Comments on: Canadian Retail Rents Are Dropping, But The Cost of Office Space Hits A High https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/ Canada’s Fastest Growing Real Estate News Source Thu, 25 Feb 2021 23:31:11 +0000 hourly 1 By: Rob https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/#comment-68721 Thu, 25 Feb 2021 23:31:11 +0000 https://betterdwelling.com/?p=15791#comment-68721 CBRE’s Real Estate Market Outlook;
Toronto office vacancies will rise to 12.4 per cent up from 7.2 per cent in 2020 and 2.2 per cent in 2019. An increase of over 450 per cent in just two years.
Stats can has prices increasing WTF
Pandemic predictions have been bullshit for a year
However, I predict post-covid 50% of forecasters will be wrong 😀

]]> By: I will never believe data from Canada https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/#comment-68714 Thu, 25 Feb 2021 21:48:34 +0000 https://betterdwelling.com/?p=15791#comment-68714 where are these numbers coming from?

CBRE and Cushman have sublease reports out showing the highest jump in sublease availability since the financial crisis. 4 or 5 mill sf……

landlords are scared they are going to have to compete with these on average lower rate options, the longer they sit….

NER’s are lower pre covid to post. I just did a deal 12% lower in north Toronto. Reason why rates arent collapsing is because the landlords are offering greater inducements. I wonder if free rent or tenant allowance show up on all these balance sheets =)

landlords asking for 3-4 months deposit now.

depending on the bank, banks arent giving as much credence to tenants as of late. Especially those who needed government hand outs. and if they are open, they want everything and the kitchen sink for documentation. dont believe me go ask a bank for a commercial loan for a property. if its vacant they will laugh you out.

depending on which agent you ask (no residential please) lol office lease velocity is down 40% – 60%

]]> By: LT https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/#comment-68709 Thu, 25 Feb 2021 20:12:35 +0000 https://betterdwelling.com/?p=15791#comment-68709 In reply to David Chan.

Leases have value, because they’re locked in. Renewing now at inflation is better than actually renewing at a higher rate. Even the positive numbers would be negative if you adjust for inflation.

]]> By: David Chan https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/#comment-68708 Thu, 25 Feb 2021 20:06:21 +0000 https://betterdwelling.com/?p=15791#comment-68708 In reply to LT.

Lock in rates?

]]> By: LT https://betterdwelling.com/canadian-retail-rents-are-dropping-but-the-cost-of-office-space-hits-a-high/#comment-68707 Thu, 25 Feb 2021 19:55:15 +0000 https://betterdwelling.com/?p=15791#comment-68707 This is going to be bad news for little guys trying to lock in rates. Big companies are selling off their leases, because they’re not sure how much they’ll need.

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