It’s a tale of two markets in Saskatoon, according to a new report from ICR Commercial Real Estate, as the provincial economy continues its slow recovery. The downtown office vacancy rate inched downwards to 16.8 per cent at the end of the third quarter, resulting in positive absorption of nearly 25,000 square feet of space.
The suburban market, however, saw an increase in the vacancy rate to 18.8 per cent and the negative absorption of more than 80,000 square feet.
“A flight to quality space will likely continue as existing office users look to migrate to higher-quality space,” the report said.
Most of that space is coming courtesy of a $300 million complex being spearheaded by Triovest Realty Advisors at River Landing. The marquee attraction will be Nutrien Tower, an 18-storey office building that will become the tallest in town when it opens in 2021 or 2022.
Average asking rates in the competitive downtown market are $19.20 per square foot while space in the suburbs is typically asking $17.50 per square foot.