Bifurcation evident as Toronto's overall office market continues to exhibit mixed performance
During the third quarter, office-using employment growth continued at its recently elevated pace, coming in at 4.9% year over year as of the latest read in August. From July of last year up until May, the annual growth had not yet surpassed the 2.0% level, but Toronto has now experienced four straight months of year over year growth ranging from 3.4% to 6.2%. With return to office mandates becoming more widespread, coupled with better office-using employment growth as typically a leading indicator, this could point to a much-needed sustainable boost for office demand. However, third quarter leasing volume softened to 1.1 million square feet (msf) for the lowest level seen since Q3 2021.