q4 2010 gta office report dtz barnicke

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal, or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Limited, Real Estate Brokerage 20111

Executive Summary

• Demand for office space slowed in Q4 2010 in the Greater Toronto Area (GTA) resulting in negative absorption of 788,316 square feet.

• The GTA vacancy rate increased by 76 basis points to 8.5% after fluctuating between 7.9% and 8.8% earlier this year.

• Maple Leaf Square located in Downtown South was the only building completed in Toronto during the fourth quarter. The building was 100% leased upon completion and therefore, did not affect the vacancy rate in the market.

• Approximately 1,371,593 square feet of office space is under construction in the GTA including: 18 York Street in the Downtown South node and 610 Applewood Crescent, 6925 Century Avenue and 7125 Mississauga Road in the GTA West.

• The percentage of direct versus sublet space remained unchanged this quarter at 82% direct space available and 18% sublet space available.

• Overall average net asking rates in the GTA increased by $0.38 to $17.57 in Q4 2010 from $17.19 in Q3 2010.

• Uptown North York achieved the lowest vacancy rate (3.6%) in the GTA, whereas the Dixon/Atwell node achieved the highest rate increasing again this quarter to 21.7% from 20.5% in Q3 2010.

www.dtzbarnicke.com

Office Property MarketGreater Toronto Area

Q4 2010

ContentsEconomic Overview 2GTA Overview 3- 5

Greater Toronto Area 6

Downtown 7 -12

Midtown 13 - 16

North Yonge Corridor 17 - 20

GTA North East 21 - 26

GTA West 27 - 40

ContactsWarren D’SouzaResearch Manager+1 905 848 [email protected]

Sarah LamberskyResearch Manager+1 416 865 [email protected]

DTZ Barnicke2500-401 Bay StreetToronto, Ontario, Canada, M5H 2Y4

Tel: +1 416 863 1215Fax: +1 416 863 9555


Node Contents

Greater Toronto Area 6Downtown 7

Financial Core 8South 9West 10North 11East 12

Midtown 13Yonge / Bloor 14Yonge / St. Clair 15Yonge / Eglinton 16

North Yonge Corridor 17York Mills 18Downtown North York 19Uptown North York 20

GTA North East 21Don Mills / Eglinton 22DVP / 401 23Markham 24Richmond Hill 25Scarborough 26

GTA West 27427 Corridor 28Airport Strip 29Airport Corporate Centre 30Airport West 31Dixon & Attwell 32Mississauga City Centre 33Hurontario North 34Mississauga South 35Meadowvale 36Toronto West 37Brampton 38Oakville 39Burlington 40

Economic Overview

Economic OverviewAfter reaching its pre-crisis peak in output, the Canadian economy will experience modest growth and see a return of demand in 2011 according to a Bank of Canada (BoC). A modest pattern of growth will be supported by an increase in business spending, job growth, improved U.S. economy visible by a return of private domestic demand, as well as an increase in foreign activity resulting from the Federal Reserve’s treasury purchase and extended stimulus package. Given this modest growth prediction, the BoC projects the Canadian economy to expand by 2.4% in 2011 and 2.8% in 2012.

Leading IndicatorsReal GDP slowed to 1.0% in Q3 2010 before gaining 0.4% in November which put the economy on track to achieve TD Economics' prediction of 2.3% GDP growth in Q4 2010. In contrast to early 2010, when real GDP reached 6.1% (Q1 2010) and 5.4% (Q2 2010), 2011 figures will be similar to GDP trends in the second half of 2010. The BoC’s January Monetary Policy report revised its expectations upward that the Canadian economy will expand by 2.4% in 2011 and 2.8% in 2012, in contrast to its October Monetary Policy report’s projections of 2.3% in 2011 and 2.6% in 2012.

Economic drivers in Canada included an increase in business investment, positive demand expectations for goods and services, an increase in consumer spending as well as an increase in household investment.

During the first six months of 2010, government and consumer spending were responsible for stimulating a significant proportion of the economy but going forward in 2011 as government spending winds down and household balance sheets continue to bring back in check, it will be an increase in foreign activity and domestic business investment that will contribute to GDP growth.

In Q4 2010, the BoC decided to maintain its target overnight rate at 1% after a ¼ of a percent increase in Q3 2010 extending favourable credit conditions to businesses and consumers alike. Despite low interest rates, since June 2010, housing starts have followed a downward trend. This quarter, housing starts fluctuated seeing a 13.3% decrease in December after an 18.2% jump in November.

Lagging IndicatorsThe unemployment rate in Canada held steady at 7.6% in Q4 2010 declining from 8.0% in Q3 2010. 22,000 new jobs were created in December while overall, 368,500 jobs were created in 2010.

Finally, according to the Bank of Canada’s Business Outlook Winter Survey firms reported higher sales growth over the past 12 months in contrast to the previous 12 months. They also reported an easing of credit conditions and expected modest growth to businesses in 2011. Companies tied to commodity related businesses expressed optimism dues to strength in commodity prices.

TorontoToronto’s unemployment rate kept pace with the national average and settled at 7.6% in December decreasing from 8.4% in November. Commercial permits also increased this quarter by 1.1% to 708 permits representing a value of $191.1 million.


Greater Toronto Area Overview

As 2010 comes to a close, demand across most markets in the Greater Toronto Area (GTA) slowed as the city experienced negative absorption in Q4 2010.

Of the 788,361 square feet of space not absorbed this quarter, the financial core, and GTA West saw the greatest amount of space brought back to market. However, despite the negative absorption overall, there were still pockets of growth includingDowntown South, Downtown West, the North York area, Markham as well as Mississauga South and Airport Corporate Centre.

In light of this quarter’s trends and absorption figure, the vacancy rate increased from 7.9% in Q3 2010 to 8.5% in Q4 2010. (Chart 1) On a whole, absorption still continues to outpace new office completions in Toronto, thereby signaling healthy demand.

Maple Leaf Square in Downtown South was completed this quarter adding approximated 225,000 square feet of space to the market however the building was 100% pre-leased and therefore did not affect the downtown core’s vacancy rate.

Ten buildings remain under construction in the Downtown South and GTA West markets which will add an additional 1.4 million square feet of office space over the next three years.

