Toronto Office Space Vacancy Hits A New Record High

Toronto's office space available for lease surged in Q2 2024, with a fifth of the market now up for lease. Vacant space increased to 14%, while sublet space accounts for 4.2%. Despite high vacancies, prices hit record highs. Demand is stronger in the north and west of the city. Average net asking prices per sqft for different classes also reached new highs. Landlords are offering incentives like free months instead of lowering prices. The city is considering converting vacant office spaces into housing. The shift to remote work may lead to a permanent transformation in Toronto's office market.