The Financial Post reports in its Wednesday edition that in its national market snapshot for the third quarter, Colliers Canada has reported a continued rise in national office vacancies, reaching 14.7 per cent from 13.4 per cent quarter-over-quarter. The Post's Shantae Campbell writes that in response to the sluggish market, landlords are increasingly turning to model suites as a strategic tool to attract tenants and expedite leasing, particularly for larger office spaces.
"Model suites have been successful in attracting tenants seeking to reduce upfront costs by securing a more efficient office footprint," notes the report from the real estate investment management firm.
The data indicate that larger offices -- those exceeding 20,000 square feet -- with move-in-ready office spaces have a significantly shorter lease-up period compared with smaller spaces, typically ranging from 10,000 to 20,000 square feet.
This trend suggests that fully furnished, turnkey model suites are helping landlords make a more compelling case to tenants. Adam Jacobs, head of research at Colliers, said, "It's really in vogue right now because it shifts some of the costs onto the landlord," plus, tenants can move in immediately.
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