February 10, 2021, by Neil Sharma
Altus Group estimates a 10-20% decline in the demand for downtown office space in Canada which could result in the extensive redevelopment of existing buildings for decidedly different purposes.
“What you’ll see is potential for the repurposing of these buildings, where owners go for rezoning and some redevelopment into purpose-built multi-residential or some condos,” Colin Johnston, president of research, valuation and advisory at Altus Group, told CREW. “[In Toronto] there’s some weakness in the condo market right now, but it’s more likely landlords of B- and C-class office buildings look to conversion for purpose-built apartment buildings.”
Altus Group’s report estimates there could be a 10-20% decrease in office space this year, a number that could grow in 2022, thanks to hybrid arrangements that would see employees work remotely some days and in their office other days.
What does this mean?
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