The city of Regina, which has the lowest office vacancy rate in Canada, is proposing generous tax breaks for office developers. The city recently awarded a five-year property tax exemption to the developer of a 20-storey downtown office tower, and is considering extending a similar offer to all comers. The new Mosaic tower will open next year and represent the first major new office space in Regina in more than a decade.
The city is planning to provide a 20 per cent property tax discount for three years for developers of either Class A or Class B office space in the downtown area. The incentive would stay in place until the office vacancy rate reaches at least 5 per cent, according to city officials.
Currently, according to a study by commercial realtor Avison Young, Regina's Class A office vacancy rate is around 0.8 per cent, with its Class B office space even tighter.
