As anticipated, deal activity for Q4 was somewhat quiet with vacancy dropping to 28.40%, down only 0.47% from last quarter. We saw a handful of transactions finalize in the last quarter of the year and we expect to see the pace of activity to pick up moving into 2023. Most of the activity occurred in the Class B and C markets both falling to 41.61% and 39.98 % respectively. Class AA vacancy is at 14.93% and Class A vacancy is at 33.32%.
The next couple of years will see increased activity if not due to some companies implementing return to work policies, but because of several sizeable companies with upcoming lease expires. These companies committed to their current premises prior to the pandemic and are now in a position to start their planning process as they consider either a relocation or renewal.