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.
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Vacancy Rate
Vacancy Rate
Q1 2021
Calgary Market
Office Fundamentals
Vacancy Rate Average Asking Net Rent
30%
$16
Key Findings
• Although office leasing activity increased in Q1 2021, most deals resulted in
reduced tenant footprints. Q1 2021 lease transactions were either inevitable
due to upcoming expirations the opportunity to capitalize on low rents and
greater incentives.
• Significant M&A activity as well as overall compression in the energy sector has
resulted in several large blocks of space coming back to market this quarter.
Tenants continue to prefer shorter-term deals and extensions, aiming to get
through the next year before making any major future space decisions.
28%
26%
24%
22%
20%
27.8%
$13.16
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
$15
$14
$13
$12
$11
$10
Avg. Asking Net Rent (PSF)
• Strong demand from logistics and distribution users contributed to strong
industrial leasing and sales activity, with Q1 2021 absorption on par with levels
experienced in 2020. This, along with a lack of new supply, drove vacancy
down, and we anticipate developers to break ground on new speculative
projects this year.
• Calgary remains well-positioned to attract larger users, driven by pent-up
demand in the large-bay segment and we anticipate continued interest in the
Balzac market as space begins to get leased within the city limits.
Statistics
Downtown
Office
QoQ
Suburban
Office
QoQ
Total
Office
QoQ
Total
Industrial
QoQ
Industrial Fundamentals
Vacancy Rate Average Asking Net Rent
8%
$12
Vacancy Rate 31.2% 22.5% 27.8% 5.4%
Total Vacancy (SF) 13,760,196 6,398,938 20,159,134 8,404,156
Direct Vacancy (SF) 10,269,702 5,043,756 15,313,458 7,672,593
Sublet Vacancy (SF) 3,490,494 1,355,182 4,845,676 731,563
7%
6%
5%
4%
3%
5.4%
$9.38
$11
$10
$9
$8
$7
Avg. Asking Net Rent (PSF)
Industrial Availability Rate - - - 10.5%
Industrial Available Space (SF) - - - 16,029,047
Avg. Asking Net Rent (PSF) $10.75 $16.01 $13.16 $9.38
Net Absorption (SF) -1,315,480 -198,886 -1,514,366 1,400,000
Net Absorption (SF) - YTD -1,315,480 -198,886 -1,514,366 1,400,000
New Supply (SF) 0 88,000 88,000 102,440
2%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
$6
New Supply (SF) – YTD 0 88,000 88,000 102,440
Under Construction (SF) 0 997,542 997,542 2,113,634
Canada
Victoria Vancouver Edmonton Calgary Regina Winnipeg Waterloo Toronto Ottawa Montréal
Halifax
Change language