Bay Street in Toronto Named the Most Expensive Street for Office Space

Jones Lang LaSalle revealed the top seven most expensive streets for office space* in Canada.  Toronto’s Bay Street comes in at number one with average rents running at around $68.91 per square foot (psf) and the top rent on the street comes in at $82.28 psf, a significant 178 percent higher than the average office rents in the rest of the city.  Eighth Avenue SW in Calgary follows with average office rents of $55.33 psf, more than 62 percent higher than average rents across the city. Burrard Street in Vancouver lands in third place where average rents are $54.75 psf and the top rent on the street is $65.41 psf.

“It is clear from our ranking that companies are keen to pay a premium to be in the most prestigious locations,” said Brett Miller, President, Jones Lang LaSalle Canada. “Our figures also prove that demand is not abating and rents have moved up year-over-year in every city confirming the strength of the Canadian office market.” (See Fig.1)

According to Jones Lang LaSalle’s second annual ranking, Bay Street retained its poll position while  Ottawa’s Albert Street took second place in 2011, this year it fell to fourth place.  Calgary’s 8th Avenue SW made its debut this year to reach second on the list.  Last year, Calgary’s 3rd Avenue took fourth place. Réne-Lévesque Boulevard West in Montreal came in sixth position falling from last year’s fifth place which featured the city’s McGill College Street.

“While some of these streets command high-end rents, compared to our global counterparts, we look reasonable,” said Miller. “For example, 23 Saville Row in London commands an eye-watering $220 psf while in New York, 667 Madison asks $144.50 psf.  Singapore follows suit with rents at Ocean Financial Center in Raffles Place offering a full service rent of $105.00 psf.”

 

Fig 1. The Top Seven Most Expensive Streets for Office Space in Canada**:

 

2012 City Rank

City

Street

Avg. Street Rent

Top Street Rent

Avg. Market Rent

Difference Between Market Avg. and Street Avg.

2011 City Rank

2011 Avg. Most Expensive Street Rent

2011 Top Street Rent

1

Toronto

Bay Street

$68.91

$82.28

$29.56

133%

1

$52.09

$78.19

2

Calgary

8th Avenue SW

$55.33

$76.50

$34.00

63%

4

$49.94

$54.19

3

Vancouver

Burrard Street

$54.75

$65.41

$32.29

70%

3

$48.88

$61.80

4

Ottawa

Albert Street

$53.18

$53.18

$30.26

76%

2

$47.51

$52.97

5

Edmonton

101st Street NW

$49.40

$55.25

$29.99

65%

6

$41.05

$53.39

6

Montreal

Réne-Lévesque Boulevard West

$46.46

$56.19

$26.84

73%

5

$38.82

$44.95

7

Halifax

Upper Water Street

$35.57

$35.78

$25.87

38%

7

$33.65

$34.31

 

 

 

                     

 

* The rental figures reflect the highest office rents in each individual market,based on average gross rents from participating buildings.

** The rental information is Jones Lang LaSalle's proprietary data and quarterly review of the top office markets across Canada. This data reflects Q3 2012.

 

Jones Lang LaSalle has operated in Canada for more than a decade. With its Canada headquarters in Toronto, the firm also operates in Mississauga, Montreal, Ottawa, Vancouver and Calgary. Jones Lang LaSalle offers tenant and landlord representation, project and development services, investment sales, mobile engineering services, corporate retail solutions and integrated facilities management services to owners and tenants in Canada. The firm manages more than 30 million square feet of facilities across Canada.

on November 29, 2012