Toronto Suburban Office Figures Q1 2025

–       The suburban market vacancy rate increased 50 basis points (bps) quarter-over-quarter from 20.6% to 21.1%, with the all three submarkets contributing to the negative quarterly result.

–       The negative net absorption figure of 277,000 sq. ft. represents the worst quarterly result for the suburban GTA since Q2 2023, and comes after the market experienced a period of tentative recovery.

–       The office component of the mixed-use residential, retail, and office development at 5250 Yonge Street was delivered with 0.0% of its 119,000 sq. ft. of office space pre-leased.

–       Leases larger than 20,000 sq. ft. have seen a long-term steady recovery with 18 being recorded in Q1 2025 compared to 8 in Q1 2022, in addition to a shift in composition moving away from sublets to new direct and renewal deals.

–       Education tenants have backed off from taking new leases, leaving most large deals to be signed by manufacturing/transportation, insurance, and business services firms.