Regina’s office market continues to adapt to challenging market conditions as landlords compete to fill excess vacancy in the downtown and suburban submarkets. The market remains favourable for tenants who are benefiting from high incentives and competitive rental rates. Space and footprint requirements are major considerations as businesses re-evaluate their company needs for an ever-adapting workplace and post-COVID environment.
- Overall, vacancy rates have dropped substantially quarter over quarter, as well as year over year. However, as businesses re-evaluate their space needs for the near and distant future, vacancy rates are expected to increase.
- Similar to vacancy rates, rental rates have dropped across both submarkets. Average asking rental rates for Downtown space sit at $14.93 per square foot and Suburban rates are $11.78 per square foot. The overall market averages $14.50 per square foot for asking net rent.
- Landlords are expected to continue engaging with their tenants with the shared goal of space retention as hybrid, co-working and work-from-home office occupancy models further challenge accelerated absorption for the foreseeable future.