New Office Supply in Toronto Drives Market Activity
Demand for quality office space in Toronto has risen resulting in 24.8 million square feet of new and projected construction between now and the next 10 years, which will help alleviate pressure on rising rental rates. Redevelopment projects continue to occur along major nodes of the central Greater Toronto Area.
In the suburbs, the demand for flex space continues to grow, drawing more tenants away from older product. Pressure may be felt with the challenge of absorbing large amounts of space into the market; however, high net absorption and pre-leasing figures in 2014 indicate stable and sufficient demand for the new space. If this rate absorption continues, the Toronto office market holds promise for continued future investment and financing.
The Largo Group of Companies is a mortgage banker that provides commercial real estate financing for property owners throughout the United States and Canada.
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