The share of offices available for lease in Canada, also known as the vacancy rate, hit 18.5 per cent in the second quarter of 2024, the highest level in at least three decades, according to a new report by commercial real estate firm CBRE.
Nationwide, the downtown vacancy rate has been rising sharply since 2020 after remote work effectively became the norm.
Although only a tick higher than the 18.4 per cent recorded in the first quarter, CBRE expects the number to continue to grow in the second half of the year as new office space comes to the market — particularly in Toronto — with only about 40 per cent of it currently pre-leased.
That means that landlords, especially those who own older buildings (referred to as class B and C), will have to continue to scramble to make capital investments and retrofits to attract tenants increasingly preferring “trophy” (triple A) office towers, which are more modern and have more amenities.
This story is from the July 03, 2024 edition of Toronto Star.
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This story is from the July 03, 2024 edition of Toronto Star.
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