Colliers International toronto commercial real estate report q3 2014

1. GTA
Office Market
Report
THIRD QUARTER 2014
Accelerating success.

2. MARKET OVERVIEW
Toronto’s central markets are continuing to exhibit strong tenant
demand, specifically, the Downtown market where vacancy is
still on the decline, we are reporting 3.5% this quarter. Deal
activity is up and deals are being done in large pockets of
upcoming vacant space as well as in upcoming new builds. In the
Suburban markets, we are seeing a very different trend with
vacancy is rising in every major market since the last quarter.
The high vacancy rates in some suburban areas connect to the
pattern of employers seeking central locations where their talent
pool is choosing to walk or commute to work. In addition, traffic
congestion and long commute times in parts of the GTA, have
been another significant driver to workforces taking up residence
in centrally-located hubs in and around the city. Companies are
beginning to address the link between heathy bottom lines and
ease of accessibility for their employees.
INVESTMENT MARKET
The trend of limited available large-scale office product continues
throughout the Toronto market. Only a handful of larger deals
have made it to market this year, with 180 Wellington Street West
being the notable deal for Q3. A stable REIT market has caused
constraints on the supply of purchasing opportunities which has
buoyed aggressive pricing within the GTA. Assets located in the
Downtown core are seeing aggressive lifts in terms of valuations,
while potential vendors of non-core assets continue to look for
similar figures to Q2. This has only added to lack of deals being
completed and additional pushback from buyers for non-core /
suburban product. Investors are not willing to apply value to
vacant assets in the suburban markets and continue to stay
HISTORICAL PERFORMANCE AND FORECAST
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
(500,000)
THIRD QUARTER 2014
2014 Q1 2014 Q2 TREND
Office Inventory 184,344,128 184,381,007
Net Absorption (66,258) (321,035)
Vacancy Rate 6.1% 6.3%
Availability Rate 10.2% 10.3%
Average Asking Net Rent $18.63 $18.11
Average Additional Rent $16.94 $15.66
Average Asking Gross Rent $35.56 $33.77
*There are 2,044 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.
focused on transit-oriented assets. Development of new office
product is filling the current void for opportunity-starved
investors, but quality sites and large-lead tenants remain scarce.
CURRENT TENANT DEMAND
The financial services sector is leading the pack with regards to
demand for office space this quarter. Banks, investment
companies and credit rating service providers are the leading
tenants looking for large pockets of space, mainly in the Downtown
market. The strength in the GTA housing market, and the upward
momentum in prices, has provided a boost to consumer-oriented
industries as well as the financial services sector. The second
largest industry demanding space is the tech sector. The tech
industry is continuing to gain momentum within the Toronto
market as international companies are beginning to view Canada
as a viable expansion opportunity.
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
(1,000,000)
2010 Q3
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
5%
5%
2015 Q1
2015 Q2
Net Absorption New Supply Vacancy Rate
Financial Services
Technology/Software/Internet
Media/Marketing/Advertising
Architectural/Engineering
Wholesale Trade
Legal Services
Institutional
Retail Trade
Asset Management/Pension
Other*
27%
19%
11%
10%
7%
4%
3%
9%
*
SEPTEMBER 2014
3,129,000 SF
Other includes Security Services, Automotive Manufacturing/Printing, Communications/IT,
Construction/Mining, Insurance, Hospitality, Travel Services, Consulting
OFFICE MARKET SUMMARY
GTA MARKET OVERVIEW

3. TABLE OF
CONTENTS
MARKET SUMMARIES
Downtown 1
Midtown 2
Central North 3
Central East 4
GTA East 5
GTA North 6
GTA West 7
GLOSSARY 8
FORECAST ASSUMPTIONS 8

