Canadian office tenants want more lease concessions as vacancy rates remain high, says a new Deloitte report.
Landlords have already provided many inducements, such as free rent for a month and improved amenities. But tenants are seeking more benefits, Deloitte found in a national tenant survey.
The survey was conducted among top executives from 100 Canadian commercial real estate owners and tenants with at least $50 million in annual revenue.
The Deloitte findings come as rents in some major Canadian markets, such as Calgary and Toronto, have hit their highest points in decades. A Colliers report predicts that the national average rental rate will peak at 15% in 2024 and then begin to subside.
“It’s a tenants’ market right now,” John Duda, president of Colliers Canada, told The Globe and Mail.
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.