The office vacancy rate continues to tighten with demand outpacing supply. No further office developments under construction in the downtown region.
- Over 50% of new supply added this quarter was absorbed by a balanced mix of government leases, co-working and the growing tech sector.
- Rental rates continue to see upward pressure as a result of the demand and supply imbalances.
- Suburban office vacancy declined by 30 bps and downtown up 40 bps temporarily due the addition of Capital Park phase two. Overall vacancy is forecast to decline further with numerous developments in the planning stages until new supply reaches the market.