CBD asking rents continue to rise as availability tightens further
As availability continues to tighten in Toronto’s Central Business District (CBD), average asking rents are pushing higher. Gross asking rents in the CBD continued an upward trend during the third quarter, now averaging $63.69 per square foot (psf) – a 7.5% increase year over year. Rents are increasing as availability continues to compress and competitive options for large users have become scarce. Availability in the CBD ended Q3 at just 3.7% compared to 6.2% one year prior. Outside the CBD, rental rate changes were more muted than those experienced in the CBD. Gross rents outside of the CBD averaged $32.69 psf in the third quarter – a 2.0% increase year over year, and availability decreased to 9.5%, from 11.7% one year prior. Year over year, asking rents improved for tenants in the Toronto East submarket, with rates decreasing 80 basis points ($29.86 psf).