Absorption in Q3 2020 softened to -792K SF, up from -1.4M SF the previous quarter.
- There was 1.3M SF of new supply introduced, which eased the impact of increased sublet space on the market by adding some positive absorption.
- The GTA vacancy rate increased 80 bps from the previous quarter to 5.2%.
- Downward pressure on rental rates has yet to surface despite the jump in vacancy and increase in availability, climbing 5% since Q2 to $21.54 psf.
- Sustained asking rates are masking other financial incentives being offered to tenants, such as increased tenant inducements and shorter lease terms.