Regina now has the lowest office vacancy rate in Canada, with Class A space at near 0 per cent vacancy and nothing available in Class B space. Overall, the vacancy rate is 1.8 per cent, according to Avison Young, which notes that the tight market has finally spurred developers into building.
"For years there was talk but not a lot of action," said Avison Young principal Dale Gressier."Now we are witnessing some of the most aggressive development of office buildings we've seen in decades."
The new construction includes the first new office tower in Regina's downtown in 20 years. Harvard Development Inc.'s 208,000-square-foot Tower III will not complete until 2013, however.
Other downtown and suburban office projects projected to open by next year include an 80,000-square-foot building downtown; a three-storey, 55,000-square-foot medical building, also downtown; and a 160,000-square-foot suburban business park at the Harbour Landing development. In all, about 500,000 square feet of new office space will complete within the next two years.
Demand for Regina office space reflects a mix of government and economic expansion. Royal Bank of Canada predicts Saskatchewan will lead the nation this year with real GDP growth of 5.3 per cent, after a national high of 6.3 per cent in 2010. As the capital city, Regina is expected to lead the pace, with a record high in building permits forecast for this year.
