Market Size of Canada Office Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Office Real Estate Market Analysis
The size of Canada Office Real Estate market is USD 20 billion in the current year and is anticipated to register a CAGR of over 8% during the forecast period.
- The demand for office space is obviously quite high because Canada is home to some of the world's biggest and most successful firms. Offices are another asset class that is quite well-liked by investors. The coronavirus (COVID-19) epidemic caused the Canadian office sector to suffer, but it is now on the mend. Almost 59 billion Canadian dollars are anticipated to be invested in commercial real estate in Canada in 2022, an increase over 2020 but still much below levels in 2019.
- The coronavirus (COVID-19) pandemic resulted in a rise in office vacancy rates for the second consecutive year in 2021. Many occupiers put off their expansion plans or lease renewals at the start of the epidemic due to the economic unpredictability, but since then, the situation has shifted and market fundamentals are gradually improving.
- From a generally consistent cost of CAD 20 CAD (USD 14.71) in previous years to more than 24 CAD (USD 17.65) in 2021, the net asking rent per square foot for Canadian office space has similarly climbed. The demand for premier office space is still high, and in 2021, Canada supplied roughly six million square feet of new office space.
- There are several large firms in Toronto, the largest city in Canada, including, to name a few, Capital One, IBM, and Unilever. The suburbs are where the majority of the city's office space is situated.
- Downtown offices are more in demand as evidenced by the fact that suburban office buildings have much greater vacancy rates than downtown office buildings. Vancouver has the majority of its offices downtown, unlike Toronto.
- Despite having a significantly lower population than Toronto, Vancouver is renowned for being quite crowded and having a vibrant downtown. Unsurprisingly, Vancouver's downtown office space costs roughly CAD 50 (USD 36.78) per square foot, which is significantly more than the country's average.
