Q4 2022 Toronto Office Market Report
As 2022 drew to a close, the Toronto and Greater Toronto Area (GTA) office struggled to find a “new normal” as the pandemic fallout, workplace evolution, rising interest rates, and geopolitical events weighed heavily on occupier decisions. While businesses are adapting to the new norms of hybrid work models, economic headwinds have hampered occupiers’ and investors’ confidence in maintaining and managing their commercial real estate footprints.
As more tenants rightsize their existing space to accommodate lower utilization rates, landlords have devised new ways to enhance tenant inducements and the flexibility of early termination to stabilize occupancy levels. Faced with tenant relocations into new builds, long known future vacancies have finally come to market and had an outsized impact on Downtown Toronto. This impact was also amplified by the curbing of growth plans by several major tech companies. 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.
As more tenants rightsize their existing space to accommodate lower utilization rates, landlords have devised new ways to enhance tenant inducements and the flexibility of early termination to stabilize occupancy levels. Faced with tenant relocations into new builds, long known future vacancies have finally come to market and had an outsized impact on Downtown Toronto. This impact was also amplified by the curbing of growth plans by several major tech companies. 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.