Office vacancy rates falling

A sharp rebound in Calgary helped push the office vacancy rate in Canada down to 8.6 per cent in the second quarter of this year, according to a report by CB Richard Ellis.

TORONTO — A sharp rebound in Calgary helped push the office vacancy rate in Canada down to 8.6 per cent in the second quarter of this year, according to a report by CB Richard Ellis.

The rate compared with 9.3 per cent in the previous quarter and 10.1 per cent in the same period a year ago.

“As a whole, the national trend for the office market is improving fundamentals, however, the performance of Calgary’s office market is absolutely staggering,” CBRE vice-chairman John O’Bryan said in a statement.

“Fundamentals have improved so much across the board that construction activity has picked up, or is expected, across the country, with a new office project breaking ground in downtown Montreal, multiple projects commencing in Toronto, and the expectation of projects to break ground in both Vancouver and Calgary.”

In Calgary, second-quarter vacancy was 9.4 per cent, the first time it was below 10 per cent since the first quarter of 2009, and down from 15.7 per cent a year ago.