Search
  • demitryomrin

2nd Class Space Pays a Price

Toronto office leasing market has shifted with significant drop in large transaction deals since the onset of COVID-19. During the course of our work in our office we have noticed more recent lease transactions are undisclosed. Traditionally, this signals concessions being made by landlords, which they understandably do not want revealed to the market. When markets shift, lower tier assets at times are more at risk than top tier product. For example, if an office tenant is in B class office space and rental rates drop enough, they may be able to upgrade to A class space since the B rate they were paying now buys into A space. Certainly there is more risk at this time due to many unknown variables. The degree to which this manifests is however still uncertain. #recg #valuations #commercialrealestate #commercialvaluations #torontoofficeleasing


https://product.costar.com/home/news/shared/1842177323?utm_source=costar&utm_medium=email&utm_campaign=costar-national-newsletter&utm_content=p2

3 views0 comments

Recent Posts

See All

MARKET UPDATE:

It seems the latest on the residential market just in is that there are less bidding wars and frantic buying as was the case not long ago. Have not seen this manifest into lower valuations as of yet

FEDERAL BUDGET & REAL ESTATE MARKET

There was considerable anticipation leading up to yesterdays Federal budget unveiling. Many expected that the Fed's would resort to some invasive measures in light of the red hot real estate market. A

SELLERS ARE BUYERS & BUYERS ARE SELLERS

There has been much talk as of late about interest rate trends. Interest rates have been temporarily and unrealistically low due to the impact of the pandemic. This has caused a frenzy among both sel