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.
- Close to 70% of all new office construction is still downtown, even with slow return to office (RTO) in central business districts. Considerable variation exists, where Toronto has 94% of construction downtown, Vancouver has a more even split, and Calgary and smaller markets have suburban development dominating.
- The industrial boom continues, with every market recording lower availability than Q3 of last year. Several markets have availability levels less than half of last year, and smaller markets such as Waterloo and Victoria are approaching zero. Vancouver became the first market in the history of our tracking to exceed $20 per square foot average asking net rents for industrial.
- RTO momentum slowed with the end of school, summer vacation and a vigorous return to travel. Retirements and staffing shortages have given employees increased leverage, causing employers to scale back RTO plans.
