Office Vacancy Rates Continue to Decline in Canada's Major Cities
Even though uncertainty seems to be the new normal in global economic matters, the corporate real estate markets in Canada through 2011 have so far remained relatively healthy. Indeed, the overall vacancy rate in Class "A" and Class "B" office buildings in Canada's major cities-including Toronto, Montreal, Vancouver, Calgary, Edmonton, Winnipeg and Halifax-dropped from 6.8% to 5.4% over the first half of the year. Total vacant space fell from 14 million square feet to just over 11 million square feet, while the total inventory Newmark Knight Frank Devencore tracks in these cities increased by approximately 300,000 square feet.
- Office vacancy rates continue to decline
- Asking rents may begin to edge higher
- New office development underway; other projects in pre-development
Downtown Montreal Office Market Shows Strength
While the world's financial markets continue their roller coaster ride, downtown Montreal's corporate real estate market continues to show signs of strength. In both Class "A" and Class "B" buildings vacancy rates are dropping, asking rental rates could begin to edge upwards, and some landlords may be less inclined to offer the range of leasing inducements that were common at the end of 2009 and early in 2010.
Real Estate National Office Market Report - Montreal, Fall/Winter 2011