Q4 2019 MARKET INSIGHTS REPORT
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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GROWING WITH YOU IN MIND
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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MARKET AT A GLANCE
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
MARKET AT A GLANCE
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.
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