Downtown Toronto office vacancies exceed suburban areas for the first time

The office vacancy rate in downtown Toronto is rising, surpassing suburban areas for the first time, according to JLL Canada. The second quarter saw negative absorption rates, largely due to banking sector consolidations, with the financial core and downtown north particularly affected. High vacancy rates have led to reduced net rents and increased tenant advantages. While interest rate cuts may boost future leasing activity, current trends show a shift towards housing construction. Suburban areas exhibit varying vacancy trends, with a notable demand for educational and student housing.