In the GTA, the weighted average rental rate was stable this quarter as the vacancy rate for the city increased. (Chart 2) The Downtown Core commanded the highest average gross rental rate for Class A buildings at $58.35, an increase from $57.06 in Q3 2010. Burlington achieved the lowest average gross rental rate at $27.77 in comparison to Toronto West’s rate of $25.43 in Q3 2010. (Chart 3)

Chart 3

Chart 1 Chart 2

GTA Weighted Average Gross Rent

$0 $10 $20 $30 $40 $50 $60

Downtown Core $54.60Downtown South $48.16

Uptown North York $40.65Downtown West $39.81

York Mills $38.91St. Clair/Yonge $36.66

Bloor/Yonge $36.52Downtown North $36.49

Downtown North York $34.73Eglinton $33.40

Mississauga City Centre $32.97ACC $30.86

Oakville $30.15Downtown East $28.39

427 Corridor $27.99Meadowvale $27.57

Markham $27.52Scarborough $26.98

Richmond Hill $26.67DVP/401 $26.59

Toronto West $26.36Don Mills/Eglinton $25.59

Hurontario North $25.40Burlington $25.30

Airport Strip $25.22Dixon Rd. & Attwell $25.12

Mississauga South $24.20Brampton $22.59

Airport West $22.35

Gross Rent ($/sq ft)

GTA Supply vs. Demand

-3,000,000

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2001200220032004200520062007200820092010

Squa

re F

eet

Building Completions Absorption

GTA Net Rent vs. Vacancy Rate

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Q3 06

Q3 07

Q3 08

Q3 09

Q3 10

Rent

($)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Vaca

ncy

Rate

(%)

GTA Net Rent Vacancy Rate


DRAFT

Greater Toronto Area Overview

GTA Vacancy Rates High/Low

GTA Map

Markets with lowest vacancy rates

Uptown North York 3.57%

Downtown North York

Downtown North

Mississauga South

3.85%

3.93%

4.11%

Markets with largest quarterly decrease

Markets with largest quarterly increaseMarkets with highest vacancy rates

Dixon/Atwell

Downtown West

Airport West

Airport West

Downtown South

Oakville

Airport Corporate

York Mills

Brampton

Markham

Airport Strip Yonge/St.Clair

-2.04%

-1.36%

-1.35%

-0.90%

21.67%

17.31%

16.58%

16.47%

4.91%

4.58%

3.55%

2.68%


GTA Office Market IntelligenceVacancy and Availability Rates

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Financ

ial C

ore

Bloor/Y

onge

Eglinto

n/Yon

ge

North Y

onge

Corr

idor

Markha

m

Richmon

d Hill

Scarbo

rough

Airport

Mississ

auga

Brampto

n

Oakvil

le

Burling

ton

Ava

ilabi

lity

Rat

e

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Office Vacancy Rates Across The GTA

Availability Rates By Major Market Node Q4 2009 to Q4 2010

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Limited, Real Estate Brokerage

Markham / Richmond Hill

8.7%

Scarborough

15.9%DVP / Don

Mills

10.2%

Airport

17.6%

N. West

5.7%

427 Corridor

8.7%

North Yonge

5.1%

SC 6.6%

Downtown 6.9%

BL 6.7%

Meadowvale

10.5%

Mississauga

8.0%

Oakville

13.2%Burlington

11.1%

GTA Overall Office Vacancy Rate is 8.5%

EG 10.2%


$17.13

$12.40

$13.74

$19.39

$19.92

$24.73

AverageAdditional

80.9%

82.9%

77.6%

55.2%

88.1%

83.2%

Direct SpaceRatio

19.1%

17.1%

22.4%

44.8%

11.9%

16.8%

Sublet SpaceRatio

$17.56

$15.12

$13.08

$17.32

$16.94

$25.14

Average AskingRate

130,268,550

30,442,053

24,066,276

7,723,534

14,171,932

53,864,755

Survey Inventory

732,96713.0%11.2%West

1,371,59310.0%8.5%GTA

012.7%10.4%North East

07.9%5.1%North Yonge Corridor

Midtown

Downtown

Market Area

08.6%7.8%

638,6267.9%6.9%

UnderConstruction

AvailabilityRateVacancy Rate

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

Per

cent

age

Avail. Direct (Sq Ft) Avail. Sublet (Sq Ft) Availability Rate (%)

-1,000,000

-600,000

-200,000

200,000

600,000

1,000,000

1,400,000

1,800,000

2,200,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

Per

cent

age

Net Absorption (Sq Ft) Availability Rate (%) Vacancy Rate (%)

Q4 2010 Office Property MarketGreater Toronto Area

Availability & Vacancy Direct & Sublet Availabilities

Market Summary

Direct "A"42% Sublet "A"

12%

Sublet "B"4%

Direct "C"15%

Sublet "C"1%

Direct "B"26%

Availabilities by Class & Type

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A B C Overall

Dol

lar A

mou

nt

Net Rent ($/Sq Ft) Additional Rent ($/Sq Ft)

Weighted Average Asking Rates & Additional Rents

Notable PointsMap of Market Area

• The Greater Toronto Area experienced negative absorption this quarter.

• The availability rate increased by 76 basis points to 10.1% in Q4 2010 from 9.3% in Q3 2010.

• The average asking rate for direct space across all office classes increased $0.37 to $17.56 in Q4 2010 from $17.18 in Q3 2010.

• There are ten office buildings currently under construction in the GTA.

• There are 19 opportunities of space equal to or greater than 100,000 square feet in the GTA.

* Weighted average rents are calculated based on publicly advertised rental rates, which may ormay not include inducements. Sample sizes vary node by node.

Source: DTZ Barnicke* Market statistics, charts, and tables are based on the office inventory, excluding government occupied offices, owner occupied offices, and offices with less than 20,000 square feet of rentable office space.


$24.73

$13.72

$19.55

$18.79

$21.59

$27.18

AverageAdditional

83.2%

98.6%

94.5%

85.4%

43.7%

84.8%

Direct SpaceRatio

16.8%

1.4%

5.5%

14.6%

56.3%

15.2%

Sublet SpaceRatio

$25.14

$14.67

$16.95

$21.02

$26.57

$27.42

Average AskingRate

53,864,755

1,429,002

7,551,335

7,655,004

3,406,713

33,822,701

SurveyInventory

08.6%8.5%East

638,6267.9%6.9%Downtown

04.1%3.9%North

06.0%5.3%West

South

Financial Core

Market Node

638,6268.5%4.6%

09.2%8.0%

UnderConstruction

AvailabilityRate

Vacancy Rate

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown


Market Summary

Direct "A"60%

Sublet "A"11%

Direct "B"9%

Sublet "B"3%

Direct "C"16%

Sublet "C"1%


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

A B C Overall

Dol

lar A

mou

nt




• The Downtown market area experienced a quarter of negative absorption.

