Vacancy gap between AAA, lower office classes a record 890 BPS

AAA office assets in downtown Toronto, Montreal, and Vancouver have outperformed lower-grade buildings in vacancy, availability, and rental resilience, with vacancy at 7.1% versus 16% for non-trophy buildings. Tenants prioritize quality and amenities over cost, favoring premium spaces. Class-B and aging Class-A offices face pressure as demand consolidates in top-tier buildings. Return-to-office mandates by larger firms are boosting demand, while some landlords convert underperforming offices to residential or offer turnkey suites for smaller tenants.