REPEAT/Cushman & Wakefield: National Average Shows Significant Decline in Office Vacancy in 2011
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Strongest Demand Seen in
Canada’s commercial real estate sector experienced a strong year, with declining vacancy rates in most major markets, according to the National Office Trends, Fourth Quarter Report released today by Cushman &
Class A office vacancy rates continued to decline at a rapid rate across the country, moving from 6.8% in Q4 2010 to 4.7% Q4 2011. Overall national office vacancy rates dipped from 8.8% to 7.3% from Q4 2010 to Q4 2011, a significant drop.
“With forecasted economic growth for
In central
“The downtown market is very tight right now, giving few options to tenants looking to expand or relocate in the Class A or AAA categories,” says
“In the suburbs the market has remained active this quarter, though there’s a lot of space available, with landlords throwing around big inducements to tenants. However, hangover from the 2008 recession, combined with looming global economic uncertainty has tenants taking a wait-and-see approach. Most businesses in the core and the suburbs alike are waiting to see what the first two quarters of 2012 will bring.”
“Energy sector growth fueling the demand for space and record absorption has caused the owners of 8th Avenue Place to announce construction of the 850,000 SF second tower of
Demand has been strong in
“Throughout 2011 demand for office space in
“Though still in recovery mode, leasing activity in the suburbs is beginning to pick up,” adds Walker.
“Momentum in Winnipeg’s downtown office market is very positive. The combination of several factors, (such as the downtown revitalization, the expansion of the convention center, and the return of the
Leasing demand for all classes of office space in Toronto’s central market remained very active this quarter. Office vacancy for all classes declined from 5.0% in Q3 to 4.7% in Q4 2011; with the Class A market declining to 4.5%.
“Given the low vacancy environment, we are seeing upward pressure on rental rates going in to 2012 and the likelihood that new office developments will be announced in 2012,” says
Suburban market leasing activity also picked up in Q4 2011 as major tenants in the insurance and engineering sectors committed to additional space in
Year-to-date absorption in the suburbs will come in close to 850,000 SF, representing a very active year and huge increase in activity compared to 2010, and the overall suburban vacancy rate will end the year at 8.4%.
“Leasing and development activity in the suburbs showed signs of improvement this year, which is a welcome turn of events from this time last year,” says Morse.
In
In the suburbs, vacancy took a slight dip from 8.7% in Q3 to 8.5% this quarter.
In
In the suburbs, vacancy took a slight dip from 8.7% in Q3 to 8.5% this quarter.
“This quarter was quiet for the most part with no major transactions closing in the central market,” says
“All indications are that Morguard is going ahead with its development at
“In the west suburbs, Smart Technologies has put their entire building of 258,000 SF on the market for sublease. In contrast to that, approximately 65,000 SF of space that was previously available from
In
“Montreal had a great year overall compared to 2010, however the fourth quarter was slightly less active than we had expected,” says
Class A space in
“These movements in ‘market class’ reflect an overall flight to quality due to the fact that class A office space remains relatively affordable in Halifax,” said says
Moncton’s office vacancy rate took a jump from 8.0% in Q4 2010 to 9.3% in Q4 2011, with 34,862 SF of space being returned to market.
“In Moncton, land is relatively cheap and well capitalized occupiers tend to build their own offices in, or near, the city. Office space absorption will stay mild in
In
“Fredericton has had a very tight office space market for more than 30 years. However, the newly built office space means that the local market has now come back to balance.”
“The St. John market is nearing the end of its “hangover” from 2006 / 2007 when office space was significantly overbuilt in anticipation of large projects that did not materialize. The pace of negative absorption of office space has cooled off considerably and it is anticipated that the market will come back into balance in the near term. As the head office location for Irving, It is highly likely that
“Overall, the economy in
St. John’s
The overall office vacancy rate in St. John’s continues to decline, hitting a low 3.3% in Q4 2011, down from 4.7% in Q4 2010. St. John’s has the lowest overall office vacancy of any of the cities within the report.
“Demand continues to be primarily driven by the offshore oil industry and the
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About Cushman & Wakefield
C&W is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Corporate Occupier & Investor Services, including integrated real estate strategies for large corporations and property owners; Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognised leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www.cushmanwakefield.com.
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Source: Cushman & Wakefield
Copyright: | Copyright Business Wire 2011 |
Wordcount: | 2348 |
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