• The availability rate increased by 59 basis points to 7.9% in Q4 2010 from 7.3% in Q3 2010.

• The average asking rate for direct space across all office classes increased by $0.95 to $25.14 in Q4 2010 from $24.33 in Q3 2010.

• There is one office building currently under construction in the Downtown market area located in the Downtown South node.

• There are 15 opportunities for space equal to or greater than 100,000 square feet in this market area, one of which is under construction.

* Market statistics, charts, and tables are based on the office inventory, excluding government occupied offices, owner occupied offices, and offices with less than 20,000 square feet of rentable office space.


Source: DTZ Barnicke


$27.18

$18.15

$21.71

$28.82

AverageAdditional

84.8%

92.3%

82.8%

83.7%

Direct SpaceRatio

15.2%

7.7%

17.2%

16.3%

Sublet SpaceRatio

$27.42

$16.81

$20.12

$29.52

Average AskingRate

33,822,701

3,000,493

5,448,913

25,373,295

SurveyInventory

09.2%8.0%Financial Core

013.6%12.8%C

B

A

Class

06.0%5.2%

09.3%8.1%

UnderConstruction


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

5%

10%

15%

20%

25%

30%

35%

40%

Per

cent

age

Avail. Direct (Sq Ft) Avail. Sublet (Sq Ft) % of Avail. that is Sub

-600,000

-400,000

-200,000

0

200,000

400,000

600,000

800,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown - Financial Core


Market Summary

Sublet "A"10%

Direct "B"8%

Sublet "B"1%Direct "C"

10%

Sublet "C"1%

Direct "A"70%


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

A B C Overall

Dol

lar A

mou

nt




• The Financial Core reverted back to a quarter of negative absorption.

• The availability rate increased 136 basis points to 9.2% in Q4 2010 from 7.8% in Q3 2010. This represents a year over year increase of 104 basis points.


• There are no office buildings under construction in the Financial Core.

• There are ten opportunities for space 100,000 square feet or greater.





$21.59

$15.00

$17.47

$23.56

AverageAdditional

43.7%

100.0%

22.0%

48.8%

Direct SpaceRatio

56.3%

0.0%

78.0%

51.2%

Sublet SpaceRatio

$26.57

$15.00

$20.00

$29.85

Average AskingRate

3,406,713

101,500

636,096

2,669,117

Survey Inventory

637,0008.5%4.6%DT South

09.1%9.1%C

B

A

Class

011.4%4.3%

637,0007.7%4.6%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

60%

70%

Per

cent

age


-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown - South


Market Summary

Direct "A"37%

Direct "B"5%

Sublet "B"19%

Direct "C"3%

Sublet "A"36%


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

A B C Overall

Dol

lar A

mou

nt





• The Downtown South market experienced a third quarter of positive absorption.

• The availability rate decreased by 136 basis points to 8.5% in Q4 2010 from 9.8% in Q3 2010; a year over year decrease of 299 basis points.

• The average asking rate for direct space across all office classes decreased by $2.18 to $26.57 in Q4 2010 from $28.75 in Q3 2010.

• There are two office buildings under construction in the Downtown South market.

• There are two opportunities for space 100,000 square feet or greater.




$18.79

$14.55

$15.06

$21.39

AverageAdditional

85.4%

94.8%

48.4%

80.7%

Direct SpaceRatio

14.6%

5.2%

51.6%

19.3%

Sublet SpaceRatio

$21.02

$16.61

$10.00

$23.78

Average AskingRate

7,655,004

3,138,857

642,139

3,874,008

SurveyInventory

05.9%5.3%DT West

06.4%6.1%C

B

A

Class

03.2%1.9%

06.1%5.1%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-2%

2%

6%

10%

14%

18%

22%

26%

30%

Per

cent

age


-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown - West


Market Summary

Direct "A"50%

Direct "C"36%

Sublet "C"2%

Sublet "B"2%

Direct "B"2%

Sublet "A"8%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

A B C Overall

Dol

lar A

mou

nt





• The Downtown West market experienced a fourth quarter of positive absorption.

• The availability rate decreased by 204 basis points to 5.9% in Q4 2010 from 8.0% in Q3 2010; a year over year decrease of 635 basis points.

• The average asking rate for direct space across all office classes decreased $1.06 to $21.02 in Q4 2010 from $22.08 in Q3 2010.

• There are no office buildings under construction in the Downtown West market.

• There are three opportunities for space 100,000 square feet or greater.




$19.55

$19.26

$18.84

$21.96

AverageAdditional

94.5%

98.3%

91.9%

90.0%

Direct SpaceRatio

5.5%

1.7%

8.1%

10.0%

Sublet SpaceRatio

$16.95

$16.89

$16.19

$18.85

Average AskingRate

7,551,335

1,165,901

4,923,503

1,461,931

SurveyInventory

04.1%3.9%DT North

012.2%12.1%C

B

A

Class

02.3%2.2%

03.6%3.3%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

5%

10%

15%

20%

25%

30%

35%

40%

Per

cent

age


-150,000

-100,000

-50,000

0

50,000

100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown - North


Market Summary

Direct "A"15%

Sublet "B"3%

Direct "C"44%

Sublet "C"1%

Sublet "A"2%

Direct "B"35%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A B C Overall

Dol

lar A

mou

nt





• The Downtown North market experienced a quarter of negative absorption.

• The availability rate increased 57 basis points to 4.1% in Q4 2010 up from 3.5% in Q3 2010; a year over year increase of 186 basis points.


• There are no office buildings under construction in the Downtown North node.

• There are no opportunities for space 100,000 square feet or greater.




$13.72

$13.72

$13.43

$19.47

AverageAdditional

98.6%

100.0%

90.9%

-

Direct SpaceRatio

1.4%

0.0%

9.1%

-

Sublet SpaceRatio

$14.67

$14.67

$18.18

$18.00

Average AskingRate

1,429,002

1,148,198

143,000

137,804

SurveyInventory

08.6%8.5%DT East

09.1%9.1%C

B

A

Class

012.8%11.9%

0--

UnderConstruction


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

Per

cent

age


-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - Downtown - East


Market Summary

Direct "B"14%

Sublet "B"1%

Direct "C"85%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B C Overall

Dol

lar A

mou

nt





• The Downtown East market experienced a quarter of negative absorption.

