In Q4 2023, the market experienced a decline in transactions and leasing volume, but this was offset by occupiers signing significant deals in central downtown nodes. Most deals over 20,000 SF were A or AAA-Class assets in the Central Business District.
Landlords continued offering turnkey solutions, such as model suites and enhanced amenities in communal spaces. Despite caution regarding shorter-term leases, there is a growing demand for flexible lease solutions.
Business sector employment has seen an upward trend since the pandemic, but projections suggest a potential decline in 2024. Office occupancy data in the Greater Toronto Area shows a deceleration in momentum, with peak office days nearing 70% occupancy and slow days at around 30%.
Source: Colliers
