Space Absorption Accelerates as Canadian Economy Recovers Strength
Despite months of significant uncertainty in its business and financial communities, Canada's economy fared substantially better than most through the global financial crisis in 2008 and 2009. Even so, the national unemployment rate rose above 8.5%, real gross domestic product (GDP) contracted, and office vacancy rates increased in all of the country's major urban centres.
- Corporate vacancy rates stabilizing
- Major development projects still on hold
- Tenants seeking strategies to use space more efficiently
- Leasing activity should increase in coming quarters
Market Activity Accelerating As Economy Strengthens
In mid-2008, just before the effects of the recession made themselves felt in Montreal, the downtown area's combined Class "A" and Class "B" vacancy rate had fallen to 4.9%-the lowest rate recorded in recent years. At the time, we speculated that developer interest in new office tower projects would begin to heighten, given that the real estate trends at the time suggested that occupancy rates could very well reach 100% within a few years if no new inventory was brought to the market.
NKF Devencore Real Estate National Portrait - Spotlight on Montreal, Fall/Winter 2010