Q4 2021 Toronto Office Market Report

The Toronto and Greater Toronto Area (GTA) office markets continued to experience increasing vacancy rates as the market now sits at 9.3%, up from 8.7% in Q3 2021. The downtown core saw an increase in vacancy from 7.0% in Q3 to 7.3% in Q4 2021. Over Q2 and Q3 of 2021 there were positive signs pointing towards an office recovery with two straight quarters of positive absorption in the downtown core, however, Q4 2021 saw negative absorption of 344,000 square feet, and negative 1.5 million square feet in the overall market. Suburban markets in Toronto North and Durham were the only submarkets to experience positive absorption of approximately 130,000 square feet, total, and a decrease in vacancy by 0.4%, each. The progress made by vaccine roll outs and return to office strategies has been put on pause due to the spreading Omicron variant and the remaining uncertainties around the Covid 19 pandemic.

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