Toronto, Calgary set for rise in office vacancies

http://www.theglobeandmail.com/servlet/story/LAC.20080917.RCOMMERCIAL17/TPStory/?query=real+estate

LORI MCLEOD

REAL ESTATE REPORTER

Building booms in Toronto and Calgary will soon bring the first significant new stream of office space since the early 1990s, welcome relief for tenants bursting at the seams but also cause for concern at a time the economy is slowing.

“Beginning in 2010, both Toronto and Calgary especially will become a tenant market instead of an owner market. There will be a sudden and dramatic increase in Class A office space in downtown Toronto but a slower one in Calgary because the new inventory will be added gradually,” Stefan Ciotlos, president of CB Richard Ellis, said in a statement.

In most Canadian cities, vacancy rates are at or near historic lows, averaging just 3.9 per cent nationwide in the third quarter of 2008. That’s expected to rise to 5.9 per cent by the end of 2009.

The vacancy rate for Canadian office space is expected to jump when new supply floods the market next year, according to a report released yesterday by CB Richard Ellis Ltd.
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