It says the rate is far higher than the 2.1 percent the market was at in the first quarter of 2020, before the COVID-19 pandemic led to a surge in vacancies.
The firm says that along with about 9.9 million square feet of vacant office space, available sublet space is up about 67 percent from last year to 4.5 million square feet to bring the total availability in the core to 17.5 percent.
The greater Toronto office market had a vacancy rate of 13.6 percent, while adding in available sublet space, which was up 42 percent from last year, brings total availability to 18.1 percent.
With demand for traditional office space still below historical levels, the firm says some developers have repurposed some new office construction projects to cater instead to lab space for the life sciences sector.
Avison Young says it expects availability and vacancy to continue rising in the short term.