As any used car owner will tell you, there’s advantages to owning over leasing. According to a report by Colliers, business owners in Toronto and Vancouver are adopting this philosophy when it comes to owning office space versus renting.
In Vancouver, the rate of investors in office condo buyers grew to 83 percent in 2014 from 31 percent in 2010. With $35 per square foot lease rates versus an office condo unit selling at $700 per square foot, owning makes more sense in Vancity.
Toronto also saw simliar increases in the demand for office condos, with 74 per cent of sales were to end users. Notably the majority of the sales were in the Central North area, with 56 per cent of office condo sales in 2015 and offering 43 per cent of availability.
The report cites several factors for the increase, including low interest rates, strong price-per-square-foot-growth, inceasing lease rates and opportuntiy to build equity.
To read the full report, please visit here.
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