For the fifth consecutive year, Toronto’s Bay Street has topped the list of most expensive streets for office space in Canada, according to the annual study released by Jones Lang Lasalle (JLL).
Rents on Bay Street are reaching $68.19 per square foot (p.s.f.), followed close behind by Vancouver’s Burrard Street, which ranked second at $57.72 p.s.f.
Queen Street in Ottawa was third at $49.34 p.s.f. and Montreal’s Rene-Levesque West was fourth at $48.28 p.s.f., with average rents for office space on this street reaching 68 per cent greater than the location average.
“Location is everything,” said Brett Miller, president of JLL Canada. “Average rents for office space on Bay Street were more than 100 percent higher than the average rents for Toronto. However, tenants are willing to pay a premium for addresses close to attractive amenities such as restaurants, retail and residential, which allows them to capitalize on the live, work and play mentality that is a growing demand.”
On the list as the biggest mover was Calgary’s most expensive street 8th Avenue Southwest, dropping from second last year with rents at $60.38 to Canada’s fifth most expensive street with rents decreasing to $45.60 p.s.f.
Damien Mills, executive vice-president and managing director of Western Canada, said the sentiment in Calgary is “one of renewal” amidst the correction it went through this year.
“Though it’s been tough on landlords, it will provide a needed expense break for tenants to fuel future development,” added Mills. “We’re already starting to see improved financial reporting in the oil and gas sector, showing that the correction has forced a refocus and has shaped a platform for growth and sustainability.”