Max Shapinko

Return to office momentum continued to be slow throughout the final quarter of 2022, with many companies implementing full-time hybrid work models. The federal government—one of the last remaining large occupiers working fully remote—announced a return-to-the-workplace model of at least three days per week on site starting in 2023.

Office vacancy decreased in half of Colliers' tracked markets. This suggests optimism in the office sector, as summer can sometimes see subdued activity. While suburban office was once considered a secondary option, suburban vacancy rates are almost universally lower than downtown. Lower asking rents, free parking, and shorter commutes all contribute to the appeal of the suburbs.

Return to office reached its highest levels of the past two years, but office attendance is still below pre-COVID norms, especially in central business districts. The job market remained hot, with rising job vacancies, low unemployment and increasing wages.