Office Vacancy Rates Continue To Rise
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According to Colliers Canada's 2020 Q4 National Market Snapshot, office vacancy rates are at an all-time high. COVID-19 is to blame, as it has peaked at 10.8 percent in the fourth quarter of the year.
The report gave a snapshot of what performed and what has fallen short. The average net asking office rent in Q4 of 2020 was the highest since the same period in 2019, reaching $17.72 per square foot. Due to rising downtown sublet space, organizations' need to work in offices is currently trending below 15 percent in downtown cores and around 30 percent in suburban areas.
Roelof van Dijk, Senior Director for National Research & Analytics at Colliers Canada, states that "Although Q4 2020 has brought good news on the vaccine front and removed some of the overall economic uncertainty, we are not in the clear yet. Some asset types like office space and hotels will take longer to rebound than others."
Colliers is hopeful that slowly but surely, office spaces' economic uncertainty will ease in the months to come.
Learn more about the rise in office vacancy rates.
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