• The availability rate increased by 95 basis points to 8.6% Q4 2010 from 7.7% in Q3 2010; a year over year decrease of 88 basis points.


• There are no office buildings under construction in the Downtown East market.





$19.92

$18.38

$25.93

$19.60

AverageAdditional

88.1%

91.1%

84.3%

86.7%

Direct SpaceRatio

11.9%

8.9%

15.7%

13.3%

Sublet SpaceRatio

$16.94

$15.02

$23.22

$16.92

Average AskingRate

14,171,932

4,515,559

2,408,211

7,248,162

SurveyInventory

08.6%7.8%Midtown

010.9%10.2%Yonge / Eglinton

Yonge / St. Clair

Yonge / Bloor

Market Node

07.5%6.6%

07.5%6.7%

UnderConstruction

AvailabilityRate

Vacancy Rate

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - Midtown


Market Summary

Direct "A"16%

Direct "B"60%

Sublet "B"6%

Direct "C"13%

Sublet "A"5%


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

A B C Overall

Dol

lar A

mou

nt




• The Midtown market area experienced a quarter of negative absorption.

• The availability rate increased 129 basis points to 8.6% in Q4 2010 from 7.3% in Q3 2010; a yearly increase of 40 basis points from Q4 2009.

• The average asking rate for direct space across all office classes increased by $1.01 to $16.94 in Q4 2010 from to $15.09 in Q3 2010.

• There are no office buildings currently under construction in the Midtown market.

• There is one opportunity to take space equal to or greater than 100,000 square feet in the Midtown node.





$19.60

$18.72

$19.73

$19.64

AverageAdditional

86.7%

100.0%

94.1%

58.9%

Direct SpaceRatio

13.3%

0.0%

5.9%

41.1%

Sublet SpaceRatio

$16.92

$14.24

$16.49

$21.81

Average AskingRate

7,248,162

700,307

4.038,481

2,509,374

Survey Inventory

07.5%6.7%Yonge / Bloor

08.5%8.5%C

B

A

Class

08.9%8.5%

04.9%3.3%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

Per

cent

age


-100,000

-75,000

-50,000

-25,000

0

25,000

50,000

75,000

100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - Midtown - Yonge / Bloor


Market Summary

Direct "A"13%

Sublet "A"9%

Direct "B"63%

Sublet "B"4%

Direct "C"11%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A B C Overall

Dol

lar A

mou

nt





• The Yonge / Bloor market experienced a quarter of negative absorption.

• The availability rate increased by 121 basis points to 7.5% in Q4 2010, up from 6.3%; a year over year decrease of 87 basis points.


• There are no office buildings under construction in the Yonge / Bloor market.

• There is one opportunity for space 100,000 square feet or greater.




$19.37

$15.53

$17.20

$21.63

AverageAdditional

84.3%

100.0%

84.8%

79.3%

Direct SpaceRatio

15.7%

0.0%

15.2%

20.7%

Sublet SpaceRatio

$16.29

$14.14

$15.95

$16.26

Average AskingRate

2,408,211

303,560

1,434,745

669,906

SurveyInventory

07.5%6.6%Yonge / St. Clair

05.6%5.6%C

B

A

Class

07.1%6.2%

09.4%7.8%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

9%

18%

27%

36%

45%

Per

cent

age


-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Per

cent

age


Q4 2010 Office Property MarketGTA - Midtown - Yonge / St. Clair


Market Summary

Direct "B"50%

Direct "C"12%

Sublet "B"7%

Sublet "A"6%

Direct "A"25%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A B C Overall

Dol

lar A

mou

nt





• The Yonge / St. Clair market experienced a quarter of negative absorption.

• The availability rate increased 268 basis points to 7.5% in Q4 2010 up from 4.8% in Q3 2010; a year over year decrease of 115 basis points.

• The average asking rate for direct space across all office classes increased by $0.18 to $16.29. in Q4 2010 from $16.11 in Q3 2010.

• There are no office buildings under construction in the Yonge / St. Clair market.





$18.38

$15.13

$19.15

$18.97

AverageAdditional

91.1%

100.0%

87.0%

100.0%

Direct SpaceRatio

8.9%

0.0%

13.0%

0.0%

Sublet SpaceRatio

$15.02

$12.34

$15.54

$15.89

Average AskingRate

4,515,559

900,562

3,004,973

610,024

Survey Inventory

010.9%10.2%Yonge / Eglinton

08.9%8.9%C

B

A

Class

011.3%10.1%

012.3%12.3%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Per

cent

age


-150000

-125000

-100000

-75000

-50000

-25000

0

25000

50000

75000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - Midtown - Yonge / Eglinton


Market Summary

Direct "A"15%

Direct "C"16%

Direct "B"60%

Sublet "B"9%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B C Overall

Dol

lar A

mou

nt





• The Yonge / Eglinton market experienced positive absorption this quarter.

• The availability rate increased by 148 basis points to 7.3% in Q3 2010 from 11.7% in Q2 2010; a year over year increase of 258 basis points.


• There are no office buildings under construction in the Yonge / Eglinton market.





$19.39

$20.65

$18.19

$20.98

AverageAdditional

55.2%

94.0%

45.1%

57.6%

Direct SpaceRatio

44.8%

6.0%

54.9%

42.4%

Sublet SpaceRatio

$17.32

$20.00

$16.54

$17.94

Average AskingRate

7,723,534

1,795,401

4,558,801

1,369,332

SurveyInventory

07.9%5.1%North Yonge

03.8%3.6%Uptown North York

Downtown North York

York Mills

Market Node

06.9%3.9%

016.9%11.2%

UnderConstruction

AvailabilityRate

Vacancy Rate

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - North Yonge Corridor


Market Summary

Direct "A"57%

Sublet "A"37%

Direct "B"5%

Sublet "B"1%

Direct "C"0%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B Overall

Dol

lar A

mou

nt





• The North Yonge Corridor market experienced a second quarter of positive absorption.

• The availability rate decreased 44 basis points to 7.9% in Q4 2010 from 8.4% in Q3 2010.


• There are no office buildings currently under construction in the North Yonge Corridor.

• There are no opportunities for space equal to or greater than 100,000 square feet in this market.




