Canadian Office Market Begins to Stabilize as Economy Shows Signs of Recovery
Over the past 18 months the character of Canada's corporate real estate sector has been significantly changed by the global economic crisis. At the end of Q2 2008 the vacancy rates in Class "A" and Class "B" office space were at or near record lows in most of the country's major cities, but by the end of 2009 those rates had spiked.
- Vacancy rate in downtown Ottawa 2.5%
- Downtown asking rental rates holding steady
- Kanata market most affected by economic uncertainty
- Tenants increasingly treating real estate as strategic tool
Tenant Opportunities Vary Greatly Across Greater Ottawa Area
The corporate real estate scene in the Greater Ottawa Area is as starkly divergent as any in the country.
As the nation's capital, the City of Ottawa is home to various departments of the federal government as well as the numerous ancillary businesses that service and support it. As a result, it was largely shielded from the turbulence generated by the economic crisis that hobbled the rest of the country's economy through 2009. In fact, the occupancy rate in downtown Ottawa's Class "A" and Class "B" office buildings is currently running at approximately 97.5%, the highest in all of Canada.
NKF Devencore Real Estate National Portrait - Spotlight on the Greater Ottawa Area - Spring/Summer 2010