TORONTO, May 8, 2008 - In its new Real Estate Market Study published today, GVA Devencore announced that increasing rents for Class “A “office spaces and steadily declining vacancy rates characterized the corporate real estate market throughout most of the Greater Toronto Area (GTA) in 2007. Indeed, the combined vacancy rates for Class “A” and Class “B” buildings in the city’s Downtown District and Financial Core have reached new lows.

“A landlord’s market clearly prevails and tenants are finding it a decided challenge to find the right space at the right price. However, opportunities can be found and some landlords are more aggressive than others in pursuing long-term deals” said Allan Schaffer, President / Broker of Record of Devencore Realties Corporation Canada Limited, Brokerage.

Schaffer also noted that the sub-prime crisis afflicting the U.S. economy has not yet had a significant effect in Toronto. “However, lending markets are tightening up and it is becoming more difficult for investors to finance projects. As a result building prices are levelling off, or even falling in some cases, in order to attract buyers,” Schaffer said.

Three major office projects scheduled to come online in 2009-2010 should provide tenants with a few more options. The Bay Adelaide Centre, a 1.5 million square foot development between Adelaide and Temperance Streets, is now 65% pre-leased. And both the 750,000-square-foot Telus Building on York St. and the 1.2 million square foot RBC Centre at 155 Wellington Street West are over 50% pre-leased.

Nationally, office vacancy rates also continued to drop and are now as low as they have been since GVA Devencore began tracking the statistics. In the downtown districts of Canada’s major cities, there is a total inventory of approximately 194.8 million square feet of Class “A” and Class “B” office space. At the end of 2007, only 3.8% remained available for lease or sublet. By way of comparison, at the end of 2004 the Canada-wide vacancy rate stood at 9.1%. Over the past three years, nearly 17.2 million square feet have been absorbed.

“Market conditions in 2008 will challenge tenants seeking space throughout most of the GTA,” Schaffer said. “Nevertheless, quality lease and sublease space can be found. To capitalize on these opportunities the market must be closely monitored on a daily basis, as quality office spaces will be snapped up very quickly.

About GVA Devencore

Founded in 1972, GVA Devencore is the largest real estate brokerage and advisor in Canada offering services exclusively to corporate and public space users. It distinguishes itself by its full range of professional services and management tools designed to assist executives in evaluating and resolving their real estate portfolio issues. GVA Devencore is a privately-owned company covering the Canadian market from its offices in Montreal, Toronto, Ottawa and Vancouver. It is a founding partner and the Canadian representative of GVA Worldwide Ltd.