London Ontario Office Figures Q4 2023

January 19, 2024 5 Minute Read

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       The vacancy rate in London’s core rose 130 basis points (bps) quarter-over-quarter to 28.5% with Class A and B vacancies acting as the main drivers. London’s suburban vacancy rate increased slightly by 40 bps to 10.6%.

       The overall average net asking lease rate remained virtually unchanged over the quarter at $13.72 per sq. ft.

       London recorded negative 113,000 sq. ft. of net absorption, marking the third consecutive quarter of negative net absorption, primarily due to the vacancy increases in London’s core.

       After sitting vacant for years, a demolition permit has been approved for Farhi’s 145,000 sq. ft. office building at 369 York Street, this 3.7 acre site is in a prime downtown location for a residential redevelopment. Interestingly, the adjacent 301 York Street, a 4.3 acre parking lot owned by a different landlord, has been on the market for sale since early 2022 as another potential residential development. If either of these projects come to fruition, they would aid in transforming London’s ailing downtown area.