November 5, 2024

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Market Highlights

• Vacancy within the Downtown core rose 100 basis points to 11.8% and can be attributed to a few notable sublease vacancies which reversed the 1.0% decline recorded over the prior three quarters
• An influx of 301,000 sq. ft. of vacant new supply in the suburban markets played a significant part in the 160 basis points increase to the overall vacancy rate of 10.0% in the suburban markets
• The vacancy spread between the Downtown core and suburban markets has started to narrow in recent quarters and has now closed to only 180 basis points, approaching an inflection point that was last crossed in Q4 2021 when the Downtown core first surpassed suburban market vacancy
• All construction activity is taking place in the suburban markets and amounts to 763,000 sq. ft. and is expected to deliver by the end of 2025 and is only 35.8% pre-leased
• 837 Beatty Street is the only Downtown development, and is a 30,000 sq. ft. mass timber boutique building delivering by the end of 2025