Â鶹ӰÊÓ

Skip to main content

Office vacancy rate could peak in 2024 as hybrid work models gain popularity: report

Office towers, condos and apartment buildings are seen in downtown and the west end of Vancouver, on Thursday, January 19, 2023. (THE CANADIAN PRESS/Darryl Dyck) Office towers, condos and apartment buildings are seen in downtown and the west end of Vancouver, on Thursday, January 19, 2023. (THE CANADIAN PRESS/Darryl Dyck)
Share
TORONTO -

A new report by Colliers Canada predicts the national office vacancy rate could peak at approximately 15 per cent by the end of 2024 as the rise of hybrid work models prompt companies to reduce their office space.

It says office vacancy in Canada has risen from around eight to 14 per cent since 2020, but that figure is barring a major economic downturn over the next 18 months.

Economic growth is tempering vacancy growth, even as hybrid work becomes more popular, thanks to businesses expanding and new companies entering the market.

Fifty-five per cent of companies say they have finalized their approach to balancing in-office and remote work, up from 49 per cent in the fourth quarter. Eighty-six per cent of tenants indicated they are satisfied with their current hybrid arrangements.

The report says the average number of days companies are mandating employees to work at the office increased from 2.5 in late 2022 to three last quarter.

Colliers says commercial tenants are 10 percentage points more likely to renew a lease for each additional day their employees work at the office, with companies most likely to keep their current square footage of space if staff work in-office at least four days per week.

This report by The Canadian Press was first published Aug. 15, 2023.

CTVNews.ca Top Stories

Canadian musician Jacob Hoggard has been found not guilty of sexually assaulting a young woman in northeastern Ontario eight years ago. The former Hedley frontman had pleaded not guilty to sexual assault.

Police have arrested a Toronto woman in connection with three recent homicides and investigators say that they believe two of the victims may have been 'randomly targeted.'

The body of a British Columbia mountain climber has been located and recovered after the 39-year-old man was reported missing during a solo climb on Washington state's Mount Baker earlier this week.

A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.

A Saskatchewan man living in the United States has pleaded guilty to possessing child pornography after he unknowingly provided disturbing videos to an FBI agent he thought was a pedophile.

Local Spotlight

Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.

From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.

A husband and wife have been on the road trip of a lifetime and have decided to stop in Saskatchewan for the winter.

The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.

A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.

Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north

What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.

The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.

New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.

Stay Connected