Halifax’s overall office vacancy saw a slight increase in Q1, which is now at 14.1%. This can mostly be attributed to an influx of sublease space in the Suburban market. The overall office market has remained fairly stable over the last year, despite post-COVID effects that have slightly cooled office market activity. Return-to-office momentum continued to slow, with some companies implementing full-time hybrid work models.
- While leasing activity for newly built office spaces has remained high, landlords and tenants are facing increased construction costs across all building classes, as well as longer construction timeframes to complete space built-outs.