TORONTO DOWNTOWN MARKET SURVEY Existing and Future Office Availabilities 2017-2022 Contiguous Blocks Of Space > 40,000 Sq. Ft. March 2, 2018 Prepared For: Prepared By: James Butchard Vice President Advisory & Transaction Services 416 815 2361 James.butchard@cbre.com This disclaimer shall apply to CBRE Limited, Brokerage, and to all other divisions of the Corporation ( CBRE ). The information set out herein (the Information ) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. * Sales Representative
TABLE OF CONTENTS 1. Existing Office Developments > 40,000 sq. ft Availabilities Map Summaries of Availabilities 2. Developments Under Construction Developments Map Summaries of Developments 3. Proposed Office Developments Developments Map Summaries of Proposed Developments 2
Existing Office Developments > 40,000 sq. ft. 3
TORONTO DOWNTOWN Availabilities Map Existing Office Developments > 40,000 sq. ft. LEGEND 4
TORONTO DOWNTOWN Existing Office Availabilities Contiguous Blocks of Space > 40,000 sq. ft. EY TOWER 100 ADELAIDE STREET WEST 325 FRONT STREET WEST 1266 QUEEN STREET WEST Building Owner/Manager Oxford Properties Group Oxford Properties Group - Class AAA B B Building Size (sq. ft.) 905,720 263,650 66,880 Number of Floors 40 6 4 Typical Floor Plate (sq. ft.) 23,000 49,000 16,720 PATH Connected Yes No No Access to Public Transportation Very Good Good Good On-Site Parking Yes Yes 1:1,800 Total Available (sq. ft.) 47,118 87,955 66,880 Space Breakdown by Floor 26: 23,553 sq. ft. 27: 23,565 sq. ft. 1: 38,720 sq. ft. 2: 49,235 sq. ft. 1: 16720 sq. F 2: 16,720 sq. F Availability (Date) Immediate Immediate Immediate Vacancy Type Direct Direct Direct Condition of Premises Base-Building Landlord will return to Base-Building Full floor Asking Net Rent (sq. ft./yr.) $42.00 $20.00 $30.00 Additional Rent (sq. ft./yr.) $27.42 $21.06 $15.00 Gross Rent (sq. ft./yr.) $69.42 $41.06 $45.00 Vacating Tenant N/A (New development) RBC N/A 5
TORONTO DOWNTOWN Existing Office Availabilities Contiguous Blocks of Space > 40,000 sq. ft. DYNAMIC FUNDS TOWER ERNST & YOUNG TOWER 1 ADELAIDE ST EAST 100 UNIVERSITY AVENUE 222 BAY STREET 468 KING STREET WEST Building Owner/Manager Oxford Properties Group The Manufacturers Life Insurance Company Cadillac Fairview Allied Properties REIT Class A A AA RC Building Size (sq. ft.) 590,977 251,751 482,363 65,027 Number of Floors 30 12 31 7 Typical Floor Plate (sq. ft.) 21,500 23,000 19,200 9,300 PATH Connected Yes Yes Yes No Access to Public Transportation Very Good Very Good Very Good Good On-Site Parking Yes Yes Yes No Total Available (sq. ft.) 45,087 40,272 173,581 46,776 Space Breakdown by Floor 21: 22,500 sq. ft. 22: 22,587 sq. ft. 5: 24,536 sq. ft. 6: 15,736 sq. ft. Floors 18-26 Approximately 19,200 sq. ft. per floor Floors 2-6 Approximately 9,400 sq. ft. per floor Availability (Date) Immediate March 2018 Immediate (Floors 18-22) July 2018 (Floors 23-26) July 2019 Vacancy Type Sublet Direct Direct Direct Condition of Premises Built-Out Base-Building Built-Out Built-Out Asking Net Rent (sq. ft./yr.) $27.00 $29.00 $35.00 $35.00 Additional Rent (sq. ft./yr.) $27.75 $19.89 $31.90 $17.08 Gross Rent (sq. ft./yr.) $54.75 $48.89 $66.90 $52.08 Vacating Tenant Dundee & Eight Capital CIBC Ernst & Young Indigo Books 6
