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Greater Toronto Area Office Insight - Q3 2010

Although economic conditions are slowly improving, the real estate environment is still marked by caution.  Vacancy has dropped to below 10% for the first time in over a year.  Landlords are consequently raising rents, which are currently at near-bottom level.  Tenants who can lock in current rates should do so.

Shortages are most acute for large block spaces.  Occupiers needing them have few choices, a condition not lost on landlords.  The shortage should ease up over the next 24 months from new construction supply.  Upcoming facilities include the 1.3 million s.f. Airport Corporate Centre, and the 700,000 s.f. Bremmer Tower downtown.

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