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.
- Suburban office vacancy rates are considerably lower than Downtown office vacancy rates in many of Colliers’ tracked markets across Canada, including major markets such as Calgary and Vancouver. In general, office markets less dependent on large occupiers and with smaller cores have usually performed better in 2022 than markets with larger population centres and more public transit-dependent areas.
- Industrial leasing remains strong across the country, with robust tenant demand, land constraints in most markets, and ever-increasing asking net rents; every single Colliers tracked industrial market has an asking net rent above $10 per square foot at year-end.
- Recent data suggests e-commerce growth has levelled off, but fulfillment centres continue to drive leasing demand. Under construction inventory remain at incredibly high levels, but still represents a small segment of overall inventory.