The vacancy rate for offices in Downtown Toronto has slipped below 4 per cent for the first time.
CBRE Canada says that the rate was 3.8 per cent in the second quarter as 1.53 million square feet of office space was absorbed. There was also a shift towards the city suburbs with the vacancy rate falling to 12.9 per cent from 14.1 per cent in the first quarter.
There is relief on the way for the tight market, which is a popular choice for the tech sector. But that relief won’t be in the short term.
“Toronto’s next construction cycle is underway, which will provide relief for tenants, and there is currently 3.2 million square feet of downtown projects under construction. However, most these new projects are still a few years out from delivery, so, in the short-term, conditions will remain tight for tenants,” commented Paul Morassutti, Executive Managing Director of CBRE Canada.
More market update: