The impact of the pandemic has resulted in a higher vacancy rate of the office space that climbed to over 6% in Q4 2020. Right now, everyone is watching the sublease market as we are going to see more space being put up for sublease. The suburban office vacancy rose to 15.3%, a 17-year high with over 50% located in the financial core.
The question remains whether how much office space the companies will need in the future. Factors like the attitude towards work change and companies experiencing financial hardship are going to evaluate companies’ needs and put some of their excess space on the market. Still, for many businesses, the office is fundamentally important, and with new vaccines in circulation, the path for a safe return is becoming clearer.
Despite the current dynamics, the Canadian office market exhibited some of the better performances this year and has the lowest availability rate among all comparable markets in North America.
The Bank of Nova Scotia takes away the trophy for this year’s largest office leasing deal so far. It agreed to renew 560,000 square feet of office space in Toronto. But the deal will see 310,000 fewer square feet from owners KingSett Capital and Alberta Investment Management, leaving the top seven floors of a 68-storey tower to rent.
Regardless of the major work-from-home trends in 2020 and 2021, Jon Love, the founder and CEO of KingSett Capital said that the deal had been in the works for over a year and had nothing to do with COVID.
Other Top Office Leases Recognized for Greater Toronto… Read More