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.
â€œWhat youâ€™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,â€ Colin Johnston, president of research, valuation and advisory at Altus Group, told CREW. â€œ[In Toronto] thereâ€™s some weakness in the condo market right now, but itâ€™s more likely landlords of B- and C-class office buildings look to conversion for purpose-built apartment buildings.â€
Altus Groupâ€™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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