TORONTO DOWNTOWN Existing Office Availabilities Contiguous Blocks of Space > 40,000 sq. ft. EXCHANGE TOWER 130 KING STREET WEST ROYAL BANK PLAZA SOUTH TOWER 200 BAY STREET 85 RICHMOND ST WEST Building Owner/Manager Brookfield Office Properties Oxford Properties Group Inc. Oxford Properties Group Class A AA B Building Size (sq. ft.) 963,000 410,105 172,000 Number of Floors 36 26 11 Typical Floor Plate (sq. ft.) 26,000 17,500 16,507 PATH Connected Yes Yes Yes Access to Public Transportation Very Good Very Good Very Good On-Site Parking Yes Yes Yes (in complex) Total Available (sq. ft.) 50,900 75,709 52,666 121,448 105,330 172,237 Space Breakdown by Floor 15: 25,450 16: 25,450 3: 54,608 sq. ft. 4: 21,101 sq. ft. 33: 26,333 sq. ft. 34: 26,333 sq. ft. 34: 23,974 sq. ft. 35: 24,370 sq. ft. 36: 24,367 sq. ft. 37: 24,370 sq. ft. 38: 24,367 sq. ft. 5: 17,540 sq. ft. 6: 17,570 sq. ft. 7: 17,540 sq. ft. 8: 17,570 sq. ft. 9: 17,540 sq. ft. 10: 17,570 sq. ft. 1: 8,240 sq. ft. 2-10: 16,507 sq. ft. 11: 15,434 sq. ft. Availability (Date) October 2018 July 2018 October 2018 September 2019 February 2019 October 2019 Vacancy Type Direct Direct Direct Direct Direct Condition of Premises Base-Building Base-Building Base-Building Built-Out or Base-Building Base-Building Asking Net Rent (sq. ft./yr.) $29.50 $27.50 $29.50 $34.00 $33.00 Additional Rent (sq. ft./yr.) $29.96 $29.96 $29.96 $33.14 $23.13 Gross Rent (sq. ft./yr.) $59.46 $57.46 $59.46 $67.14 $56.13 Vacating Tenant AMIA TMX Group Department of Justice Norton Rose LLP N/A (new retrofit) 7
TORONTO DOWNTOWN Existing Office Availabilities Contiguous Blocks of Space > 40,000 sq. ft. CBC BUILDING TD WEST TOWER CADILLAC FAIRVIEW TOWER 250 FRONT STREET E 100 WELLINGTON 20 QUEEN STREET WEST Building Owner/Manager Class Canadian Broadcasting Corporation Cadillac Fairview Corporation Limited Ontario Pension Board Cadillac Fairview A A A Building Size (sq. ft.) 1,400,000 514,769 674,199 Number of Floors 10 32 36 Typical Floor Plate (sq. ft.) 100,000 17,500 18,500 PATH Connected Yes Yes Yes Access to Public Transportation Good Good Good On-Site Parking Yes Yes 1:3,500 Total Available (sq. ft.) 40,657 80,000 146,420 Space Breakdown by Floor 5: 40,657 sq. ft. (23,284 sq. ft. also available on the 2 nd floor) 26-30: 17,508 sq. ft. 4: 41,679 sq.ft. 23:12,131 sq. ft. 24:13,155 sq. ft. 25:17,957 sq. ft. 26:18,255 sq. ft. Availability (Date) Q2 2019 January 2019 January 2019 Vacancy Type Direct Direct Direct Condition of Premises Base-Building Built out Built out Asking Net Rent (sq. ft./yr.) $28.50 $34.00 $28.50 Additional Rent (sq. ft./yr.) $19.90 $32.00 $24.10 Gross Rent (sq. ft./yr.) $48.40 $66.00 $52.60 Vacating Tenant CBC - Scotiabank 8
Developments Under Construction 9
TORONTO DOWNTOWN Map Developments Under Construction LEGEND 10
TORONTO DOWNTOWN Developments Under Construction DANIELS WATERFRONT 59 HAYDEN STREET 130 QUEENS QUAY WEST 80 ATLANTIC AVENUE 410 BATHURST STREET Building Owner Cresford Daniels Corporation Hullmark Developments RioCan Office Size (sq. ft.) 90,380 280,000 80,000 70,000 Floors 8 11, 14 5 (4 Office) 4 Floor Plate (sq. ft.) 12,800 16,000 20,000 20,000 30,000 40,000 Net Rent (per sq. ft.) - $32.00 $35.00 - T & O (per sq. ft.) - $17.95 $20.00 (2018) $21.00 (2018) Gross Rent (per sq. ft.) - $39.25 $55.00 - Estimated Occupancy Q1 2018 Q3 2018 Q2 2018 Q3 2018 % Leased 0% 90% 75% 58% Tenants George Brown College (103,000 sq. ft.) *Purchase Daniels Corporation (21,000 sq. ft.) Artscape Launchpad (35,000 sq. ft.) OCAD (13,000 sq. ft.) CORE Architects (20,000 sq. ft.) House of Cool (6,000 sq. ft.) Other tenants include: Manifesto; RBC; The Daniels Corporation; The Remix Project Universal Musical Group (40,000 sq. ft.) Jackman Reinvention (20,000 sq. ft.) University Health Network (40,000 sq. ft.) Notes *Marketed for sale asking $800 psf *For sale or lease - $600 psf for sale 11
