The Greater Toronto Area (GTA) has adopted a new saying for commercial office space: build, and they will come. Q1 2019 marks the largest amount of office developments that is either planned or under construction in the history of the GTA. The GTA has over 20.9 million SF of office developments that are pre-leasing, under construction, or under renovation to accommodate the growing demand the GTA has to offer to local and international users between now and 2024. This is a significant contrast to the 6.2M SF of office developments under construction in Q1 2018.
What’s more, the GTA has another 22M SF ready in planned office supply that has the potential to accommodate a demand that supersedes the already committed supply. With a considerable amount of pre-leasing activity occurring this quarter, the GTA is well-positioned to absorb the new supply with strong occupancy rates, as new supply comes online in the coming quarters.