Q4 2023 Toronto Office Market Report
For the fourth quarter of 2023, there has been a minor increase in office vacancy rates, in the sub-one percent levels. Net rents in the GTA increased marginally.
Many of the developments coming on to the market in 2024 and beyond have not been pre-leased. This will have a major impact on vacancy rates increasing. The increase is partly due to new buildings staying empty, though it is important to note that in Class A buildings, the vacancy rate is lower, as many companies have made the flight to quality. With a shift in the economy and a recession looming, we are expecting more companies to enforce mandates asking employees to come into the office more often.
Looking ahead, we anticipate people will be looking for built out spaces to avoid high construction costs. They would rather sign with a space that is ready for them to move into, rather than face the challenges of rising costs and delays. We expect that vacancy rates will continue increasing, as they have since the onslaught of the pandemic, and are anticipating that costs will remain the same, though landlords are feeling the pressure to be creative to get deals done, and potentially offering a greater number of inducements.
Download the report to learn more.
Many of the developments coming on to the market in 2024 and beyond have not been pre-leased. This will have a major impact on vacancy rates increasing. The increase is partly due to new buildings staying empty, though it is important to note that in Class A buildings, the vacancy rate is lower, as many companies have made the flight to quality. With a shift in the economy and a recession looming, we are expecting more companies to enforce mandates asking employees to come into the office more often.
Looking ahead, we anticipate people will be looking for built out spaces to avoid high construction costs. They would rather sign with a space that is ready for them to move into, rather than face the challenges of rising costs and delays. We expect that vacancy rates will continue increasing, as they have since the onslaught of the pandemic, and are anticipating that costs will remain the same, though landlords are feeling the pressure to be creative to get deals done, and potentially offering a greater number of inducements.
Download the report to learn more.