IPE Real Assets: Toronto: Canada’s tech hub is literally booming

The impact of the tech sector’s growth on commercial property has been strong. Toronto’s downtown vacancy rate is 3%, and the city has not registered the lowest downtown office vacancy rate in North America for five consecutive quarters, according to CBRE. The Waterfront Innovation Center was one building in Toronto’s downtown district that experienced “significant pre-leasing” during the third quarter of 2018, CBRE reports, making the period the “most stimulating” of the year.

Other significant leases were reported for Ivanhoé Cambridge’s CIBC Square, where Microsoft signed on for about 132,000sqft, Allie REIT and RioCan’s The Well, where e-commerce company Shopify took 434,000sqft, and Index Exchange, a technology-driven advertising marketplace, took 200,000sqft. “These massive upcoming occupancies express the immense growth in Downtown Toronto,” according to CBRE. There is ample evidence that demand for office space in Toronto will remain robust, with approximately 63% of future spaces that are currently under construction being pre-leased, CBRE reports.

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