COVID-19 takes centre stage and disrupts market dynamics; rising rental rates and decreasing availability likely to reverse
The rapid emergence of COVID-19 in March has introduced substantial uncertainty into the office market across the Greater Toronto Area (GTA). As of publication, schools will be closed through at least early May, while non-essential businesses have been ordered to remain closed until at least mid-April, at the earliest, leaving landlords and tenants to make difficult decisions. Although the magnitude is unknown at this point, it is expected that a downward repricing will occur. As the present focus is on managing the economic impacts of COVID-19, it is expected that tenants and landlords will begin to establish a new market equilibrium once attention has shifted.