Green shoots sprout after crippling pandemic winter in downtown Toronto – .

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Green shoots sprout after crippling pandemic winter in downtown Toronto – .


Some notable tenants have signed deals as well, as interest from tech companies continues to grow, JLL said. Pinterest has signed a 50,000 square foot sublet in the heart of the city, which already includes tenants such as Skip the Dishes, Ryerson University and Aurora Cannabis.

Interestingly, this is the top end of office buildings in greatest demand, as “tenants are reassessing the importance of better equipment such as advanced HVAC systems in a post-COVID world,” the report said. .

Another green push is an increase in the demand for sublets, which has flooded the market over the past year and a half.

Commercial real estate company CBRE said in a report last month that the sublet market is tightening as some companies pull their spaces off the market to reopen their offices.

Nearly one million square feet of office space previously leased to sublet was canceled or leased in downtown areas in the second quarter, half of which was in Toronto, CBRE said.

“Sublease announcements can be knee-jerk reactions to a sudden market correction. The fact that subleases are canceled or rented by new companies is a very good sign and this is only the beginning of the trend, ”CBRE Canada Vice President Paul Morassutti told The Canadian Press. .

Despite the pandemic, Canada still has the four tightest downtown office markets in North America with a vacancy rate of Vancouver at 6.6%, Toronto at 10%, Ottawa at 10.6% and Montreal at 11.1%, CBRE said.

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