Toronto’s office-tower vacancies to exceed New York, Boston

November 24, 2009, 8:36 PM by Rob Roberts
Original Article

By Doug Alexander

A surge in office construction in Toronto’s downtown may push the city’s vacancy rate higher than New York and Boston after developers added space during the first recession in 17 years.

The proportion of empty space in Toronto’s office market, lower than the 12 largest U.S. business districts last year, will more than triple by 2011 to 13.6%, according to Cushman & Wakefield Inc. Brookfield, Cadillac Fairview Corp. and Menkes Developments Ltd. each added a glass skyscraper in the past five months.

“We’re going to have a little bumpy ride for the next couple of years,” said Paul Morse, Cushman & Wakefield’s senior managing director of office leasing in Toronto. “We’re not going to see too many buildings after this because the economics aren’t really there to support it.”

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