Changing dynamics that were seen in 2016 continued in the first half of 2017 according to global real estate firm Avison Young.
The Toronto-based firm said that Canada’s commercial real estate sector’s prevailing trends include urban intensification, transit-oriented development, consolidation, workplace design and millennials' live-work-play preferences.
"Though demand from traditional sectors has been patchy, technology and the co-working craze are transforming the marketplace, garnering an increasing share of the leasing pie. Co-working space providers have expanded rapidly due to the need to cater to startups, entrepreneurs and the increasing demand for affordable workplaces on flexible lease terms,” said Bill Argeropoulos, Principal and Practice Leader, Research (Canada) for Avison Young.
These tech firms want to be based in modern downtown towers rather than traditional older premises on urban fringes.
On absorption of offices, losses in some western markets, largely in Calgary and Edmonton and, to a lesser extent, in Winnipeg, were offset by gains in Toronto, Montreal and Vancouver in the first half of 2017.
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