$20.98

-

$17.35

$21.35

AverageAdditional

57.57%

-

100.00%

56.32%

Direct SpaceRatio

42.43%

-

0.00%

43.68%

Sublet SpaceRatio

$17.94

-

$17.32

$18.00

Average AskingRate

1,369,332

-

244,100

1,125,232

Survey Inventory

016.90%11.17%York Mills

0--C

B

A

Class

02.70%2.70%

019.98%13.00%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

60%

70%

80%

Per

cent

age


-90,000

-70,000

-50,000

-30,000

-10,000

10,000

30,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Per

cent

age


Q4 2010 Office Property MarketGTA - North Yonge Corridor - York Mills


Market Summary

Direct "A"69%

Sublet "A"29%

Direct "B"2%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A B Overall

Dol

lar A

mou

nt





• The York Mills market experienced a second quarter of positive absorption.

• The availability rate decreased 135 basis points to 16.9% in Q4 2010 from 18.3% in Q3 2010; a year over year increase of 463 basis points.


• There are no office buildings under construction in the York Mills market.





$18.19

-

$17.99

$18.27

AverageAdditional

45.1%

-

78.6%

40.6%

Direct SpaceRatio

54.9%

-

21.4%

59.4%

Sublet SpaceRatio

$16.54

-

$17.21

$16.30

Average AskingRate

4,558,801

-

1,180,183

3,378,618

SurveyInventory

06.9%3.9%DT North York

0--C

B

A

Class

03.2%2.6%

08.2%4.3%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

60%

70%

80%

Per

cent

age


-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - North Yonge Corridor - Downtown North York


Market Summary

Sublet "A"52%

Direct "A"36%

Direct "B"9%

Sublet "B"3%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B Overall

Dol

lar A

mou

nt





• The Downtown North York market experienced a second quarter of positive absorption.

• The availability rate decreased 22 basis points to 6.9% in Q4 2010 up from 7.1% in Q3 2010; a year over year decrease of 108 basis points.


• There are no office buildings under construction in the Downtown North York market.





$20.65

-

-

$20.65

AverageAdditional

95.0%

100.0%

-

93.8%

Direct SpaceRatio

5.0%

0.0%

-

6.2%

Sublet SpaceRatio

$20.00

-

-

$20.00

Average AskingRate

1,795,401

193,213

-

1,602,188

Survey Inventory

03.8%3.6%UT North York

01.4%1.4%C

B

A

Class

0--

04.0%3.8%

UnderConstruction


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

Per

cent

age


-35,000

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

Per

cent

age


Q4 2010 Office Property MarketGTA - North Yonge Corridor - Uptown North York


Market Summary

Direct "A"91%

Sublet "A"5%

Direct "C"4%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

A Overall

Dol

lar A

mou

nt





• The Uptown North York market experienced a second quarter of positive absorption.

• The availability rate decreased 30 basis points to 3.8% in Q4 2010 from 4.1% in Q3 2010; a year over year decrease of 153 basis points.

• The average asking rate for direct space across all office classes increased by $1.00 to $20.00 in Q4 2010 from $19.00 per square foot in Q3 2010..

• There are no office buildings under construction in the Uptown North York market.





$13.74

$14.01

$12.15

$12.14

$15.34

$14.20

AverageAdditional

77.6%

92.3%

80.3%

63.6%

81.8%

79.6%

Direct SpaceRatio

22.4%

7.7%

19.7%

36.4%

18.2%

20.4%

Sublet SpaceRatio

$13.08

$12.97

$14.52

$15.38

$11.25

$11.39

Average AskingRate

24,066,276

3,699,437

1,974,892

8,022,331

7,500,126

2,869,490

Survey Inventory

016.9%15.9%Scarborough

012.7%10.4%North East

09.2%7.8%Richmond Hill

012.5%8.9%Markham

DVP / 401

Don Mills / Eglinton

Market Node

011.6%9.9%

013.1%11.0%

UnderConstruction


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

Per

cent

age


-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East


Market Summary

Direct "A"40%

Direct "C"6%

Sublet "A"16%

Direct "B"33%

Sublet "B"5%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The GTA North East market area experienced positive absorption in Q4 2010.

• The availability rate decreased by 44 basis points to 12.7% in Q4 2010 from 13.2% in Q3 2010


• There are no office buildings currently under construction in the GTA North East market area.

• There are three opportunities for space that is greater than or equal to 100,000 square feet in the North East market node.




$14.20

$12.88

$14.18

$16.09

AverageAdditional

79.6%

-

83.2%

46.6%

Direct SpaceRatio

20.4%

-

16.8%

53.4%

Sublet SpaceRatio

$11.39

$7.56

$11.96

$12.00

Average AskingRate

2,869,490

615,419

1,477,427

776,644

SurveyInventory

013.1%11.0%Don Mills / Eglinton

07.2%6.7%C

B

A

Class

019.3%16.7%

06.0%3.4%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

60%

Per

cent

age


-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East - Don Mills / Eglinton


Market Summary

Direct "A"9%

Sublet "A"7%

Direct "C"0%

Direct "B"71%

Sublet "B"13%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

A B C Overall

Dol

lar A

mou

nt





• The Don Mills / Eglinton market node experienced a second quarter positive absorption.



• There are no office buildings under construction in the Don Mills / Eglinton market.

• There are two opportunities for space 100,000 square feet or greater.




$15.34

$15.24

$14.27

$16.87

AverageAdditional

81.8%

93.0%

88.7%

69.8%

Direct SpaceRatio

18.2%

7.0%

11.3%

30.2%

Sublet SpaceRatio

$11.25

$9.60

$9.94

$13.34

Average AskingRate

7,500,126

1,226,452

3,530,991

2,742,683

SurveyInventory

011.6%9.9%DVP / 401

04.7%4.5%C

B

A

Class

013.6%12.3%

012.1%9.2%

UnderConstruction


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-10%

0%

10%

20%

30%

40%

Per

cent

age


-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East - DVP / 401


Market Summary

Direct "A"34%

Sublet "A"10%

Direct "B"44%

Direct "C"6%

Sublet "B"6%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The DVP / 401 market node experienced a second quarter of positive absorption.



• There are no office buildings under construction in the DVP / 401 market.





