Q2 2023 Toronto Office Market Report

The second quarter of 2023 saw a steady increase in vacancy rates across the Greater Toronto Area, driven largely by the Midtown market, a large sublet space coming on to the market on Bloor Street West.

Year over year, the net rents remain the same, with Landlords opting to provide incentives rather than decreasing their face rates.

The sublease market continues to climb with nearly 6 million square feet of space available on the market. It should be noted however, that subleases that continue to remain on the market are lacking updates or amenities that tenants find attractive.

The increase in interest rates from the Bank of Canada will have an adverse effect on build-out costs, making upgrades less financially feasible for both Landlords and tenants.

What does all this really mean for Tenants? Download the full report to learn how the current market conditions may affect Tenants.