For most of us, when we think of real estate our thoughts go to residential properties. But there are other segments we use or work in everyday that also deal with the ups and downs of property markets.
One in particular is office space.
Ever since COVID when office buildings were vacated followed by the concept of Work from Home or WFH, landlords in this segment have faced an uphill climb as vacancies abound at a time when homeowners or renters are in fierce competition for space.
A recent report by Colliers points out that office rental rates in Saskatoon, for example, actually went down early in the year but have only recently found a bottom and are starting to strengthen. Further, absorption is negative….meaning more space is coming available even without new construction.
Regina is faring a bit better with vacancy rates declining – especially in suburban areas – which is giving rental rates a bit of a lift, aided by a significant renewal by one major tenant in the downtown core.
