Colliers Canada National Market Snapshot 2021Q1
Q1 2021 brought both the vaccine rollout but also renewed lockdowns, however, this time around many businesses knew how to respond, resulting in minimal job losses. Although sublet space remains an issue, the flood of space coming to the market has slowed, and some believe as 2021 progresses, and employees start returning to the office, we will start to see more sublet offerings being removed from the market. Colliers Canada is pleased to present our 2021 Q1 National Market Snapshot, with national statistics and regional market insights including vacancy rates and average net asking rents for office and industrial fundamentals in 11 key markets across Canada.
Q1 2021 brought both the vaccine rollout but also renewed lockdowns, however, this time around many businesses knew how to respond, resulting in minimal job losses. Although sublet space remains an issue, the flood of space coming to the market has slowed, and some believe as 2021 progresses, and employees start returning to the office, we will start to see more sublet offerings being removed from the market.
Colliers Canada is pleased to present our 2021 Q1 National Market Snapshot, with national statistics and regional market insights including vacancy rates and average net asking rents for office and industrial fundamentals in 11 key markets across Canada.
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Vacancy Rate
Vacancy Rate
Q1 2021
Halifax Market
Key Findings
• Despite the Maritime bubble, Halifax continued to feel the effects of the
pandemic, with office vacancies rising and many organizations continued
working from home. Several multi-floor office tenants (predominately in the
digital and tech sector) are offering their space on the sublet market.
Office Fundamentals
Vacancy Rate Average Asking Net Rent
16%
15%
14%
13%
12%
11%
14.8%
$16.05
$18
$17
$16
$15
$14
$13
Avg. Asking Net Rent (PSF)
• Although work from home is less prevalent in the Maritimes than in the rest of
Canada, there are discussions by the provincial government to shift some civil
services to work from home, a move that may influence future office demand.
• A push by developers, REITs and other players for co-working / shared office
projects to accommodate smaller, flexible office needs are coming down the
pipeline across both the CBD and suburbs.
• The Halifax industrial market continues to demonstrate strength. Demand is
unabated, and there is not enough supply, resulting in vacancy dropping
further. With warehousing and freight booming, shipping companies are eating
up industrial space, resulting in waiting lists for space.
10%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
$12
Statistics
Downtown
Office
QoQ
Suburban
Office
QoQ
Total
Office
QoQ
Total
Industrial
QoQ
Industrial Fundamentals
Vacancy Rate Average Asking Net Rent
12%
$8.41
11%
10%
9%
8%
7%
6%
4.9%
5%
4%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
$9
$9
$8
$8
$7
$7
$6
$6
$5
Avg. Asking Net Rent (PSF)
Vacancy Rate 20.5% 11.0% 14.8% 4.9%
Total Vacancy (SF) 1,078,314 862,879 1,941,193 409,613
Direct Vacancy (SF) 1,053,409 820,044 1,873,453 397,254
Sublet Vacancy (SF) 24,905 42,835 67,740 12,359
Industrial Availability Rate - - - -
Industrial Available Space (SF) - - - -
Avg. Asking Net Rent (PSF) $16.54 $14.29 $16.05 $8.41
Net Absorption (SF) -115,203 20,330 -94,873 226,304
Net Absorption (SF) - YTD -115,203 20,330 -94,873 226,304
New Supply (SF) 0 0 0 0
New Supply (SF) – YTD 0 0 0 0
Under Construction (SF) 0 100,000 100,000 0
Canada
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Halifax
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