Greater Toronto Area office absorption remained positive during the second quarter despite vacancy and availability increases, says a new Avison Young report.

But absorption was “meagre,” comprising less than 15,000 square feet. Trophy-class and class A absorption gains were nearly offset by declines in B and C class decreases.

The B and C class absorption declines were due partly to tenant migration to newly delivered buildings.

Downtown Toronto office availability increased 70 bps year-over-year. Meanwhile, downtown vacancy rose rose 270 bps year-over-year to 20%.

Two new office towers were completed during the quarter: 2 Queen Street West, a 29,100-sf site that is fully available, and the fully preleased second phase of Queen Richmond Centre, which comprises 93,100 sf.

Downtown sublet space increased to 23% of the overall market versus 18% in the suburbs.

Just five projects spanning 2.6 million sf remain under construction as the supply pipeline continues to taper off, said Avison Young.