Q3 2024 TORONTO OFFICE MARKET REPORT

WORKPLACE

In the third quarter of 2024, the Greater Toronto Area (GTA) office vacancy rate increased to 14.3%, up from 13.2% in Q2. This trend is expected to continue, with projections suggesting a rise to 14.8% by Q4.

The availability rate also saw a significant jump from 16.1% to 17.5%, further highlighting the expanding inventory, with over 680,000 square feet delivered to the GTA office market in Q3.

The average net rent showed a slight decrease, moving from $23.28 per square foot in Q2 to $23.11 per square foot in Q3. While base rental rates remain relatively stable, landlords are offering more incentives than ever and being upfront about it. This is firmly a tenant’s market, and tenants should not hesitate to request or negotiate incentives from landlords, including but not limited to improvement packages and rent-free periods, as they hold the upper hand in negotiations.

What does all this mean for tenants? Download the full Market Report to find out.

October 31, 2024

TRANSACTION MANAGEMENT