Downtown Toronto experiencing spike in office vacancies
Toronto’s commercial segment continues to labour under adverse conditions, with the downtown market recently seeing a spike in office vacancies.
In a new report, Jones Lang LaSalle said that the area saw 169 newly empty office spaces during Q2 2020. This accompanied an increase of more than 7% in the market’s rents.
The report also said that downtown Toronto saw only one new large lease signed during this period.
A significant proportion of market players are “still waiting for stability to return in the office market and in everyday life,” JLL said. “Downtown Toronto remains a landlord’s market.”
The COVID-19 pandemic’s impact has reverberated across every asset class, with the commercial market enduring the brunt of the hammer blows on business liquidity.
According to a recent Statistics Canada survey, around 20% of Canadian business tenants are considering shutting down within the next half-year due to declining sustainability. This came after roughly 33% of businesses saw their April revenues drop by more than 50% annually.
In the last few months, nearly 40% of Canadian businesses were forced to cut down their working hours, and around 28% had to trim their workforces.
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