Office vacancy rates climb in Toronto and Vancouver as companies shed space

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Both cities’ downtowns hollowed out during the pandemic with office employees working from home

. At the same time, a slew of new skyscrapers opened and flooded the cities with new office space. Today, businesses are starting to pull back as central banks reduce access to cheap credit. And tech companies, once responsible for driving the frenetic office demand, are now eliminating jobs after years of expansion.

Mr. Krawitz said that has “nothing to do with what I would call the new reasons for sublet space, which is the hybrid work.” PricewaterhouseCoopers is trying to make another cut to office space at its Canadian headquarters in downtown Toronto. The accounting firm already got rid of two floors in the first year of the pandemic.

Financeit did not respond to a request for comment. Teachers spokeswoman Sheena Kasparian said the fund intentionally secured more space than it needed to allow for future growth. But now it wants to sublet a portion because “doing so is attractive while enabling flexibility for the future,” she said.

 

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