Canada's commercial real estate sector experienced a strong year, with declining vacancy rates in most major markets, according to the latest quarterly report issued by Toronto-based Cushman & Wakefield Canada.
Class A office vacancy rates continued to decline at a rapid rate across the country, moving from 6.8% in the fourth quarter of 2010 to 4.7% in the fourth quarter of this year. Overall national office vacancy rates dipped from 8.8% to 7.3% from the fourth quarter of 2010 to the fourth quarter of this year.
According to Cushman & Wakefield Canada, central Calgary experienced the strongest demand of any major Canadian market, with the vacancy rate taking a massive drop from 12.3% in the fourth quarter of 2010 to 3.9% in the fourth quarter of this year. Central Class A office space also witnessed a major decline in vacancy moving from 10.6% in the fourth quarter of 2010 to 1.6% in the fourth quarter of this year.
‘With forecasted economic growth for Canada at just under three percent in 2012, demand for office space will remain steady, increasing pressure for new property developments, especially in the Calgary and Vancouver markets,’ says Pierre Bergevin, president and CEO of Cushman & Wakefield Canada.