Overall Office Vacancy Rates Across Canada Edge up to 6%
Over the course of 2013, the combined Class "A" and Class "B" vacancy rate in Canada's major cities edged up by approximately 1.5 percentage point, from 4.5%-5.9%. Newmark Knight Frank Devencore tracks 972 Class "A" and Class "B" downtown office buildings across the country, which collectively provide just under 210.5 million square feet of space.
- Downtown vacancy rates continue to climb
- Federal government continues to reduce office space
- Tenant decision cycles increasing
Supply of Office Space in Downtown Core Outstripping Demand
With significant new office developments coming online and adding over 900,000 square feet of new space to the downtown Ottawa real estate market, vacancy rates are continuing to climb. Business growth is relatively weak, and the federal government-the single largest tenant in Ottawa-is continuing to reduce the amount of space it uses, so supply is clearly outstripping demand.
NKF Devencore, Real Estate National Office Market Report - Ottawa - Spring/Summer 2014