‒ In stark contrast to the fourth quarter of 2020, net absorption totaled a positive 1.7 million sq. ft. in Q4 2021. These gains even outpace 2019’s quarterly average of 1.5 million sq. ft. when global tech occupiers flocked to Canadian gateway cities.

‒ Sublease levels continue to retreat, primarily in downtown cores which have declined 18% from their peak in Q1 2021. Vacant sublets now represent 3.0% of total inventory nationally.

‒ Vacancy experienced a minor uptick of just 10 basis points (bps) this quarter, ending the year at 15.8%. This is the smallest quarterly increase on record since the onset of the pandemic, signaling a likely turn in the market as three markets reported declining vacancy at year-end: Toronto, Vancouver and Ottawa.

‒ 2.4 million sq. ft. of new supply was delivered in the fourth quarter. With over 70% pre-leased upon completion, these projects helped push absorption into positive territory for the first time since Q1 2020.