4. Yonge St
Bloor St
Dufferin Bay Bloor / Yonge
TORONTO
13
12 148 9
6 3
16
Union
Wellesley
College St
Dundas
Castlefrank
University Ave
Queen’s Park
Dundas St
Spadina Ave
Queen St
King St
Parliament St
4
Dufferin St
1
5
2
11
Gardiner Expwy
7
15
10
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
OFFICE MARKET SUMMARY
DOWNTOWN
NOTABLE NEW SUPPLYPCOMING NEW SUPPLY
ADDRESS STATUS COMPLETION DATE CLASS FLOORS OFFICE AREA (SF) DEVELOPER
10. 88 Queens Quay Under Construction Q4 2014 AAA 30 933,020 Oxford Properties Group
11. 120 Bremner Boulevard Under Construction Q4 2014 A 30 732,480 GWL Realty Advisors Inc.
12. 134 Peter Street Under Construction Q2 2015 A 17 299,178 Allied Properties REIT
13. 22 Adelaide Street West Under Construction Q1 2016 AAA 44 1,020,000 Brookfield Financial Real Estate Group
14. 351 King Street East Under Construction Q2 2016 A 17 500,000 First Gulf Corporation
15. 1 York Street Under Construction Q3 2016 A 35 800,000 HOOPP / Menkes
16. 100 Adelaide Street W Under Construction Q2 2017 AAA 40 905,722 Oxford Properties Group
1
TRENDS
Notable Lease Notable Sale New Supply
Lake Ontario
HISTORICAL PERFORMANCE AND FORECAST
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-200,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %
-200,000
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
Net Absorption New Supply Vacancy Rate %
The Downtown market is continuing to see a decline in vacancy
this quarter. Leasing activity has been strong and leases are being
done in large blocks of space in existing office inventory in
addition to properties that are still under construction. The
Financial Core continues to command high rental rates and Class
A and AAA Tenants. However, although new supply is delivered
to the Downtown South market in the coming months, vacancy is
expected to rise in Financial Core as big block tenants, such as
Marsh Mercer, take space southward. With roughly 5.19 million
square feet of office development currently under construction in
the Downtown market, we will see landlords of older assets begin
to upgrade their properties, seek sustainability through LEED or
BOMA certifications and compete for deals on price.
»» RBC WaterPark Place and Bremner Tower are set to be completed in
Q4 2014 and will deliver more than 1.6 million square feet of office
inventory to the Downtown South market. Both new towers are
approximately 80 percent preleased.
»» New builds are experiencing interest from tenants who are located in
B class assets in addition to tenants from suburban markets.
»» There has been growth in small to mid-sized tenants who are
increasing their space requirements.
»» Downtown West fringe office assets are experiencing significant
increases in taxes and operating costs beyond inflation. This rise in
additional cost could have a substantial impact on net rents for
properties in this market.
2014 Q1 2014 Q2 TREND
Office Inventory* (SF) 70,514,344 70,479,113
Net Absorption (SF) 134,792 107,423
Vacancy Rate 3.6% 3.5%
Availability Rate 8.4% 7.7%
Average Asking Net Rent** $26.18 $26.83
Average Additional Rent $23.81 $24.61
Average Asking Gross Rent** $49.99 $51.45
*There are 488 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. National Bank Headlease 130 King St West 130,000
2. Amazon Headlease 120 Bremner Blvd 108,000
3. Scotiabank Headlease 1 Adelaide St East 56,980
4. Valencia Ventures Headlease 65 Queen St West 21,940
5. BDO Canada LLP Headlease 123 Front St West 17,347
NOTABLE SALE TRANSACTIONS
PURCHASER PRICE ADDRESS APPROX.
SIZE (SF)
6. Allied Properties REIT $100,000,000 555 Richmond St West 297,294
7. 25 Liberty Management $16,351,000 25-35 Liberty St
& 51-65 Jefferson Ave 70,000
8. Bel-Three Property
Management $16,000,000 53 Ontario St
& 102 Berkeley St 48,744
9. Youth & Phil. Initiative $9,500,000 573 King St East 18,150

