TORONTO — A new fourth-quarter 2022 Office Insight report for Toronto from JLL found the total vacancy rate in downtown Toronto rose 100 basis points quarter-over-quarter, reaching 12.6 per cent in Q4.
The negative results were largely due to anchor tenants vacating some of their offices, such as CIBC at 22 Front St. and IA Financial Group at 522 University Ave., stated a release. As a result of the recent vacancies and limited supply being added to the market, net negative absorption of minus 706,244 square feet was recorded in downtown Toronto in Q4.
JLL reported office sublease availability reached an all-time high as users continue to adjust to economic uncertainty. The downtown Toronto office market experienced another notable uptick in sublease availability in Q4, increasing by 20.8 per cent quarter-over-quarter, setting a new all-time high for the second consecutive quarter.
The results were notably better in JLL’s Industrial Insights Q4 report for Toronto.
The fourth quarter saw meaningful recuperation after the transactional and construction pauses experienced in Q3, JLL reported.
Over 3.4 million square feet of long-pending deals managed to close by the Christmas season. Such deals included Home Depot leasing 605,000 square feet from Crestpoint at 3150 Derry Rd. and Chrysler signing a deal with Orlando for their 513,507-square-foot site at 100 Edgeware Rd.
The largest deal of the quarter involved Lululemon signing a deal with Prologis for their upcoming 975,000-square-foot site at Highway 50 and Countryside Drive, a project designed for LEED certification.
Over 4.6 million square feet of new big-box industrial product managed to deliver during the quarter, an increase of 144.3 per cent over the 1.9 million seen in Q3.
Completions included Broccolini’s 750,055-square-foot site at 7095 Fifth Line and Crestpoint’s 605,299-square-foot site at 3150 Derry Rd.