Top-Tier Office Space Continues to be Absorbed Across Canada
While the pace of growth of the Canadian economy slowed somewhat in 2011 and into the first half of 2012, corporate real estate markets in most of the country's major cities were very active. Between mid-2011 and mid-2012, vacancy rates fell significantly in Montreal, Toronto, Vancouver, Calgary, Edmonton and Winnipeg. The only cities reporting an increase in vacancy rates were Ottawa and Halifax, though in the case of the latter city the rise was almost entirely due to new inventory coming onto the market.
- Office vacancy rates down to 5.8%
- First major office tower projects
- Condo projects absorbing prime office development space in downtown district
Two New Towers in Progress as Downtown Office Inventory Continues to Shrink
The dynamic of downtown Montreal's office market is about to undergo a significant shift. In July, developer Cadillac Fairview Corporation announced that it is going ahead with a 26-storey, 514,000-square-foot office tower that will be built between Windsor Station and the Bell Centre. The half-hectare site on which the tower will be constructed is part of a multi-phase, $1 billion project that will combine office, residential and entertainment facilities.
NKF Devencore Real Estate National Office Market Report, Montreal - Fall/Winter 2012