5.8K 
Although it seems that this headline has been used time and time again, the Toronto office market has yet again broken its own record low vacancy, hitting 2.2% in Central Toronto in Q4 2019. Wrapping up 2019, the Greater Toronto Area experienced 358,079 ft² of positive net absorption in the fourth quarter which helped close the year with 1,933,881 ft² of positive net absorption.
Although previously reported to be increasing in Q2, the overall GTA office vacancy rate fell in step with the Central rate, dropping 10 basis points (bps) to 6.7%. North Toronto saw one of the strongest increases, reducing its relatively high vacancy rate from 8.6% to 7.8% (80bps).
Anticipated projects like 16 York and The Well have both been reported 78.6% and 78.7% pre-leased according to CBRE’s latest office report. 82% of the office space projected to see occupancy before 2024 (9.1 million square feet) is already pre-leased, indicating this new influx of supply will do little to alleviate demand in the short-run.
A number of high profile leases have been signed in the 1st Quarter, with the biggest stories being Google leasing all 400,000 square feet at 65 King East and Equitable Bank taking 175,000 ft² at what was formerly called The Shift at 25 Ontario Street, taking anchor tenancy and renaming the building EQ Bank Tower.
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