London Ontario Office Figures Q1 2025

–       As Class B tenants increasingly relocate to Class A office spaces, the market has seen stabilization in Class A. Conversely, the Class C vacancy rate has risen 150 basis points (bps) to 18.7%, driven mainly by the trend of tenants seeking higher-end office space.

–       Average asking net rental rates have stabilized at $13.80 per sq. ft., with minimal movement since 2024.

–       Vacancy rate in the downtown area continues to increase, reaching 32.0% in Q1 2025. This trend is expected to persist throughout the year. TD Bank plans to repurpose a significant amount of vacant space in the downtown area.

–       As suburban deals increase and drive-up prices in the submarket, downtown spaces may become more attractive, potentially reducing vacancy rates and leading to positive net absorption.