The Winnipeg office market’s overall vacancy rate sits at a year-end value of 13.2%, the exact same level it was one year ago. Winnipeg has shown resiliency to this point, as the vacancy rates have decreased each of the last three quarters. Furthermore, the conversions of various properties had an impact on the stability of the vacancies as it reduced the market inventory by 0.7%. On the other hand, the Suburban office market had the largest year-over-year rental growth of 17.7% and contributed the majority of the positive absorption.
- Absorption was positive across both the Downtown and Suburban markets in Q4 combining for a total of 13,042 square feet. However, a contraction in the downtown Class B office market attributed to 317 Donald Street, 15,462 square feet recently becoming vacant.
- Throughout the back half of 2022, despite the market signaling a shift towards stability, an increasing number of large office buildings have been listed for sale with close to 400,000 square feet of deals transacting in Q3 alone. In Q4, the most notable example of a large office offered to the market was 363 Broadway, for nearly 191,000 square feet. It is important to note that this is occurring during a time when the interest rate environment is volatile and uncertain