(Toronto) Canada’s office vacancy rate soared in the second quarter to its highest level since 1994, said a report released Tuesday by commercial real estate services firm CBRE.
According to the company, the national office vacancy rate rose to 18.1% in the second quarter from 17.8% in the first quarter.
This is the highest level since the first quarter of 1994, when it was 18.6%.
The increase came as the downtown office vacancy rate in the second quarter rose to 18.9% from 18.5% in the first quarter. The suburban office vacancy rate was 17.1%, up from 16.9%.
The company said downtown vacancy rates in the second quarter rose slightly in all major centers except Calgary and the Waterloo region.
CBRE noted that Canadian office markets were grappling with the threat of a recession, rising interest rates, a weak tech sector, tenants downsizing their space and new supply of office space. offices.
Note to readers: A previous version did not give the correct figures for the first quarter data for the overall vacancy rate, as well as for those for downtown and suburban offices.