Office Vacancy Rates Across Canada Continue to Track Below 5%
There were some surprises in the Conference Board of Canada's mid-2013 overview of the country's economy. Driven by a boom in oil production and resource development, the province of Newfoundland and Labrador is now leading the way in terms of real Gross Domestic Product (GDP) growth, with 6% growth forecast for this year and 3.4% growth estimated for 2014, outstripping all other provinces in Canada.
- Vacancy rate in greater downtown area rises to 4.7%
- Office space demand continues to be sluggish
- Some tenants realizing value in lease recastings
Leasing Activity Remains Flat in Greater Ottawa Office Market
A number of factors are contributing to a sluggish corporate real estate market in downtown Ottawa. The largest single tenant, the federal government, is engaged in a concerted effort to reduce the amount of space it leases in the region, both by reducing staff and by using the space it occupies more efficiently. At the same time, the Feds have embarked on a major new construction program. In the region's private sector, few new companies are moving into the region and many existing space users are consolidating. Net absorption has been negligible over the past few years. At the same time, two new developments will be delivered to the downtown market over the next 12-18 months and expand the inventory of office space by over 930,000 square feet.
NKF Devencore - Real Estate ⁄ National Office Market Report - Ottawa, Fall/Winter 2013