TORONTO — Avison Young has reported that office absorption was negative across the GTA in Q3, with the Toronto north region deviating from the trend with positive absorption and declining vacancy.
Meanwhile, one new building was completed during the quarter: Portland Commons, at 563,700 square feet, fully available at the time of completion. As the supply pipeline continues to taper off, just four projects totalling two million square feet remain under construction.
The information is contained in Avison Young’s Q3 office report for the Greater Toronto Area.
Absorption is determined by measuring how much space was occupied versus vacated.
The GTA’s overall availability rate rose 60 basis points to 20.2 per cent during the third quarter, up 110 basis points year-over-year. Overall vacancy also continued to rise, up 40 basis points quarter-over-quarter and 160 basis points year-over-year to 14.4 per cent.
Net absorption turned negative in Q3 as occupied area declined by 686,000 square feet, reversing the gains made in the first half of the year.
Avison Young also reported that availability in downtown Toronto continued to rise, jumping 100 basis points quarter-over-quarter to 21 per cent, an increase of 230 basis points year-over-year. Vacancy, meanwhile, was up 80 basis points during the quarter (and 350 basis points year-over-year) to 15.8 per cent.
In September, dairy and food products co-operative Gay Lea Foods announced plans to relocate its headquarters from Mississauga’s Airport Corporate Centre node to 10 Carlson Ct. in Etobicoke in Toronto in the summer of 2025. At 20,000 square feet, the new space will be smaller than the current location, but the firm said it will feature technologies and an open-concept design to promote connection among the 200 employees working there.
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