Market Update Summary – Q4

Market Update Summary – Q4


Thanks for checking out our quarterly market update summary. This report includes team news and insights on the Meadowvale and Airport Corporate Centre office space for Q4 2019.

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Team News


Join us in welcoming a new member to the Chris and Adam team!

Katelyn joined us in January as our Client Experience Specialist. Her focus has been on creating and maintaining our social media, websites and marketing collateral. This will help us provide our clients with a quick turn-around on professionally designed marketing materials.

Her first task, collaborate with the team to provide quarterly market updates for the GTA West office market. We have taken the time to reflect on the market and compile our expert knowledge and predictions to help landlords stay in the know.

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Meadowvale has seen a surge in activity throughout Q4 2019 and we expect it to continue through Q1 2020. We saw Innovapost absorb 20,000 SF at 2727 Meadowpine and MDA are rumored to be close to finalizing a deal for 140,000 SF design-build in Meadowvale. Class A vacancy is sitting at 10.7% as of Q4 2019, but it’s our teams prediction that by the end of Q1 2020, the vacancy rate could drop below 9% and by the end of the year be sitting at around 7%, if not lower.

 Taking an in-depth analysis of the statistics suggests that when removing two large blocks of office space (2300 Meadowvale and 2455 Meadowpine), the vacancy rates would drop significantly and Meadowvale would truly be a Landlord market. Is it time to increase Net Rents maybe?

Airport City Centre


The Airport Corporate Centre office leasing market has seen a surge in activity in 2019 with several large contiguous blocks and large subleases being absorbed. Baylis Medical has purchased 5825 Explorer absorbing 100k of sublease space being marketed, Maersk, Medline, and Metro each absorbed 20k+ blocks of available space within 5150 Spectrum Way.

Our prediction is the ACC’s Net Rents will continue to rise towards $20.00 for Class A office product but the vacancy will remain stable until 2021, especially with the introduction of two new buildings to the market; 5050 Satelitte Drive (130k SF), and 2095 Matheson Blvd. (60k SF). Further there has been a wave of activity
in the disposition of office buildings in the ACC. Four (4) buildings were purchased in Q4 2019. Indications  suggest similar levels of activity to come in 2020.

Stay in the Know

We’ll do our best to deliver valuable insights and great advice without invading your mailbox.

6 Keys to Landlord Representation

6 Keys to Landlord Representation

Many different factors make a property attractive to tenants such as facilities, amenities and price. Too often, unsophisticated owners think price is the number #1 driving factor for why tenants lease office space, when it rarely is. There are 6 basic keys to landlord representation success that contribute to fully leased assets.

1. Know your competitive set.

To gain a winning advantage, you must know your competition intimately. This holds true in sports, politics and, of course, in the world of commercial real estate. Knowing what’s happening in the region and neighbourhood allow a deeper understanding of the forces currently at play.

2. Positioning matters.

Property positioning makes all the difference in the income it will produce and its appeal and value to future tenants and buyers. It pays to spend some time on strategy. Those who understand the value of positioning an asset will enjoy rental premiums and faster uptake of leased office space.

Consider how co-working spaces have managed to position themselves as premium office space that yield many times the returns of established executive offices or traditional office suites, disrupting what agents and lenders thought they knew about the
industry. This wasn’t just by offering modern design and cheaper rents; they offer community and tangible value of increased visibility to business owners.

3. Never miss a prospect.

Colliers Canada boasts the best Customer Relationship Management Database in the industry.  This is not just a fancy contact list, this is a game-changing piece of technology that increases leads, closes more deals  faster, and drives customer loyalty and satisfaction.  Colliers Canada is committed to exceeding clients’ expectations.

4. Mix well and form into clusters.

Positioning an industry together in a defined area offers readily understood operational advantages. This is far from a new phenomenon. But having a geographical concentration of an industry offers interconnected business, suppliers, and associated
institutions an increase in productivity, drives innovation and stimulates new businesses. By forming clusters of related tenants, building(s) become a community and destination.

5. Minimize risk.

The commercial real estate market is still prime for expansion, but risks remain. It’s critical for landlords to proactively put a risk-management program in place to minimize exposures. By having the right team of advisors that includes a commercial real estate agent, is vital for proper due diligence, staggered lease renewal dates and knowing your market to mitigate the risks.

6. Today’s lease has a ripple effect on tomorrow’s investment.

The lease that is signed today effects the future, especially NOI. A discounted rental rate draws bargain renters, increases exposure and lowers investment growth.

Tenants today want branding, image and location. Investors want positive cash flow, strong tenant covenants and growing NOI year over year. Some areas are ripe for rental increases with moderate investments made to remodelling and rebranding. By investing
wisely you’ll see rental rates increase causing property values to rise, stronger tenancies which will result in a reduction of tenant turnover.

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