Office Space Vacancy in Ottawa Rises – But Canada Remains Fearless
Canada’s largest real estate brokerage, Newmark Knight Frank Devencore, published a study yesterday highlighting that the office vacancy rate in downtown Ottawa is set to rise over the next 2-3 years.
On the surface, this may sound like a negative, however, office brokers are looking to the future outcome of this extra space, which will provide opportunities for entrepreneurs and start-up businesses, who were yet to exist over the past decade.
There is also rumours of office towers and skyscrapers to be built for the private sector, who will vacate their current business centres to make more space for up and coming companies.
Devencore Real Estate Services Ltd, predict that vacancy rates in Ottawa may double over the next couple of years resulting in lower rental rates that will allow tenants “a greater range of office space opportunities”.
In suburban areas of Ottawa, vacancy rates are set to fall. Kanata, which was recently amalgamated into Ottawa in 2001, has seen a 1.3% drop over the last year. However, Newark Knight Frank Devencore see this fluctuation as a “temporary and limited phenomenon”.
Corporate real estate markets in Canada as a whole have remained healthy in 2011. The overall vacancy rate for Class A and Class B office space combined, dropped from 6.8% to 5.4% over the first half of 2011, with the total of vacant space falling from 14 million square feet to 11 million square feet.
Ottawa’s calm approach to the rise in vacancy rates bodes well for the city, and sets a great example for the rest of the world to follow.
To find out more about office space in Ottawa, talk to Search Office Space now on 0800740 80 80 to discuss your requirements.