20 years! That’s how long the GTA will have an oversupply of office space, according to an Altus Group report, commissioned by NAIOP. It’s the long-term effect of the hybrid work model (2 or 3 days in the office). Some findings:
🔸️The availability rate rose from about 10% to 17.5% in Q1 2023.
🔸️35 million SF of office space is currently available to lease–double the amount in Q1 2020.
🔸️By 2041, that surplus could rise to 49 million SF of office space (vacancy rate of 45.7%)–if employees are in the office only 2 days a week.
🔸️Surplus drops to 9.4 million SF (vacancy rate of 31.1%) if employees are in the office 3 days a week.
FYI, 40 million SF of office space is in the development pipeline. Convert unused offices to residences or build new structures or both? Momentum, movement and make things happen. Period. Let’s go.