A report from commercial real estate firm CBRE states that the national office vacancy rate in Canada rose in the second quarter to its highest level since 1994. The firm indicates that the national office vacancy rate increased to 18.1% in the second quarter, up from 17.7% in the first quarter.
It was the highest level since the first quarter of 1994 when it reached 18.6%.
The increase occurred as the downtown office vacancy rate in the second quarter rose to 18.9% compared to 18.4% in the first quarter. The suburban office vacancy rate was 17.1%, up from 16.8%.
The firm states that downtown vacancies in the second quarter increased in all major centers except for Calgary and the Waterloo region.
CBRE notes that Canadian office markets are grappling with the threat of a recession, interest rate hikes, weakness in the technology sector, tenants downsizing their spaces, and new office space supply.
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