O, Canada! Office Market Up North Buoyant, But Dull

Our neighbors to the north have a stronger office market and a brighter outlook for said market going into 2009, according to a CB Richard Ellis analysis. Highlights from the analysis, part of an invitation-only Webcast held Oct. 14, include:

  • Canada’s commercial real estate market is faring better compared to other downturns, and in comparison with the U.S., with national vacancy rates of 6.3 percent (office) and 6.2 percent (industrial).
  • The bid/ask gap is wider than at any point over the past decade, due to the disparity between buyer and seller expectations.
  • However, all property sectors are performing relatively well in Canada, and once sellers adjust their asking prices, activity should accelerate.
  • With 140 million square feet of inventory, the Toronto office market is performing relatively well today.

To read the rest of the Canadian office market analysis, click here (PDF).