TORONTO DOWNTOWN Developments Under Construction ALLIED PROPERTIES & RIOCAN - KING-PORTLAND CENTRE 602-620 KING STREET WEST CHOICE PROPERTIES, WITTINGTON, LOBLAW, CONCORD ADEX THE WEST BLOCK, EST. 1928-500 LAKESHORE BLVD WEST CADILLAC FAIRVIEW & OPB 16 YORK STREET IVANHOE CAMBRIDGE & HINES - CIBC SQUARE, PHASE I SOUTH TOWER 81 BAY STREET Building Owner Cresford Daniels Corporation Hullmark Developments RioCan Office Size (sq. ft.) 254,000 245,000 879,000 1,500,000 Floors 13 (11 office) 7 32 49 Floor Plate (sq. ft.) 18,500-23,100 23,500 45,000 21,000 31,000 33,000 Net Rent (per sq. ft.) $35.00 - $34.00 (low-rise) $36.00 (mid-rise) $38.00 (high-rise) $43.00 T & O (per sq. ft.) $19.73 (2019) $24.39 (2019) $27.00 (2017) $29.50 (2019) Gross Rent (per sq. ft.) $54.73 - $61.00 - $65.00 (depending on rise) $72.50 Estimated Completion Q1 2019 Q2 2019 Q3 2020 Q2 2020 % Leased 93% 20% 37% 79% Tenants Shopify (158,000 sq. ft.) Indigo Books & Music Inc. (79,000 sq. ft.) Loblaw (50,000 sq.ft.) First National Bank (est. 108,000 sq. ft.) HSBC* (est. 220,000 sq. ft.) *Conditional CIBC (1.75 million sq. ft. split between both towers est. 1.1 million sq. ft. in South Tower) Boston Consulting Group (85,000 sq. ft.) 12
TORONTO DOWNTOWN Developments Under Construction RIOCAN, ALLIED & DIAMOND CORP. - THE WELL 410 FRONT STREET WEST HINES 1266 QUEEN STREET WEST QUEENS QUAY PLACE AT BAYSIDE Office Size (sq. ft.) 1,058,000 66,880 430,000 Floors 36 (35 office) 4 9, 9 Floor Plate (sq. ft.) 11,000 60,000 16,720 23,500 Net Rent (per sq. ft.) $34.00 (Years 1-5) $36.00 (Years 6-10) -- T & O (per sq. ft.) $25.50 -- TBD Gross Rent (per sq. ft.) $60.50 (average) $25.00 (semi-gross) TBD Estimated Completion Q4 2020 Immediate/Q2 2019 TBD % Leased - - Two office buildings, sharing a landscaped plaza Retail on ground floor Comments TI Allowance $25.00 per sq. ft. Retail on ground floor Taxes will be reduced by IMIT grant Part of a complex containing 7 mixed use towers Floor 1 and 2 available immediate (existing) Floor 3 and 4 under construction Full floor opportunities Creative office space 13
Proposed Office Developments 14
TORONTO DOWNTOWN Map Proposed Office Developments LEGEND 15
TORONTO DOWNTOWN Proposed Office Developments MENKES DEVELOPMENTS WATERFRONT INNOVATION CENTRE IVANHOE CAMBRIDGE & HINES CIBC SQUARE PHASE II (NORTH TOWER) H&R REIT - ATRIUM ON BAY EXPANSION 595 BAY STREET ALLIED PROPERTIES REIT QRC WEST, PHASE II MENKES, TRIOVEST & GREYSTONE - LCBO TOWER 100 QUEENS QUAY EAST Office Size (sq. ft.) 400,000 1,400,000 295,000 69,100 701,000 Floors 8, 9 54 2 tower additions: 5, 6 6 25 Floor Plate (sq. ft.) 13,500 37,000 32,000 33,000 22,000 33,500 12,500 27,000 Estimated Completion Net Rent (per sq. ft.) Q3 2019 2023 $31.00 (Years 1-5) $34.00 (Years 6-10) Construction to be completed 2 years from lease execution $46.00 $25.00 2022 T & O (per sq. ft.) $23.80 $29.68 $22.85 TBD TBD $56.30 Gross Rent (per