May 28 2010
The housing sector may have boomed this year but office landlords just haven’t been so lucky. According to a report by CB Richard Ellis Group office vacancy rates across Canada are now up to 10.1% from 7.5% in 2009.
In addition, in order to close transactions, landlords are having to give big discounts anywhere from 15 to 30 per cent on the net rental rates says Stan Kawitz, founder and manager of Toronto-based real estate brokerage Real Facilities Inc.
Kawitz believes the increasing vacancy rate is fueled by a stream of newly constructed office buildings in cities like Toronto, Vancouver and Calgary.
On the plus side – the current landscape provides an excellent opportunity for rent paying businesses to lock in inexpensive lease rates.
Read More in the The Globe and Mail here.