Trophy-class office spaces have the longest leases Canada, says Avison Young in a new report.

That situation is bucking a trend whereby office lease terms are on the decline.

Trophy towers boasted an average lease term of 75 months, while class A properties stood at 65 months and B and C class assets averaged 52 months. By comparison, the average overall lease term was 60 months through 2023, well down from 73 months in 2019.

“This illustrates that not only has the flight-to-quality trend kept vacancy rates well below average in the trophy segment, but owners of trophy towers are also able to secure more favourable lease terms,” said Avison Young.

Toronto-based Avison Young attributed the overall decline to heightened sublease activity and tenants’ inclination towards flexible lease terms, resulting in compressed lease lengths.