5. 2
OFFICE MARKET SUMMARY
MIDTOWN
Bloor St
Dundas St
Queen St
Eglinton Ave
Lansdowne Ave
Yonge St
Bayview Ave
Dufferin St
Lawrence Ave
Gardiner Expwy
31
2
TORONTO
NOTABLE SALE TRANSACTIONS
TENANT PRICE ADDRESS APPROX.
SIZE (SF)
1. Ponte Gadea Group $254,500,000 150 Bloor St West 274,329.00
2. Oxford/CT REIT $93,620,439 "Canada Square" 843,675.00
3. First Capital Realty $8,000,000 30/30A Hazelton
Avenue 12,780.00
HISTORICAL PERFORMANCE AND FORECAST
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
200,000
150,000
100,000
50,000
0
-50,000
-100,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %
TRENDS
Notable Sale
The Midtown market is seeing an increase in availability since last
quarter, which has been impacted by the Manulife space at 250 Bloor
Street East coming onto the market. There are currently two large
space opportunities of more than 30,000 square feet in the Yonge and
Bloor submarket. Although there is healthy leasing activity in small-to
mid-sized space opportunities, big block leasing velocity is down in
the Midtown market. Large tenants are choosing to take space
southward, such as LinkedIn vacating its space at Yonge and Eglinton
this quarter to relocate to a new office Downtown.
»» There are currently 26 active condominium development projects
underway in the Yonge-Bloor submarket. Eight of these
developments are currently under construction.
»» Yonge-Eglinton has seen a slowdown in transaction volume this
quarter. Tenants looking to relocate to Yonge-Eglinton have been
deterred by the construction of the Crosstown light rail which has
caused traffic congestion in the area.
2014 Q1 2014 Q2 TREND
Office Inventory* (SF) 17,447,313 17,435,725
Net Absorption (SF) (22,900) 38,411
Vacancy Rate 4.8% 4.6%
Availability Rate 7.8% 8.4%
Average Asking Net Rent** $18.43 $18.78
Average Additional Rent $19.11 $19.43
Average Asking Gross Rent** $37.54 $38.21
*There are 208 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.

6. OFFICE MARKET SUMMARY
CENTRAL NORTH
Although vacancy rates continue to remain low in the Central
North market, this market has seen a dramatic slowdown in
transaction volume especially in the North Yonge Corridor.
Availability in the sublet market remains high with 32.2 percent
of available space being sublet. Landlords competing in the
sublease market are being directly affected by the slowdown in
the market. For tenants looking to relocate to the Central North
market, this is an ideal time to secure an aggressively priced
deal on a sublease space.
»» The types of deals taking place this quarter have most commonly
been short-term renewals as tenants are choosing to wait for the
market to change and bring new space and price opportunities.
3
Finch Ave
Sheppard Ave
Highway 401
Lawrence Ave
Highway 400
Yonge St
Sheppard
Finch
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. Hagger Canada Co. Headlease 777 Supertest Road 23,178
2. Bluecat Networks Inc. Headlease 4101 Yonge Street 20,380
NOTABLE NEW SUPPLY
ADDRESS STATUS CLASS FLOORS TOTAL OFFICE AREA (SF) DEVELOPER
3. 2 Anndale Drive Under Construction A 10 210,000 Hullmark/Tridel
4. 4050 Yonge Street Planned 7 367,000 Build Toronto Inc.
5. 4800 Yonge Street Planned A 25 393,000 Oxford Properties Group
Bayview Ave
Keele St
Steeles Ave
Eglinton Ave
Jane St
Bathurst St
Old Cummer
Oriole
York University
5
Weston
4
1
2
3
TORONTO
VAUGHAN
Lawrence
Downsview
Lawrence West
Eglinton West Eglinton
HISTORICAL PERFORMANCE AND FORECAST
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
250,000
200,000
150,000
100,000
50,000
-
(50,000)
(100,000)
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %
TRENDS
Notable Lease New Supply
2014 Q1 2014 Q2 TREND
Office Inventory 11,000,461 11,000,461
Net Absorption 7,608 10,543
Vacancy Rate 2.4% 2.3%
Availability Rate 6.1% 5.4%
Average Asking Net Rent $16.56 $17.06
Average Additional Rent $19.54 $19.88
Average Asking Gross Rent $36.10 $36.94
*There are 112 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.