$12.14

$10.57

$11.37

$12.41

AverageAdditional

63.6%

100.0%

82.9%

57.6%

Direct SpaceRatio

36.4%

0.0%

17.1%

42.4%

Sublet SpaceRatio

$15.38

$10.88

$12.34

$16.45

Average AskingRate

8,022,331

472,204

1,787,219

5,762,908

SurveyInventory

012.5%8.9%Markham

02.1%2.1%C

B

A

Class

012.4%10.7%

013.4%8.9%

UnderConstruction


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-10%

0%

10%

20%

30%

40%

50%

60%

Per

cent

age


-160,000

-120,000

-80,000

-40,000

0

40,000

80,000

120,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East - Markham


Market Summary

Direct "A"48%

Direct "B"17%

Sublet "B"4%

Sublet "A"30%

Direct "C"1%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The Markham market experienced a second quarter of positive absorption.



• There are no office buildings under construction in the Markham market.





$12.15

$10.33

$11.42

$12.66

AverageAdditional

80.3%

96.5%

78.7%

75.5%

Direct SpaceRatio

19.7%

3.5%

21.3%

24.6%

Sublet SpaceRatio

$14.52

$11.96

$14.20

$15.13

Average AskingRate

1,974,892

393,084

453,708

1,128,100

SurveyInventory

09.2%7.8%Richmond Hill

09.9%9.7%C

B

A

Class

04.4%3.7%

010.9%8.7%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

7%

14%

21%

28%

35%

Per

cent

age


-14,000

-8,000

-2,000

4,000

10,000

16,000

22,000

28,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East - Richmond Hill


Market Summary

Sublet "A"16%

Direct "B"8%Sublet "B"

2%

Direct "C"20%

Sublet "C"1%

Direct "A"53%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

A B C Overall

Dol

lar A

mou

nt





• The Richmond Hill market experienced a third quarter of negative absorption.

• The availability rate increased 24 basis points to 9.2% in Q4 2010 from 9.0% in Q3 2010; a year over year decrease of 87 basis points.


• There are no office buildings under construction in the Richmond Hill market.





$14.01

$14.06

$9.78

$16.49

AverageAdditional

92.3%

97.9%

91.6%

91.7%

Direct SpaceRatio

7.7%

2.1%

8.4%

8.3%

Sublet SpaceRatio

$12.97

$11.06

$11.07

$14.48

Average AskingRate

3,699,437

706,957

1,059,087

1,933,393

SurveyInventory

016.9%15.9%Scarborough

09.0%8.8%C

B

A

Class

017.9%16.7%

019.3%18.0%

UnderConstruction


540,000

560,000

580,000

600,000

620,000

640,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

Per

cent

age


-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Per

cent

age


Q4 2010 Office Property MarketGTA - North East - Scarborough


Market Summary

Direct "A"54%

Sublet "A"5%

Direct "B"28%

Sublet "B"3%

Direct "C"10%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The Scarborough market experienced a third quarter of negative absorption.

• The availability rate did not change from 16.9% in Q3 2010; a year over year increase of 81 basis points.


• There are no office buildings under construction in the Scarborough market.

• There is one opportunity to occupy space of 100,000 square feet or greater.




0$13.98$15.3321.3%78.7%9.7%8.0%8,023,184Mississauga Total

376,000$11.60$15.9621.3%78.7%12.6%10.5%2,895,879 Meadowvale

120,845$13.17$13.191.7%98.3%5.8%5.7%2,155,730Toronto West

113,227$9.74$12.857.9%92.1%10.3%9.6%991,559 Brampton

122,895$11.46$18.695.1%94.9%13.8%13.2%1,694,719 Oakville

$12.40

$9.81

$12.92

$15.14

AverageAdditional

83.0%

83.9%

81.7%

84.8%

Direct SpaceRatio

17.0%

16.1%

18.3%

15.2%

Sublet SpaceRatio

$15.12

$15.49

$14.65

$12.84

Average AskingRate

30,442,053

2,868,012

7,524,628

4,288,342

Survey Inventory

012.8%11.1%Burlington

732,96713.0%11.2%West

Airport Total

427 Corridor

Market Node

020.6%17.6%

09.9%8.7%

UnderConstruction


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

Per

cent

age


-700,000

-500,000

-300,000

-100,000

100,000

300,000

500,000

700,000

900,000

1,100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

Per

cent

age


Q4 2010 Office Property MarketGTA - West


Market Summary

Direct "B"34%

Sublet "B"6%

Direct "C"23%

Sublet "C"1%

Sublet "A"10%

Direct "A"26%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt






Notable Points

• Absorption was negative in GTA West this quarter.

• The availability rate increased by 209 basis points from 10.9% in Q3 2010 to 13.0% in Q4 2010.

• The average asking rate increased by $0.50 to $15.12 in Q4 2010 from $14.61 in Q3 2010.

• There are nine office buildings currently under construction in the GTA West market.

• There is one opportunity for space greater than or equal to 100,000 square feet in the GTA West market.


$15.14

$12.72

$16.03

$17.15

AverageAdditional

84.8%

100.0%

91.4%

63.8%

Direct SpaceRatio

15.2%

0.0%

8.6%

36.2%

Sublet SpaceRatio

$12.84

$10.97

$13.38

$14.88

Average AskingRate

4,288,342

1,054,557

1,786,001

1,447,784

SurveyInventory

09.9%8.7%427 Corridor

06.5%6.5%C

B

A

Class

013.1%12.2%

08.4%6.0%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

6%

12%

18%

24%

30%

36%

42%

48%

Per

cent

age


-110,000

-80,000

-50,000

-20,000

10,000

40,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - 427 Corridor


Market Summary

Direct "A"18%

Direct "B"51%

Direct "C"16%

Sublet "A"10%

Sublet "B"5%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The 427 Corridor market experienced a quarter of negative absorption.

• The availability rate increased by 242 basis points to 9.9% in Q4 2010 from 7.5%; a year over year increase of 113 basis points.


• There are no office buildings under construction in the 427 Corridor market.





$12.62

$12.25

$13.35

-

AverageAdditional

74.2%

95.5%

51.6%

-

Direct SpaceRatio

25.8%

4.5%

48.5%

-

Sublet SpaceRatio

$12.60

$11.80

$14.18

-

Average AskingRate

1,552,778

928,695

624,083

-

SurveyInventory

020.8%16.5%Airport Strip

017.9%17.2%C

B

A

Class

025.0%15.3%

0--

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-10%

0%

10%

20%

30%

40%

50%

60%

Per

cent

age


-30,000

-15,000

0

15,000

30,000

45,000

60,000

75,000

90,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Airport Strip


Market Summary

Direct "B"25%

Direct "C"50%

Sublet "C"2%

Sublet "B"23%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

B C Overall

Dol

lar A

mou

nt





• The Airport Strip market experienced a fourth quarter of negative absorption.

