Declining Office Vacancy Rates Across Canada Drive New Development
The Canadian economy performed solidly throughout 2011, despite the difficulties experienced elsewhere in the world. According to Statistics Canada, the country's economy grew by 2.5%, down from 3.2% in 2010, but surpassing economists' earlier estimates. Over the course of the year all major sectors posted gains, with mining, oil and gas extraction, construction, public sector spending and manufacturing leading the way.
- Office vacancy rates dip below 6%
- Asking rents beginning to edge higher as supply decreases
- New office projects imminent
Falling Vacancy Rates Set Stage for New Development
Although speculation on a double dip recession has largely ceased, it seems as though a degree of uncertainty will continue to characterize the global economy, and recent consumer surveys indicate some erosion in consumer confidence. Nevertheless, the corporate real estate market in downtown Montreal continues to perform relatively well, which speaks to a certain amount of confidence in the local business community. Throughout 2011 Class "A" and Class "B" vacancy rates steadily declined, and by the end of the year, there was some pressure on asking net rental rates to begin to rise.
NKF Devencore Real Estate National Office Market Report, Montreal - Spring/Summer 2012