Transactional activity during the second quarter persisted at a slower pace due to fluctuating demand and lingering uncertainty surrounding the future of work.
- Despite ongoing economic headwinds, Greater Toronto’s CBD saw quarter-over-quarter vacancy remain stable at 11.7% as a result of growing interest in AAA properties among more traditional occupiers active in legal and finance-related services.
- The GTA's market share of sublet space accounted for 24% of total availability this past quarter following the emergence of some notable spaces. Midtown more than doubled their stock following the emergence of two key sublet spaces.
- Pockets of the Suburban East contributed to declining suburban vacancies, primarily among Class A facilities. However, the wider market experienced an underwhelming quarter, marked by more than 320,000-square-feet of negative absorption and a 30-basis point increase in market availability.
- Business and support services showed a decline of approximately 4.4% in employment activity, demonstrating early signs of a weakening economy. Despite the labour market’s slightly regressive nature, the Bank of Canada, again, tightened monetary policy by raising interest rates to a record-breaking 5%.