sq. ft.) (average) Two buildings part of same complex: 125 and 155 Queens Quay East TI Allowance $30.00 /sq. ft. Comments Taxes will be further reduced by IMIT grant Also contains 29,000 sq. ft. of retail $75.68 $47.85 TBD TBD Taxes will be reduced by IMIT grant Podium floors 5-7 are 64,000 sq. ft. each 4th floor amenity floor 1 acre elevated park connecting both buildings 1.75 million sq. ft. will be taken by CIBC, divided between the two towers The Two towers are receiving expansions of 5 floors of office space each, on top of the existing mixed use building that is currently over 1 million sq. ft. TBD Not yet approved Waiting on anchor retail tenants Will include large ground floor retail Will connect to 134 Peter St via a 6th floor bridge TBD Pre-leased 33% to LCBO (200,000 sq. ft.) 16
TORONTO DOWNTOWN Proposed Office Developments PINNACLE INTERNATIONAL 1 YONGE ST, PHASE IV OXFORD PROPERTIES & CPPIB 30 BAY STREET BROOKFIELD PROPERTIES BAY ADELAIDE NORTH ALLIED PROPERTIES REIT - UNION CENTRE 20 YORK ST CADILLAC FAIRVIEW 160 FRONT STREET WEST CARTERRA PRIVATE EQUITIES 65 KING STREET EAST Office Size (sq. ft.) 1,600,000 944,000 970,600 1,042,000 1,280,000 300,295 Floors 22,35 45 32 47 (41 office) 46 19 Floor Plate (sq. ft.) 22,000 25,000 34,000 27,000 24,000 15,800 Estimated Completion 2022 2022 2022 2022 2022 Net Rent (per sq. ft.) TBD TBD TBD TBD TBD T & O (per sq. ft.) TBD TBD TBD TBD TBD Gross Rent (per sq. ft.) TBD TBD TBD TBD TBD Comments 2 office towers (22 & 35 storeys) totalling 1.6 million sq. ft. 3 residential towers (95, 80 and 65 storeys) are part of this complex and will be built first Phase IV (the office towers) not yet approved Pre-construction Waiting to secure anchor tenants Seeking an anchor tenant Office tower only Extra floors for: 2 floors of amenities and retail; 2 lobby floors; 1 mechanical floor; 1 office Skyroom floor Will feature a large public forecourt and direct PATH connection Seeking an anchor tenant Retention of the façade of the heritage building Preserves existing heritage buildings along King St (6 existing lowrise buildings) 17
TORONTO DOWNTOWN Proposed Office Developments FIRST GULF HULLMARK ALLIED PROPERTIES REIT AND WESTBANK KEVRIC CRESFORD DEVELOPMENTS - YSL RESIDENCES CASTLEPOINT, CONTINENTAL VENTURES AND CITYZEN 25 ONTARIO STREET 474 WELLINGTON ST WEST DUNCAN HOUSE 99 ATLANTIC AVENUE 383 YONGE STREET 3C WATERFRONT Office Size (sq. ft.) 450,000 122,000 105,000 110,048 120,000 250,000 Floors 24 15 58 (7 Office) 8, 2 98 (5 Office) - Floor Plate (sq. ft.) 22,500 8,000 15,000 20,000 24,000 55,000 - Estimated Completion Q2 2020 - Net Rent (per sq. ft.) - TBD $35.00 TBD TBD TBD T & O (per sq. ft.) - TBD - TBD TBD TBD Gross Rent (per sq. ft.) $50.00 TBD - TBD TBD TBD Comments Office tower with 4,500 ft² of retail at base Will contain a five-level underground parking garage Targeting LEED Platinum Marketed as proceeding on spec. Street-level retail (3,500 sq. ft.) Mixed use with 50 floors of condominiums plus retail and other commercial use on ground floor Office space fully leased by Thomson Reuters on 12 yr lease (105,000 sq. ft.) Floors: 8, 2 Approved, but waiting on an anchor tenant Renovation and reuse of an existing factory complex 8 storey office building with retail at grade and a 2 storey commercial building Mixed-use tower (primarily residential) Floors 4-8 will be primarily sold as office condo Mixed use complex on a 5.5 hectare site that will contain residential, retail, office, and public green space Buildings will total 2.4 million sq. ft. 18
