Downtown availability declined to 15.5%, with vacancy at 13.1%, driven largely by more than 1.6 million square feet of new leasing.
Early renewals also gained traction as tenants tried to lock in costs ahead of expected rent growth.
By renewing three to four years before expiry, occupiers “sought to secure their premises for the long term in the face of what is expected to be a competitive market for space in a few years’ time,” the report said.
That pattern created a pipeline of stable income for lenders underwriting longer‑term loans against best‑in‑class assets.
Users moved from tenants to owners
On the investment side, Avison Young pointed to “a recent trend of users taking the opportunity to own their space, particularly in suburban markets,” citing the sale of 1595 Clark Blvd. in Mississauga as an example.