• The availability rate increased 88 basis points to 20.8% in Q4 2010 from 19.9% in Q3 2010; a year over year increase of 310 basis points.


• There are no office buildings under construction in the Airport Strip market.





$12.89

$10.28

$13.46

$13.10

AverageAdditional

81.90%

94.88%

95.27%

71.62%

Direct SpaceRatio

18.10%

5.12%

4.73%

28.38%

Sublet SpaceRatio

$17.97

$11.86

$15.79

$20.80

Average AskingRate

3,845,227

595,912

930,410

2,318,905

SurveyInventory

019.39%16.58%Airport Corp Centre

019.68%18.88%C

B

A

Class

022.41%21.56%

018.10%13.99%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

5%

10%

15%

20%

25%

30%

35%

Per

cent

age


-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

21%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Airport Corporate Centre


Market Summary

Sublet "A"16%

Direct "C"15%

Sublet "C"1%

Direct "B"27%

Direct "A"40%

Sublet "B"1%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B C Overall

Dol

lar A

mou

nt





• The Airport Corporate Centre market experienced a quarter of positive absorption.



• There are no office buildings under construction in the Airport Corporate Centre node.

• There is one opportunity to occupy space of 100,000 square feet or greater.




$12.43

$11.16

$13.55

-

AverageAdditional

96.9%

94.0%

100.0%

-

Direct SpaceRatio

3.1%

6.0%

0.0%

-

Sublet SpaceRatio

$9.92

$8.55

$11.11

-

Average AskingRate

691,422

422,892

268,530

-

SurveyInventory

017.7%17.3%Airport West

014.9%14.2%C

B

A

Class

022.3%22.3%

0--

UnderConstruction


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

Per

cent

age


-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

5%

10%

15%

20%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Airport West


Market Summary

Direct "B"48% Direct "C"

49%

Sublet "C"3%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

B C Overall

Dol

lar A

mou

nt





• The Airport West market experienced a quarter of negative absorption.



• There are no office buildings under construction in the Airport West market.





$13.38

$12.82

$13.57

$15.28

AverageAdditional

84.0%

97.1%

100.0%

44.9%

Direct SpaceRatio

16.0%

2.9%

0.0%

55.1%

Sublet SpaceRatio

$11.74

$10.32

$13.09

$15.12

Average AskingRate

1,435,201

700,149

333,608

401,444

SurveyInventory

025.1%21.7%Dixon Road & Attwell

026.3%25.6%C

B

A

Class

022.6%22.6%

025.1%14.0%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

21%

24%

27%

30%

Per

cent

age


-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

24%

28%

32%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Dixon Road & Attwell


Market Summary

Direct "A"13%

Sublet "A"15%

Direct "B"21%

Direct "C"50%

Sublet "C"1%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B C Overall

Dol

lar A

mou

nt





• The Dixon Road & Attwell market experienced a quarter of negative absorption.



• There are no office buildings under construction in the Dixon Road & Attwell market.





$15.75

$16.75

$14.54

$15.49

AverageAdditional

81.5%

96.3%

94.9%

67.1%

Direct SpaceRatio

18.5%

3.7%

5.1%

32.9%

Sublet SpaceRatio

$17.22

$16.39

$16.34

$18.53

Average AskingRate

3,707,388

770,273

1,479,604

1,457,511

SurveyInventory

010.6%9.0%Miss. City Centre

015.9%15.4%C

B

A

Class

05.1%4.9%

013.5%9.9%

UnderConstruction


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

40%

44%

Per

cent

age


-100,000

-75,000

-50,000

-25,000

0

25,000

50,000

75,000

100,000

125,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Mississauga City Centre


Market Summary

Direct "A"28%

Direct "B"57%

Sublet "B"1%

Sublet "A"14%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B C Overall

Dol

lar A

mou

nt





• The Mississauga City Centre market experienced a quarter of negative absorption.

• The availability rate increased 234 basis points to 10.6% in Q4 2010 from 8.3% in Q3 2010; a year over year increase of 285 basis points.

• The average asking rate for direct space across all office classes increased by $0.11 $17.22 in Q4 2010 from $17.00 in Q3 2010.

• There are no office buildings under construction in the Mississauga City Centre market.





$12.03

$10.09

$13.18

$11.86

AverageAdditional

73.4%

98.0%

80.1%

54.8%

Direct SpaceRatio

26.6%

2.0%

19.9%

45.2%

Sublet SpaceRatio

$13.37

$12.11

$12.14

$16.39

Average AskingRate

2,850,258

560,315

884,108

1,405,835

SurveyInventory

011.1%8.7%Hurontario North

010.4%10.2%C

B

A

Class

015.0%12.6%

08.9%5.7%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-3%

7%

17%

27%

37%

47%

57%

67%

77%

Per

cent

age


-120,000

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Hurontario North


Market Summary

Direct "A"19%

Sublet "B"18%

Direct "C"16%

Sublet "A"16%

Direct "B"31%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

A B C Overall

Dol

lar A

mou

nt





• The Hurontario North market experienced negative absorption this quarter.


• The average asking rate for direct space across all office classes decreased $1.25 to $13.37 in Q4 2010 from $14.63 in Q3 2010.

• There are no office buildings under construction in the Hurontario North market.





$11.82

$11.12

$12.20

-

AverageAdditional

87.3%

86.2%

88.5%

-

Direct SpaceRatio

12.7%

13.8%

11.5%

-

Sublet SpaceRatio

$12.38

$11.74

$12.73

-

Average AskingRate

1,465,538

883,127

421,411

161,000

SurveyInventory

04.6%4.1%Mississauga South

04.1%3.6%C

B

A

Class

07.4%6.7%

0--

UnderConstruction


0

20,000

40,000

60,000

80,000

100,000

120,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Per

cent

age


-10,000

-5,000

0

5,000

10,000

15,000

20,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Mississauga South


Market Summary

Direct "B"41%

Direct "C"47%

Sublet "C"7%

Sublet "B"5%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

B C Overall

Dol

lar A

mou

nt





• The Mississauga South market experienced a third quarter of positive absorption.


• The average asking rate for direct space across all office classes increased $0.43 to $12.83 in Q4 2010 from $11.95 in Q3 2010.

• There are no office buildings under construction in the Mississauga South market.





