Q3 2022 Toronto Office Market Report

The Toronto and Greater Toronto Area (GTA) office market saw a few positive indicators in Q3 2022, such as flattening vacancy and improved downtown office occupancy.

As downtown tenants prioritize quality over cost, the vacancy rate of Downtown Class B office towers is nearly 50% higher than that of their Downtown Class A peers. Overall demand for new or existing space remains clouded by broader economic uncertainty and the potential threat of a recession early next year. In response to the Bank of Canada rate hikes, many industry professionals and decision-makers have taken a step back as they prepare to wait out a potential economic downturn. However, confidence in the office as a long-term tool for employee and organizational success endures.

In Q3, office occupancy in the Downtown core climbed to over 30%, a positive trend that is anticipated to further improve and is likely to be accompanied by increased office leasing activity. Both tenants and landlords across the market continue assessing their position and goals in the post-pandemic environment amid increasing economic uncertainty.

Read our Market Report for more details.