Cadillac Fairview to Go Ahead with Building Project Despite Any Pre-Leasing
Wednesday Mar 08th, 2017Share
You would think with all the talk about accessible real estate in Toronto that a brand new development project in the downtown core would be highly sought-after and fill vacancies quickly. That said, a development project downtown by Cadillac Fairview has found itself in the position that it will be breaking ground without any pre-leasing.
The 32-storey building will be located at 16 York St. and feature 879,000sqft of available space. Although the project remains fully vacant, Toronto has one of the lowest vacancy rates in North America at 4%, and specifically, the South Core, where the building will be located, has an even lower vacancy rate of 1.5%. These trends suggest that while the tower is moving forward without any pre-leasing for now, it will only be a matter of time before the spaces are filled.
Executive vice-president of development at Cadillac Fairview, Wayne Barwise, believes that there are many tenants in Toronto actively looking for new properties, including Cadillac Fairview's existing tenants. With the prime location of the tower at 16 York, he suggests that tenants will flock to take advantage of the close proximity to highways, transit, and local attractions. Due to the nature of Toronto's real estate market, "if you build it, they will come". Barwise made it clear however, that this move by Cadillac Fairview of building without pre-leasing is "not a policy shift, just a rare set of compelling market conditions".
While Cadillac Fairview says that this is highly unusual, they plan to begin building on July 1st and expect to be done by June 2020.