Wednesday, 30 October 2013 00:00
With 200,000 square feet of vacant space and more than three times that being developed, Regina is heading toward higher office vacancies, according to Colliers International.
Regina’s combined office vacancy rate currently sits at 5.2 per cent and is expected to increase to 6.5 per cent by 2014.
“Supply and demand have levelled off, indicating lease rates will as well,” Colliers noted.
Class A space represents 39 per cent of the total inventory in the city’s competitive office market, virtually all in the downtown core. The vacancy rate for Class A buildings has increased to 1.8 per cent, but remains one of the lowest rates in North America.
Net lease rates for existing Class A buildings range from $20 to $26 per square foot.
Class B vacancy has climbed to 7.1 per cent this past year due to the relocation of some government departments. Class B space, which makes up 46 per cent of the market, has a vacancy rate of 7.5 per cent. Net lease rates for Class B space range from $14 to $21 per square foot.
from Western Investor October 2013