Trophy office properties in Canada have the longest lease lengths compared to other office classes
Length of lease terms by class
Length of lease terms by class
- Through 2023, the average lease term for office deals in Canada was 60 months, a decrease from 73 months in 2019. This decline can be attributed to heightened sublease activity and tenants' inclination towards flexible lease terms, resulting in a compression of lease lengths.
- However, despite the overall decline in lease term lengths, significant differences exist among property classes or quality. In 2023, Trophy towers boasted an average lease term length of 75 months, while Class A properties stood at 65 months and Class B/C properties at 52 months.
- This illustrates that not only has the "flight-to-quality" trend kept vacancy rates well below average in the Trophy segment, but owners of Trophy towers are also able to secure more favorable lease terms.
June 4, 2024
