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Why some tenants are leasing office space in shopping malls

Office rent in Toronto is still among the highest in North America. A growing number of tenants are finding a smarter alternative, and it’s hiding in plain sight. Inside shopping malls.

From retail-to-office conversions in Ontario to adaptive reuse of former department stores, forward-thinking organizations are quietly locking in lower costs, richer amenities, and better talent access without sacrificing quality of space.

What’s inside?

The Opportunity in "Value" Space

Former cinemas, basements, and back-of-house zones. The best unconventional office space in Canada is hiding in plain sight inside regional malls.

Cost Benefits: TMIs, Operating Costs & Fit-Out

How leasing office space in a shopping mall often delivers significantly lower occupancy costs than comparable traditional buildings in Ontario.

Employee Experience & Amenity Richness

Food, fitness, pharmacy, and entertainmentโ€”the amenity-rich environment of mall office space that are all within a short walk.

Impact on Satisfaction, Engagement & Retention

The quantifiable link between transit-accessible office locations, daily experience, and retention and why it favours mall-based offices.

ENCOR Advisors specializes in strategic commercial real estate advisory for growing enterprises seeking operational efficiency, competitive advantage, and alignment with evolving market opportunities.

From traditional towers and business parks to unconventional environments like malls and adaptive reuse projects, ENCOR helps organizations make location decisions that serve their people, brand, and long-term objectives.

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About the author

Hey there ๐Ÿ‘‹ I'm Mark Petznick, an Executive Vice President and a Founding Partner at ENCOR Advisors. My focus is creating strategies to reduce risk and occupancy costs within leases while creating flexibility. With 23 years of global corporate real estate (CRE) experience, I strictly advocate for office and industrial tenants.If there is anything ENCOR can help with, please reach out to me at ๐Ÿ‘‰ mpetznick@encoradvisors.com ๐Ÿ‘ˆ or feel free to connect on LinkedIn