report<\/a> from Colliers shows downtown Toronto\u2019s AAA vacancy is now only three per cent, compared to Vancouver which is now 4.9 per cent.\u00a0<\/p>\nClass A buildings are typically classified as buildings with higher quality and offer a variety of amenities, according to Colliers.\u00a0<\/p>\n
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Nicholas Kendrew, Senior Vice President of the Office Investment Group at Colliers, calls this a \u201cflight to quality\u201d that many companies are parking in as a result of return to office mandates.<\/p>\n
\u201cThere\u2019s sort of a bargain between employers and employees that if we\u2019re going to ask you to come in, we\u2019re going to provide you a very high quality of space to accommodate you, to make it more attractive for you to come back into the office,\u201d Kendrew said to Now Toronto on Monday.\u00a0<\/p>\n
In Toronto\u2019s case, Kendrew says most AAA classified office buildings are typically located next to Union Station, which makes them an ideal fit.\u00a0<\/p>\n
\u201cA lot of corporate employees are commuting from outside the city using GO Transit. So I think there really is a premium as well for properties that are located with very close proximity to Union Station,\u201d he said.\u00a0<\/p>\n
In recent weeks major banks like RBC, Bank of Montreal, Bank of Nova Scotia, TD have said they will have their employees back in office four days a week by fall.\u00a0<\/p>\n
According to Colliers, this will encourage other companies to spend more time at the office, since banks are seen as \u201ctrendsetters.\u201d\u00a0<\/p>\n
\u201cThe FIRE sector, meaning finance, insurance and real estate companies, will follow, and we\u2019ll see occupancy tick up,\u201dDaniel Holmes, President of Brokerage, Valuation & Advisory Services said in a report.<\/p>\n
However, as more companies return to the office, Kendrew says that a supply crunch could soon approach, making it harder for companies that are not returning to office to do so in the future.\u00a0<\/p>\n
Kendrew says there already isn\u2019t a lot of space available in AAA class buildings.\u00a0<\/p>\n
\u201cThe first movers will definitely have an advantage,\u201d Kendrew said. \u201cIf you decide 12 months from now then the space that is available for those people will probably be less than desirable in a location that will be difficult to get to.\u201d\u00a0<\/p>\n
However, looking forward, Kendrew says that suburban office locations may benefit from this changing market despite previously being looked down upon, due to more people moving out of the city.<\/p>\n
\u201cThey\u2019ll almost be like outposts for some of these companies.. maybe there\u2019s some employees that live in Milton that they really want to retain, but they don\u2019t want to commute downtown daily,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"As more and more companies enact return-to-office mandates, premier office spaces are becoming more scarce, according to a…\n","protected":false},"author":2,"featured_media":31490,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24346,43,44,24347,41,39,42,40],"class_list":["post-31489","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-colliers","tag-headlines","tag-news","tag-office-spaces","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/31489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=31489"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/31489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/31490"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=31489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=31489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=31489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}