TORONTO DOWNTOWN Proposed Office Developments DOWNING STREET CAPITAL ALLIED PROPERTIES REIT ALLIED PROPERTIES REIT LARCO INVESTMENTS THE PORTLAND PROPERTY GROUP THE FUELING STATION 191 PARLIAMENT STREET 388 KING STREET WEST 379 ADELAIDE STREET WEST 34 KING STREET EAST 49 SPADINA AVENUE 25 LIBERTY STREET Office Size (sq. ft.) 48,700 775,000 108,000 190,000 250,000 Floors 11 33 16 33 (10 office) 20 10 (8 office) Floor Plate (sq. ft.) - 23,500 8,500 20,000 10,000 25,000 Estimated Completion - 2022 Q4 2019 Net Rent (per sq. ft.) TBD TBD TBD TBD TBD $33.00 T & O (per sq. ft.) TBD TBD TBD TBD TBD $18.00 Gross Rent (per sq. ft.) TBD TBD TBD TBD TBD $51.00 Comments Mixed-use building comprised of 30 live/work units and retail at base Office tower with 15,000 sq. ft. of retail at base Waiting on an anchor tenant New office space spanning incorporating 2 existing buildings and replacing a third building Mixed-use building totalling 275,000 sq. ft. Majority residential with retail at streetlevel Historic building to be retained and used as office space Connects to and preserves the existing 5 storey heritage building Pursuing LEED Platinum certification 1 floor of retail and 1 floor of showroom/office 3 outdoor terraces 19
TORONTO DOWNTOWN Proposed Office Developments STATE BUILDING GROUP & STANFORD HOMES LIFETIME DEVELOPMENTS 400 FRONT ST WEST 504 WELLINGTON ST WEST 488 WELLINGTON ST WEST 7-15 FRASER AVENUE LIBERTY MARKET TOWER Office Size (sq. ft.) - 81,000 200,000 175,000 277,000 Floors 24, 25 15 16 7 28 (6 office) Floor Plate (sq. ft.) - - - - - Estimated Completion - - - - - Net Rent (per sq. ft.) TBD TBD TBD TBD TBD T & O (per sq. ft.) TBD TBD TBD TBD TBD Gross Rent (per sq. ft.) TBD TBD TBD TBD TBD Comments Two office towers with retail at grade The complex is set to contain 3 other buildings: two 60 storey residential towers with retail at grade, and a 2 storey pavilion The mixed-use complex will total 1.5 million sq. ft. 3,300 sq. ft. of retail at street-level Heritage buildings will be retained Retail space on half of the main floor in it s existing location Incorporating existing 2 storey warehouse building Pre-construction Mixed-use tower that would replace the east end of the Liberty Market Building Retail on the ground floor with office space on floors 2-7, followed by residential on top 20
TORONTO DOWNTOWN Proposed Office Developments LANTERRA DEVELOPMENTS QuadReal 100 SIMCOE AVENUE ARTISTS ALLEY COMMERCE COURT 3 Office Size (sq. ft.) 184,827 50,000 - Floors 59 (9 Office) 36 (3 office) 64 Floor Plate (sq. ft.) 24,000 (office floors) 16,500 - Estimated Completion - - - Net Rent (per sq. ft.) TBD TBD TBD T & O (per sq. ft.) TBD TBD TBD Gross Rent (per sq. ft.) TBD TBD TBD Comments Residential tower with office space in the podium and retail at street-level 4-storey underground parking garage Mixed-use three tower development, primarily residential Tower 2 will contain 3 storeys of office space 64-storey office tower Share title of Toronto s tallest office building. 21
THANK YOU James Butchard Vice President Advisory & Transaction Services 416 815-2378 James.butchard@cbre.com March 2, 2018 * Sales Representative