Office vacancy rate in Canada rose in second quarter to highest level since 1994, report says

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Office vacancy rate in Canada rose in second quarter to highest level since 1994, report says
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Commercial real estate firm CBRE says the national office vacancy rate rose to 18.1% in the second quarter, up from 17.7% in the first quarter

A report by commercial real estate firm CBRE says the national office vacancy rate in Canada climbed in the second quarter to its highest level since 1994.

The firm says the national office vacancy rate rose to 18.1 per cent in the second quarter, up from 17.7 per cent in the first quarter.The increase came as the downtown office vacancy rate in the second quarter rose to 18.9 per cent compared with 18.4 per cent in the first quarter. The suburban office vacancy rate was 17.1 per cent, up from 16.8 per cent.

The firm says downtown vacancies in the second quarter inched higher in all major centres except for Calgary and the Waterloo region. CBRE says Canadian office markets are grappling with the threat of a recession, interest rate hikes, tech sector weakness, tenants reducing the size of their spaces and new supply of office space.

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