Last Updated on October 24, 2023 by Ephraim Vecina
Sustained demand for commercial property in Toronto is promising to feed into a virtuous cycle of more business and investment, in turn further driving the city’s flourishing commercial market, according to a new market overview by RE/MAX.
“As Canada’s global business hub, with many companies headquartered in the heart of downtown, there are plenty of job opportunities. The city is also a great place for entrepreneurs with its many business incubators,” RE/MAX explained.
A study by Startup Genome found that as of 2018, Toronto is one of North America’s largest financial services hubs, playing host to 360,000 employees and 12,000 firms.
The figures dovetailed with PwC’s analysis covering the same year, which reported that Toronto’s tech ecosystem is the best in Canada. In 2018, the city saw a total of $1.7 billion raised across 160 deals – a volume equivalent to the combined performances of Vancouver and Montreal.
At present, the market’s office vacancy – which is the most in-demand asset class among the multiple tech companies that have taken root in the city – is around 1%.
“If you look at Manhattan, Chicago, Washington, San Francisco, Boston, Pittsburgh, Atlanta, Miami [and] Phoenix as all major central business districts within North America, Toronto has the lowest vacancy rate of all of them,” Colliers International (Toronto) senior managing director Daniel Holmes told Postmedia.
Recent Colliers data indicated that around 9.4 million square feet in new offices is currently being built in the GTA alone. A significant proportion of these new developments is slated for completion either by next year or by 2021.
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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