, average downtown office vacancy rates across the country hit 18.4 per cent, while suburban office vacancy rates reached 16.8 per cent.
“So demand is pretty soft…most of the demand for office space is either people that are relocating or renewing their leases,” he said. Amid rising vacancy rates, some tenants have benefited from current market trends by securing higher-quality office space at comparably lower costs, according to the report.
Previously if the economy was strong, the office market would perform accordingly and periods of economic weakness would weigh on the sector, according to Reading. However this may no longer be the case due to uncertainty regarding how often people come to the office, he said.
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