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.
- Downtown vacancy rates nearly double over past 12 months
- Tenants may begin looking at blend & extend opportunities
- Kanata market benefits from one-time boost as tenants vacate former Nortel campus
Shifting Dynamic in Greater Ottawa Office Real Estate Market
Over the past 18 months the dynamics of the corporate real estate market in the Greater Ottawa area have been undergoing a fairly dramatic change. As recently as mid-2011, the combined vacancy rate for Class "A" and Class "B" office space in the city's downtown district was the lowest in the country, at 3.0%, and less than 545,000 square feet of space was available for lease or sublet. In the 12 months since then, the vacancy rate has nearly doubled and availability has climbed to over a million square feet.
NKF Devencore, Real Estate National Office Market Report - Ottawa, Fall/Winter 2012