Summary of Colliers International Q3 Office Market Report
November 21, 2012 @ 12:36 AM by:
Summary of Colliers International Office Report
- Leasing remained flat, highest activity was tenant renewals.
- Slight increase in availability rate to 8.8%.
- Suburban Class A office space showed negative absorption of 9,955 sf
- Over 1,000,000 sf of suburban class A office space is currently under construction in suburban markets.
- Downtown vacancy rate is low at 3.5% making it difficult for tenants to move around.
- Investment activity was slow with two notable Class C buildings of over 160,000 sf sold
- Rental rates remain constant
- 26,199 sf of absorption for total of the suburbs
- Burnaby’s activity mostly tenant renewals.
- Burnaby’s vacancy rate stands at 11%
- Burnaby was the most notable investment market of the suburbs.
- Acquisition included Bosa Developments purchase of 4488 Halifax with 18,299 sf of land and Sperling Plaza’s 132,000 sf from Bentall Kennedy.
Upcoming: HSBC is moving into the Broadway Tech Center, and the Provincial Health Authority is relocating to 1795 Willingdon Avenue, both moves to lower vacancy in the Burnaby market to a more balanced level.
Advice for landlords regarding workspace design trends:
- Tenant layouts should be open and less segregated with collaborative meeting rooms replacing private offices.
- Average sf office space per person is shrinking, expected to reduce to 100 sf per person by 2017