Avison Young: Canadian Office Leases Getting Longer
Canadian office leases are getting longer, according to new data from Avison Young.
A reverse trend is occurring after lease terms suffered a “sharp drop” as the COVID-19 pandemic forced companies to adopt work-from-home policies, said the Toronto-based firm. The findings come as major Canadian office markets are grappling with high vacancy levels not witnessed in three decades.
In July, the average lease term rose to 64 months, up from 60 months in the second quarter and 56 months in the first quarter. But lease terms are well down from the average of 72 months achieved between 2015 and 2019.
As Connect reported, GWL Realty Advisors recently found that most Canadian office workers are working on employer premises. Wendy Waters, GWL’s vice-president of research, told Connect that about 96% of office employees are meeting or exceeding return-to-work requirements.
“They’re doing what they’re told, or more than that, in terms of being back,” said Waters.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.