0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Per

cent

age


-70,000

-20,000

30,000

80,000

130,000

180,000

230,000

280,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

21%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Meadowvale


Market Summary

Direct "A"19%

Sublet "B"9%

Direct "C"17%

Sublet "C"1%

Direct "B"44%

Sublet "A"10%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

A B C Overall

Dol

lar A

mou

nt





$11.60

$10.45

$11.14

$13.67

AverageAdditional

78.7%

93.8%

81.1%

65.4%

Direct SpaceRatio

21.3%

6.2%

18.9%

34.6%

Sublet SpaceRatio

$15.96

$13.50

$14.97

$20.38

Average AskingRate

2,895,879

517,586

991,246

1,387,047

Survey Inventory

376,00012.6%10.5%Meadowvale

013.1%12.5%C

B

A

Class

018.9%16.0%

376,0008.0%5.8%

UnderConstruction


• The Meadowvale market experienced a quarter of negative absorption.

• The availability rate increased by 219 basis points to 12.6% in Q4 2010 from 10.5% in Q3 2010; a year over year decrease of 110 basis points.

• The average asking rate for direct space across all office classes increased by $0.59 in to $15.96 in Q4 2010 from $15.38 in Q3 2010.

• There are two buildings under construction in the Meadowvale area.





$13.17

$14.68

$12.32

$14.60

AverageAdditional

98.3%

95.2%

98.9%

100.0%

Direct SpaceRatio

1.7%

4.8%

1.1%

0.0%

Sublet SpaceRatio

$13.19

$8.43

$15.47

$10.49

Average AskingRate

2,155,730

533,960

1,141,097

480,673

SurveyInventory

122,8955.8%5.7%Toronto West

04.8%4.6%C

B

A

Class

07.6%7.5%

122,8952.9%2.9%

UnderConstruction


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

Per

cent

age


-40,000

-35,000

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Toronto West


Market Summary

Direct "B"68%

Sublet "B"1%

Sublet "C"1%

Direct "A"11%

Direct "C"19%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

A B C Overall

Dol

lar A

mou

nt





• The Toronto West market experienced a quarter of negative absorption.



• There are two office buildings under construction in the Toronto West market.





$9.74

$11.60

$7.08

-

AverageAdditional

92.1%

100.0%

82.8%

-

Direct SpaceRatio

7.9%

0.0%

17.2%

-

Sublet SpaceRatio

$12.85

$13.78

$11.51

-

Average AskingRate

991,559

355,361

536,500

99,698

Survey Inventory

113,22710.3%9.62Brampton

015.6%15.6%C

B

A

Class

08.7%7.5%

113,227--

UnderConstruction


0

20,000

40,000

60,000

80,000

100,000

120,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

-10%

0%

10%

20%

30%

40%

Per

cent

age


-40,000

20,000

80,000

140,000

200,000

260,000

320,000

380,000

440,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Brampton


Market Summary

Direct "C"54%

Sublet "B"8%

Direct "B"38%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

B C Overall

Dol

lar A

mou

nt





• The Brampton market experienced a quarter of negative absorption.



• There are two office buildings currently under construction in Brampton.





$11.46

-

$11.22

$11.55

AverageAdditional

94.9%

0.0%

85.6%

100.0%

Direct SpaceRatio

5.1%

100.0%

14.4%

0.0%

Sublet SpaceRatio

$18.69

-

$16.53

$19.57

Average AskingRate

1,694,719

173,424

623,959

897,336

SurveyInventory

122,89513.8%13.2%Oakville

00.5%0.1%C

B

A

Class

012.4%11.0%

122,89517.3%17.3%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

10%

20%

30%

40%

50%

Per

cent

age

Avail. Direct (sq ft) Avail. Sublet (sq ft) % of Avail. that is Sub

-100,000

-50,000

0

50,000

100,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

Per

cent

age

Net Absorption (sq ft) Availability Rate (%) Vacancy Rate (%)

Q4 2010 Office Property MarketGTA - West - Oakville


Market Summary

Sublet "B"4%

Direct "A"68%

Direct "B"28%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

A B Overall

Dol

lar A

mou

nt





• The Oakville market experienced a quarter of negative absorption.

• The availability rate increased by 458 basis points to 13.8% in Q4 2010 from 9.2% in Q3 2010; a year over year decrease of 198 basis points.


• There are three office buildings under construction in the Oakville market.

• There are no opportunities to occupy space of 100,000 square feet or greater.




$9.81

$6.04

$9.88

$10.76

AverageAdditional

83.9%

98.6%

85.2%

80.4%

Direct SpaceRatio

16.1%

1.4%

14.8%

19.6%

Sublet SpaceRatio

$15.49

$12.55

$11.92

$17.01

Average AskingRate

2,868,012

824,357

661,835

1,381,802

SurveyInventory

012.8%11.1%Burlington

06.8%6.7%C

B

A

Class

08.0%7.0%

018.6%15.7%

UnderConstruction


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

3%

6%

9%

12%

15%

18%

21%

24%

Per

cent

age


-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Squ

are

Feet

0%

2%

4%

6%

8%

10%

12%

14%

16%

Per

cent

age


Q4 2010 Office Property MarketGTA - West - Burlington


Market Summary

Direct "C"15%

Direct "A"57%

Sublet "A"14%

Direct "B"12%Sublet "B"

2%


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

A B C Overall

Dol

lar A

mou

nt





• The Burlington market experienced a quarter of negative absorption.



• There are no office buildings under construction in Burlington.





Vacancy Rate:- The Vacancy Rate is the amount of vacant space divided by the respective areas inventory.- Vacant space is physically unoccupied and available for either head lease or sublease.

Availability Rate:- The Availability Rate is the amount of immediately available space divided by the respective areas inventory. - Available space is space that is being marketed as immediately available for lease or sublease, regardless of whether it is

vacant or occupied.

Direct Space Ratio / Direct Availability:- The percentage of Available space which is being marketed as a direct lease

Sublet Space Ratio / Sublet Availability:- The percentage of Available space which is being marketed as a sublease

Net Absorption:- Net Absorption is the change in occupied space from one period to the next

Glossary

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal, or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Limited, Real Estate Brokerage 201142www.dtzbarnicke.com

DisclaimerThis report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, DTZ Barnicke can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ Barnicke.

© DTZ Barnicke Limited, Real Estate Brokerage 2010

q4 2010 gta office report dtz barnicke

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