Here at 88West, we keep an eye on the market trends so that we can keep you informed about real estate trends & opportunities.
On Sep 30th, Bloomberg reported that office vacancies are rising in Canada.
– Toronto – office vacancies rose to 4.7% from 2.7% reported in the second quarter,
– Vancouver – office vacancies increased to a 4.6% vacancy rate, up from 3.3%. Of these vacant office buildings,
– 40% of the space is being listed for subleasing.
– As vacancy rates rise, lease rates will go down. However, according to report so far, The going rate for Class A office space, typically the most expensive, has remained stable.
What does this mean for the upcoming years?
Chuck Scott, the chief executive officer for the Canadian operations of Cushman & Wakefield says it’s a “bumpy road” coming in the short term, and predicts that we will continue to see vacancies rise with an increased focus on subleasing. Scott forecasts a full recovery by 2024.
We hope that a post-pandemic economic recovery should recreate demand for office spaces.
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