While Toronto is slowly coming back to life as vaccination rates across the province increase, many companies continue to allow their employees to work remotely or adopt hybrid models.
According to a new report from the CBRE, the demand for office space across the country continues to decrease.
Towards the end of the year’s third quarter, 15.7 percent of Canada’s office space remained vacant — the highest rate since 1994 amid the dot-com bubble.
In Toronto, however, things are even worse. The city’s office vacancy rate currently sits at 13.7 percent, a massive jump over the two percent rate of empty offices before the COVID-19 pandemic.
That said, the CBRE says that it believes Toronto’s office vacancy rate will slowly return to normal, particularly in the downtown core. In downtown Toronto specifically, office vacancy rates sit at 9.9 percent. This is significantly above the 1.1 percent vacancy rate during the same quarter in 2019.
Given the pandemic is showing no signs of slowing down, it will likely be some time before we see Toronto’s office vacancy rates fall to pre-lockdown levels.