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Toronto Office Market Report Q3 2023

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research article

The Greater Toronto Area (GTA) reached a brief period of stabilization during the third quarter, specifically in the Downtown and Midtown markets where vacancy declined from a record high in the last quarter to 10.9%, a 20-basis point (bps) decline quarter-over-quarter (QoQ).

  • While it’s unclear if the GTA’s office market will eventually find its footing amid rising availabilities, transactional activity in the third quarter had an unexpected impact on Downtown occupancy levels. This was attributed to a surge in leasing activity, primarily in grade A properties. Consequently, vacancy rates in Class A Financial Core assets declined to 11.1%, driven by over 200,000 square feet of positive net absorption.
  • Suburban office spaces experienced a contrasting trend, with a noticeable increase in unoccupied space, particularly pronounced in the GTA West region. Suburban vacancy rates decreased for a second consecutive quarter, dropping by as much as 30 basis points (bps) on a QoQ basis, settling at 11.0%.
  • Recent analysis revealed a consistent downward trend in the average days on market for sublease listings, spanning four consecutive quarters and averaging a 24% decrease. Prospective tenants have increasingly shown interest in turnkey solutions, further contributing to this shift.
  • Although project completions were initially sluggish, the year is expected to conclude with the delivery of over 1.5 million square feet office space, including 160 Front Street and Hines’ mass timber project, T3 Sterling.

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Toronto Office Market Report Q3 2023

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Pour plus d’informations, veuillez contacter:

John Arnoldi

Executive Managing Director, Eastern Canada

Toronto Downtown

John began his career in commercial real estate in 1986 as a commercial office leasing agent when he joined The Arnoldi Group. He continually produced results for his team and began leading the department early on. He joined Colliers in 1992 as a Downtown office leasing sales representative and was a consistent top producer for the firm.

Since 1999 John has been part of the Senior Leadership team at Colliers International, previously serving as Executive Managing Director for the Greater Toronto Area and prior to that as Managing Director of the South-Western Ontario branch in Kitchener

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Adam Jacobs

Head of Research | Canada

Toronto Downtown

Colliers Canada's head of research, leading a cross-country team of 20 mapping, analytics and research professionals. Formerly head of Canada research at Cushman Wakefield and Director of Analytics at Oxford Properties. Featured in mainstream publications such as the Toronto Star, industry publications and podcasts. Specializing in the big picture and the fundamentals driving real estate - demographics, the macro environment and the global economy. 

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