7. 4
OFFICE MARKET SUMMARY
CENTRAL EAST
Highway 407
Eglinton Ave
Steeles Ave
Finch Ave
Highway 404
Yonge St
Victoria Park Ave
3
Kennedy Ave
Sheppard Ave
Highway 401
Markham Rd
6
Keele St
1
2
4
5 SCARBOROUGH
TORONTO
Finch
Kennedy
Union
Lake Ontario
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. Lenovo Headlease 55 Idema Road 36,000
2. Hidi Rae Consulting
Engineers Inc. Headlease 156 Gordon Baker Road 24,069
NOTABLE SALE TRANSACTIONS
PURCHASER PRICE ADDRESS APPROX.
SIZE (SF)
3. 7300 Warden Business
Park Inc. $23,500,000 7300 Warden Avenue 141,296
Leasing activity within the Central East market remains steady,
with reported vacancies shifting downward since Q2 2014.
Notably, Woodbine-Steeles and Consumers Road submarkets
have seen heightened leasing activity and positive absorption
this quarter. Deals are taking place in small to mid-sized space
opportunities.
»» The Toronto East market remains tight and has seen minimal
leasing activity with no reported absorption since Q2 2014.
However, with a reduction in the amount of available B and C
class space this quarter, we expect to see vacancies get filled in
the coming months.
NOTABLE NEW SUPPLY
ADDRESS STATUS CLASS FLOORS TOTAL OFFICE AREA (SF) DEVELOPER
4. 1 Steelcase Road West Planned 18 400,500 Liberty Development Corporation
5. 101 Gordon Baker Road Planned A 12 250,000 Osmington Inc.
6. 3377 Steeles Avenue East Planned A 6 280,000 Bentall Real Estate Services
HISTORICAL PERFORMANCE AND FORECAST
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
400,000
300,000
200,000
100,000
0
-100,000
-200,000
-300,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %
TRENDS
Notable Lease Notable Sale New Supply
2014 Q1 2014 Q2 TREND
Office Inventory 17,502,819 17,560,537
Net Absorption (20,447) 49,893
Vacancy Rate 8.3% 8.0%
Availability Rate 10.2% 10.5%
Average Asking Net Rent $12.99 $13.15
Average Additional Rent $14.60 $14.63
Average Asking Gross Rent $27.59 $27.78
*There are 213 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.

8. OFFICE MARKET SUMMARY
GTA EAST
There has been a slowing in leasing activity in the GTA East
market. The Pickering and Oshawa submarket reported an 8.6
percent vacancy in Q2 2014. Since then, we have seen a
significant jump in vacancy up to 11.4 percent this quarter. The
two properties: 1600 Champlain Avenue and 2 Simcoe Street
South directly affected the increase in vacancy within the
Pickering and Oshawa submarket as both properties had large
vacancies this quarter.
»» NERs remain stagnant within this market due to a slowing of
leasing activity.
5
Taunton Rd
Kingston Rd
Highway 407
Brock Rd
Harmony Rd
Steeles Ave
Sheppard Ave
Highway 401
Scarborough
Town Centre
Stouffville
Pickering Oshawa
Markham
1
2
TORONTO
OSHAWA
PICKERING
Lake Ontario
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. Public Works and Government
Services Canada Headlease 55 Town Centre
Court 17,360
NOTABLE NEW SUPPLY
ADDRESS STATUS CLASS FLOORS TOTAL OFFICE AREA (SF) DEVELOPER
2. 65 Bayly Street West Under Construction 2 31,500 Medallion Corporation
HISTORICAL PERFORMANCE AND FORECAST
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
250,000
200,000
150,000
100,000
50,000
0
-50,000
-100,000
-150,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %
TRENDS
Notable Lease New Supply
2014 Q1 2014 Q2 TREND
Office Inventory 6,788,611 6,788,611
Net Absorption 33,517 (41,201)
Vacancy Rate 8.6% 9.2%
Availability Rate 7.3% 9.0%
Average Asking Net Rent $12.38 $11.91
Average Additional Rent $15.32 $14.40
Average Asking Gross Rent $27.70 $26.30
*There are 100 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.

