In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in X have risen/fallen by 6.8% over the last year. The prime yield is 4.9%, or a 3.22% premium to the yield on 10-year government bonds. Over the last year, rents have risen by 2.7% and net absorption (on a rolling one year basis) has been 1.0%. The vacancy rate is currently 9.9%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 2.2% of current stock. JLL considers that conditions will likely favour neither landlords nor tenants in 2016.

Source : November 2015/JLL/Toronto/OFF