Downtown Toronto office availability dips for first time in 5 years

The downtown Toronto office market has seen its first decline in office availability in five years, with a current availability rate of 20%. This reduction is attributed to strong leasing activity and aggressive landlord concessions. The trophy and class-A segments recorded positive net absorption, while class-B and -C offices faced negative absorption. Significant leases include a 250,000-square-foot deal at CIBC Square II. Meanwhile, Southwestern Ontario's market experienced negative net absorption, increasing vacancy rates. Overall, conditions may favor a stronger office market in 2025.