9. 6
OFFICE MARKET SUMMARY
GTA NORTH
Availability within the GTA North market has risen since last
quarter – B class space in particular has jumped from 10.2
percent in Q2 2014 to 17.7 percent this quarter. With a rise in the
amount of available space in the GTA North market, leasing
activity has increased, particularly within the Highway 404 and
Highway 407 submarket. This submarket has experienced an
increase in transaction volume with properties leasing up large
amounts of space. Notably, 125 Commerce Valley Drive has done
80,000 square feet in deals within the last three months.
TRENDS
»» Technology companies remain major occupiers within the GTA
North market.
»» While there is a trend for large multinational companies like Coca
Cola and Apple taking space in Downtown market, there is still
value and demand for office space located near highways in
suburban markets. Seasoned employees and senior executives
with established lifestyles in the suburbs are opting to drive home
from work rather than commute.
Wellington St
Warden Ave
9 7 11
Notable Lease Notable Sale New Supply
2014 Q1 2014 Q2 TREND
Office Inventory 14,237,090 14,272,800
Net Absorption (45,745) (88,532)
Vacancy Rate 7.8% 8.4%
Availability Rate 12.3% 14.0%
Average Asking Net Rent $16.24 $15.93
Average Additional Rent $11.69 $11.87
Average Asking Gross Rent $27.93 $27.80
*There are 224 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.
Newmarket
Stouffville
Richmond
Hill
King City
Highway 407
Yonge St
Stouffville Rd
Steeles Ave
King Rd
McCowan Rd
Highway 27
Davis Dr
1 2 3
4 5
6
10
8
VAUGHAN 12
RICHMOND HILL
MARKHAM
AURORA
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. Morrison Hershfield Headlease 125 Commerce Valley
Drive West 50,484
2. Leisureworld Senior
Care Corporation Headlease 302 Town Centre
Boulevard 27,950
3. Lexmark Headlease 125 Commerce Valley
Drive West 24,000
4. OnX Inc. Headlease 165 Commerce Valley
Drive 16,000
NOTABLE SALE TRANSACTIONS
PURCHASER PRICE ADDRESS APPROX.
SIZE (SF)
5. McCormick Holdings
Canada Inc. $10,600,000 80 Micro Court 84,364
6. Mohawk Medical
(Mohawk Vaughan Inc.) $24,250,000 8333 Weston Road 60,000
NOTABLE NEW SUPPLY
ADDRESS STATUS CLASS FLOORS TOTAL OFFICE AREA (SF) DEVELOPER
7. 9131 Keele Street Completed B 1 45,104 Melrose Investments Incorporated
8. KPMG Tower - VMC Under Construction A 15 300,000 Calloway REIT/Smart Centres
9. 3100 Rutherford Road Under Construction 4 64,769 Lorwood Holdings Inc. - Elmgate Holdings
10. 180 Bass Pro Mills Drive Under Construction 3 39,000 The Typhon Group Ltd.
11. 2833 16th Avenue Planned A 60 9,000,000 Cadillac Fairview
12. 2320 Steeles Avenue West Planned A 8 232,000 The Milestone Group
HISTORICAL PERFORMANCE AND FORECAST
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
250,000
200,000
150,000
100,000
50,000
0
-50,000
-100,000
-150,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate %

