Northern Light
Superstar
A couple of things here.
@AHK and @allengeorge are both correct if taking opposite perspectives (how full is the glass).
I will offer that Toronto's explosive growth will create new demand over time, but certainly, baring a major new entry to market, we're not talking the next 3 years. (to even consider moving ahead, which is 6+ years to occupancy).
Further, I will note that proposals are being moved into the process to convert/demolish many class B and C buildings. I just reported that on a large office building at St.Clair and Avenue.
Taking that kind of space out of the market will change the vacancy stats fairly quickly.
There are more such projects in the works, a 1/2 dozen anyway; so expect to see millions of ft2 of office inventory leave.
Also, while some hybrid work arrangements are being made permanent, more work places are imposing 3 day minimums (in office) and some going back to more traditional staffing.
Important to note that the advantage of certain new-build space, of which Union Centre is one, is the very large, open floor plates that older class B and C buildings (and some A buildings too) simply can't offer.
So you will see some migration to quality and older buldings will come offline.
But no, it won't be this year or next, in all liklihood and could be as much as a decade before another major tower comes online. Though don't rule out that it may be sooner.
****
Final note, perhaps we could rest this thread again. A general discussion of the office market has its place, but really isn't the basis for bumping this old thread with news that isn't project-specific.
@AHK and @allengeorge are both correct if taking opposite perspectives (how full is the glass).
I will offer that Toronto's explosive growth will create new demand over time, but certainly, baring a major new entry to market, we're not talking the next 3 years. (to even consider moving ahead, which is 6+ years to occupancy).
Further, I will note that proposals are being moved into the process to convert/demolish many class B and C buildings. I just reported that on a large office building at St.Clair and Avenue.
Taking that kind of space out of the market will change the vacancy stats fairly quickly.
There are more such projects in the works, a 1/2 dozen anyway; so expect to see millions of ft2 of office inventory leave.
Also, while some hybrid work arrangements are being made permanent, more work places are imposing 3 day minimums (in office) and some going back to more traditional staffing.
Important to note that the advantage of certain new-build space, of which Union Centre is one, is the very large, open floor plates that older class B and C buildings (and some A buildings too) simply can't offer.
So you will see some migration to quality and older buldings will come offline.
But no, it won't be this year or next, in all liklihood and could be as much as a decade before another major tower comes online. Though don't rule out that it may be sooner.
****
Final note, perhaps we could rest this thread again. A general discussion of the office market has its place, but really isn't the basis for bumping this old thread with news that isn't project-specific.
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Ok I stand corrected - question, are they all conversions and/or demolish and rebuild ? Or are there some cases of demolish and potentially rebuild at a future date, which would be the worst of course.
