CB Richard Ellis - Canadian Office MarketView: 1Q2007
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The Canadian office market continues to thrive as market fundamentals have remained solid for the last two years. The overall vacancy rate dropped another 30 basis points for the seventh consecutive quarter to 7.4%. This is the lowest national vacancy rate in over two decades. In addition, fueled by a combination of lowest vacancy rates and steadily rising rents in Calgary, Edmonton and Vancouver, national average rents for downtown Class ‘A’ office space in Canada climbed to their highest level since 2003. Currently at $20.29 psf, the national average asking net rental rates for Class ‘A’ buildings has increased by 7% over the last three years.
National average rents for downtown Class ‘A’ office space in Canada climbed to their highest level since 2003.
HOT TOPICS:
•Tenant incentives have already started to shrink in the midst of this landlord’s market.
•Asking net rents are expected to increase further, especially for space in premier buildings.
•Downtown vacancy rates for most markets in Canada will continue to fall until new supply comes to market.
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National average rents for downtown Class ‘A’ office space in Canada climbed to their highest level since 2003.
HOT TOPICS:
•Tenant incentives have already started to shrink in the midst of this landlord’s market.
•Asking net rents are expected to increase further, especially for space in premier buildings.
•Downtown vacancy rates for most markets in Canada will continue to fall until new supply comes to market.