10. OFFICE MARKET SUMMARY
GTA WEST
7
Kipling
Georgetown
Milton
Burlington
Lake Ontario
QEW
Highway 407
7 13
8110112 9 2
Highway 403
Highway 427
Highway 10
Highway 401
Highway 6
1
3
4
5
6
MISSISSAUGA
TORONTO
BRAMPTON
OAKVILLE
MILTON
NOTABLE SALE TRANSACTIONS
PURCHASER PRICE ADDRESS APPROX.
SIZE (SF)
6. Scepter Corporation
(Shi Properties Inc.) $6,400,000 1060 Speers Road 27,200
The GTA West market saw a rise in vacancy since last quarter.
The Airport West submarket was the largest contributor to the
rise in vacant space where Blackberry vacated approximately
238,800 square feet of space at 4701 and 4715 Tahoe Boulevard
causing significant negative absorption this quarter. Although
the velocity of deals taking place has slowed since last year,
there is still a concentration of markets that are seeing
momentum in lease deals and continued growth through
developer interest. These markets are Meadowvale, Sheridan-
Winston and Oakville. Notably, all three of these markets are
directly intersecting with at least two major highways.
TRENDS
»» Developer interest remains strong in the GTA West where there
are numerous office developments totaling an estimated 1,175,520
square feet of new inventory to be delivered to the market in the
coming years.
»» There are several large RFPs in the market between 50,000 and
150,000 square feet.
Notable Lease Notable Sale New Supply
NOTABLE LEASE TRANSACTIONS
TENANT TYPE ADDRESS APPROX.
SIZE (SF)
1. Newsprint Productions Headlease 2200 Islington Ave 47,517
2. PWGSC Headlease 2 Robert Speck Parkway 37,266
3. AV Net Headlease 6950 Creditview Rd 27,000
4. IPEX Headlease 1425 North Service Rd 22,800
5. Bentley Canada Inc. Headlease 5046 Mainway Drive 19,350
2014 Q1 2014 Q2 TREND
Office Inventory 46,853,490 46,843,760
Net Absorption (153,083) (397,572)
Vacancy Rate 9.6% 10.5%
Availability Rate 14.5% 15.2%
Average Asking Net Rent $15.27 $15.50
Average Additional Rent $12.71 $11.22
Average Asking Gross Rent $27.98 $26.72
*There are 699 office buildings surveyed in the GTA ** Average Rents are calculated using a weighted average.
NOTABLE NEW SUPPLYPCOMING NEW SUPPLY
ADDRESS STATUS CLASS FLOORS TOTAL OFFICE AREA (SF) DEVELOPER
7. 7025 Langer Drive Completed A 3 64,613 GWL Realty Advisors Inc.
8. 6600 Financial Drive Completed B 44,960 2725312 Canada Inc. Bentall Capital
9. 4980 Tahoe Boulevard Under Construction A 6 202,000 Metrus Properties Ltd.
10. 60 Standish Court - West Tower Under Construction A 7 179,000 Orlando Corporation
11. 60 Standish Court - East Tower Under Construction A 6 156,000 Orlando Corporation
12. 1 Prologis Boulevard Under Construction A 5 146,863 Healthcare of Ontario Pension Plan
13. 5015 Spectrum Way Under Construction A 5 134,000 HOOPP-Healthcare of Ontario Pension Plan
HISTORICAL PERFORMANCE AND FORECAST
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
1,000,000
800,000
600,000
400,000
200,000
0
-200,000
-400,000
-600,000
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Net Absorption New Supply Vacancy Rate

11. Weighted Average Asking Net Rent:
The dollar amount requested by landlords for direct available space, not including subleases, expressed in dollars per square
foot per year.
Availability:
The amount of available space and available space to be delivered to the market within six months, divided by the market’s
inventory base including those future deliveries. Available space is space that is available for lease, and may or may not be
vacant.
Net Absorption:
The net change in physically occupied space between the current measurement period, and the last measurement period. It
can be either positive or negative.
Vacancy:
The amount of vacant space divided by the building inventory base. Vacant space is physically unoccupied, and it may or may
not be available for lease or sublease. This is physical vacancy. It is not determined whether a tenant is paying rent on the
space.
8
OFFICE MARKET SUMMARY
GLOSSARY
OFFICE MARKET SUMMARY
FORECAST ASSUMPTIONS
Absorption was calculated using moving averages of historical absorption data and supplemented with incoming new speculative
and build-to-suit developments.

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