In Q2 2022, the uncertainty of both the economic climate and the future of the office in corporate strategies continued in a way that may feel familiar for landlords, tenants and industry professionals who have been enduring these conditions for the past two years.
- Across the Greater Toronto Area, 1.1 million square feet of negative absorption were recorded, and while vacancy grew to 9.6% this quarter, it should be noted that the curve of post-COVID vacancy growth is flattening.
- Downtown sublet availability as a proportion of total availability peaked at 41.7% in Q1 2021, and has now returned to pre-COVID levels at 22.6% in Q2 2022.
- Downtown office occupancy increased to 27% of the pre-COVID normal, but employers who are intent on mandating a return to office have faced challenges with the enforcement of these policies.
