Deloitte: Office Tenants Seeking More Concessions
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.