(Toronto) A new report from Colliers Canada projects that the national office vacancy rate could peak at around 15% by the end of 2024, as the rise of hybrid work models prompts companies to reduce their space Office.
The document indicates that the office vacancy rate in Canada has increased from around 8% to 14% since 2020, but this figure is expected to decline in early 2025, barring a major economic downturn in the next 18 months.
Economic growth is tempering the growth of vacant spaces, although hybrid work is becoming more popular, thanks to business expansion and new companies entering the market.
Some 55% of companies say they have finalized their approach to balancing in-office and remote work, up from 49% in Q4. 86% of tenants said they were satisfied with their current hybrid arrangements.
The report shows that the average number of days that companies require their employees to work in the office fell from 2.5 at the end of 2022 to 3 in the last quarter.
Colliers says commercial tenants are 10% more likely to renew a lease for each additional day their employees work in the office, with businesses more likely to maintain their current square footage if staff work in the office at least four days a week. week.
