Future Trends for Commercial Real Estate in the GTHA
According to CBRE Toronto, the commercial real estate market has been prospering in the first quarter of 2017, despite the current conditions of real estate market. In the GTA, vacancy rates, net absorption, and supply have dropped drastically, but 2,972,460 square feet of commercial space is under construction in the GTHA, a lot of them close to major transit stations such as Union Station and Vaughan Metropolitan Centre Station. Thanks to the continuing development of projects for commercial space, the business sectors real estate market is projected to have an increasing growth in the next quarters and years to come. However, this negatively impacts small tenants because they are unable to access ideal space because it is being leased privately as opposed to the open market. The suburban commercial real estate market also has diminishing vacancy rates and positive absorption rates, due to the improved transit in the suburbs. In the central region, financial services occupy almost half of the region, however, the suburbs is occupied almost equally by technology and financial services. Eleven percent of it is occupied by the life sciences sector, which does not exist in the central region. While there are many reasons for why this may be, it is clear that the suburbs will play a key role in the commercial real estate developments in the future years to come.
To read the full article, visit: http://urbantoronto.ca/news/2017/05/cbre-q1-office-market-report-outlines-future-trends-gtha
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