Canadian Office Vacancy Rate Begins to Climb
Since 2005, we have been tracking a steady decline in corporate vacancy rates in Canada's major cities. Indeed, in mid-2008, these vacancy rates were at or near record lows. However, in the last six months of 2008 this decline was halted as the global economic crisis began to make its effects felt across the country.
- Vacancy rates climb for the first time in 5 years
- No new projects on the immediate horizon
- Tenant opportunities will increase over the next six months
Global Economic Crisis Cools Downtown Montreal Office Market
In mid-2008, the vacancy rate in downtown Montreal's Class "A" and Class "B" office buildings was only 4.9%, lower than at any other time on record. Over the preceding four years, space had been absorbed at an average of 653,000 square feet per year and we speculated that, should absorption continue at the same pace, the occupancy rate in the downtown core would approach 100% in less than three years. Given these circumstances, we expected that developer interest in the city's core would escalate in the months ahead.
Devencore NKF Real Estate National Portrait - Spotlight on Downtown Montreal, Spring/Fall 2009