A report from Colliers International says that the Prairies markets continue to struggle due to low commodity prices but that while vacancy rates in central business districts of Calgary (22 per cent), Edmonton (14 per cent) and Regina (15 per cent) continue to rise, things are more stable in Saskatoon.
The city has seen sharp decline in occupancy, but this year vacancy rates have stabilized to around 16 per cent. Outside the city core though the rate is around 1 percentage point lower but at a cost; older suburban units are renting for as little as $10 per square foot.
“Much of the vacant space we are seeing is the result of firms reducing their footprints or closing due to funding cuts,” commented Tom McClocklin, president and managing director of Colliers International Saskatchewan. “Although there has been a shift to suburban areas, the vast majority of downtown tenants continue to renew their spaces under more favourable circumstances.”
More market update:
The office market in Saskatoon is healthy but there is a trend away from the downtown core.