sfat1001ChamplainAve.
inBurlington.
Elsewhere,Jonviewinkedadealfor37,000sfatManulife'sDundasKiplingCentreinEtobicokeSouth.
AsthisisoneofthesmallerofficenodesinTorontoWest,thenode'savailabilitydeclinedfrom23.
3%to14.
2%quarter-over-quarter–thelargestdeclineinavailabilityofanynodeduringthequarter.
Overall,theavailabilityratefortheTorontoWestofficemarketincreasedmodestlyinthethirdquarter,up20bpsfromtheendofthesecondquarterto15.
6%.
However,overallvacancysits340bpslower,closingthequarterat12.
2%.
Thedevelopmentpipelineremainsrobustwith638,000sf(28%preleased)underconstructionduringthird-quarter2018–largelyconcentratedinOakvilleandtheAirportCorporateCentre(ACC).
Newsupplydeliverieswerelimitedtojustonebuilding–1415JoshuasCreekDr.
,inOakville,whichadded89,600sfofclassAspacetothemarketplace.
Inall,429,000sfofnewofficespacehasbeencompletedthroughthefirstninemonthsof2018,upfrom170,000sfdeliveredduringthesameperiodin2017.
OakvillecontinuestobeahotbedofactivityintheTorontoWestofficemarketwithmorethan921,000sfofnewsupplyhavingbeencompletedoverthepastfiveyears–themostamongTorontoWestofficenodes.
Oakville'stotalisrivalledonlybytheHeartlandofficesubmarket,wheremorethan833,000sfofnewofficeproducthasbeenaddedinthesametimeframe.
Inotherdevelopmentnews,KingSettCapitalannouncedplanstoredevelopitsrebrandedofficecomplex"TheLink"(formerlyknownastheValhallaExecutiveCentre)inEtobicoke.
Planscallfortheconstructionoffourresidentialtowerswith1,100suitesanda9,000-sfretailcomponentinoneofthetowers.
ThiswouldultimatelyremovethreeclassBofficetowersrepresenting301,000sffromtheEtobicokeofficenode.
OccupancycostsintheTorontoWestofficemarketsawminimalchangesquarter-over-quarterastheaverageaskingnetrentalratereached$16.
00persquarefoot(psf)–upfrom$15.
34psfoneyearearlier.
AirportNorthremainsthemostaffordablealternativewithaverageaskingnetrentalratesstaticquarter-over-quarterat$9.
38psf,whileBloorandIslingtoncontinuestobethemostexpensiveoptionat$19.
25psf.
OfthemajorofficesubmarketsinTorontoWest,Oakvilleisstillthehighest-priced,withanaverageaskingrateof$18.
94psf–anincreaseof$0.
35psfcomparedwiththesecondquarter,and$0.
50psfyear-over-year.
Thisisnosurprise,giventheabundanceofnewclassAofficeinventorybeingdeliveredinOakville.
Investorinterestremainedstrongasmorethan$315millionworthofofficetradeswererecordedinTorontoWest.
ThemostnotabletransactionofthequarterwasKingSettCapital'ssaleofanofficebuildingportfoliotoGreaterTorontoAirportsAuthority(GTAA)for$143million,inpreparationforGTAA'splannedPearsonTransitCentre.
InvestmentactivityinthisarealookssettocontinueasHOOPPhasrecentlyputitssix-building,623,000-sfAeroCentrecampus,locatedintheACC,onthemarket.
Etobicoke,whichispredominantlyrecognizedasanindustrialmarket,alsosawitsfairshareofsignificantofficebuildingsalesduringthethirdquarter,asCrownRealtyPartnerspurchasedthePearsonCorporateCentrefor$63.
5millionfromBentallKennedy,andMontezCorp.
acquired1243IslingtonAve.
for$40.
4millionfromjoint-ventureownersCanderelandKingSettCapital.
Thesesalesrepresentthefourth-andfifth-largestofficesalesintheEtobicokesubmarketduringthepastfiveyears.
Headingintothefourthquarterof2018,theTorontoWestofficemarketisprojectedtoremainactiveasseverallargeofficetenantsarelookingforspaceinthewestend,andanumberofnewclassAofficebuildingsaresettobecompleted.
ThirdQuarter2018/OfficeMarketReportTorontoWestavisonyoung.
com2018AvisonYoungCommercialRealEstate(Ontario)Inc.
,Brokerage.
E.
&O.
E.
:Theinformationcontainedhereinwasobtainedfromsourceswhichwedeemreliableand,whilethoughttobecorrect,isnotguaranteedbyAvisonYoung.
Acknowledgment:Dataforgraphs,chartsandtablesusedinthisreportaresourcedfromAvisonYoungandAltusInSite.
SomeofthedatainthisreporthasbeengatheredfromthirdpartysourcesandhasnotbeenindependentlyverifiedbyAvisonYoung.
AvisonYoungmakesnowarrantiesorrepresentationsastothecompletenessoraccuracythereof.
Formoreinformation,pleasecontact:BillArgeropoulosPrincipal&PracticeLeader,Research(Canada)416.
673.
4029bill.
argeropoulos@avisonyoung.
comAnthonyHongResearchAnalyst905.
283.
2392anthony.
hong@avisonyoung.
com77CityCentreDriveEastTower,Suite301Mississauga,ONL5B1M5905.
712.
2100WarrenD'SouzaResearchManager,TorontoSuburbanMarkets905.
283.
2331warren.
dsouza@avisonyoung.
comTorontoWestMarketSummaryAvailabilityTrendVacancyTrendChangeinOccupiedArea(000'sofsf)NewSupply(000'sofsf)12MonthsAgo3MonthsAgoCurrentQuarter12MonthsAgo3MonthsAgoCurrentQuarterCurrentQuarterYTDYTDCompletionsUnderConstructionPreleased17.
8%15.
4%15.
6%13.
5%12.
1%12.
2%1923342963828%AvailableSpaceAvailabilityRateOfficeSpaceinSelectNodesNo.
ofBldgsBldgswithmorethan50ksfBldgswithlargestcontiguousavailableareagreaterthan50ksfNumberofspacesbetween4kand8ksfDirect%Sublet%Total%AirportCorpCtrClassA37731714.
61.
215.
8AirportCorpCtrAllClasses51832214.
31.
816.
1BurlingtonClassA2420816.
20.
616.
8BurlingtonAllClasses60201913.
80.
814.
6HeartlandClassA2820119.
72.
512.
2HeartlandAllClasses47312113.
21.
915.
1MeadowvaleClassA3543210.
02.
512.
5MeadowvaleAllClasses6164912.
11.
813.
9MississaugaCityCtrClassA1400138.
81.
410.
2MississaugaCityCtrAllClasses2400199.
01.
110.
1OakvilleClassA4143715.
70.
616.
3OakvilleAllClasses65531518.
80.
519.
3TorontoWestClassA24826157913.
31.
414.
7TorontoWestAllClasses504372316014.
51.
115.
6ComparisonofLeasingOptionsforTenantsAddressNodeTenantSize2727MeadowpineBoulevardMeadowvalePurolator89,000sfDundasKiplingCentreEtobicokeSouthJonviewCanadaInc.
37,000sf2655NorthSheridanWaySheridanCarbonite21,000sf6790CenturyAvenueMeadowvaleCGI21,000sf6990CreditviewDriveMeadowvaleMasco18,000sfTorontoWestSignificantTransactions

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