Greater Toronto office sublets – what do space sizes reveal about who’s putting space on the market? - Canada
Greater Toronto office sublets – what do space sizes reveal about who’s putting space on the market?
The Greater Toronto office market has experienced the impact of the evolution of occupiers’ post-pandemic workplace strategies and hybrid-work models in the form of increased available sublease space – up from 2.5 million sf in March 2020 to 9.1 million sf in May 2023.
A closer look at spaces put on the market during those years reveals an interesting shift. In 2020, more than 800 spaces were put on the market but 55% were 5,000 sf or less in size, while the largest spaces (>20,000 sf) accounted for just 6% – implying that smaller firms responded rapidly to the changing circumstances while larger occupiers held off.
Over time, that pattern has shifted and thus far in 2023, the smallest spaces account for only 35% while the largest have increased to 24% of new sublet spaces – an indication that more large firms may be adjusting their space needs to the longer-term trend.