At 1.8 per cent, Regina currently boasts the lowest office vacancy rate of all major markets in Canada. The current vacancy for class A buildings is a mere 0.86 per cent, while vacancy for class B+ premises is 0.28 per cent, or at virtually zero.
But the situation is about to change for Saskatchewan's capital as developers begin new office towers.
"For years, there has been talk, but not a lot of action. Now, we are witnessing some of the most aggressive development of office buildings we've seen in decades - and we're aware of much more to come," Griesser said.
Saskatchewan strong economics is driving demand for more office space, as evidenced by the 500,000 square feet of new product slated to come on stream between 2011 and 2013, including the first new downtown tower in 20 years.
New office construction currently underway includes Harvard Developments Inc.'s 208,000-square-foot Tower III at 12th Avenue and Hamilton Street in downtown Regina. The project is targeted for completion in 2013. Other downtown and suburban developments expected to complete construction before 2013 include a four-storey, 80,000-square-foot office building at Albert Street and 11th Avenue; a three-storey, 55,000-square-foot medical office building at Pasqua Street and Dewdney Avenue; a 160,000-square-foot suburban office park near the Harbour Landing development; and other projects in various stages of planning.
"It's not just the amount of space coming on the market that's of interest to businesses wanting to locate or relocate to Regina, it's the type of space and location," noted Richard Jankowski, Avison Young principal and managing director of the Regina office. "The direct economic impact of these projects will be tremendous, notwithstanding the fact that these types of developments will lead to business growth and expansion."
Saskatchewan is apparently already poised to experience one of the most aggressive and sustainable economic-growth patterns in its history. Royal Bank of Canada predicts the province will lead the nation again with real GDP growth of 5.3 per cent in 2011 after a national high of 6.3 per cent last year.
Regina recorded a 202.2 per cent year-over-year increase in the value of its building permits as of January, jumping to $108.2 million from $35.8 million the year prior, partly due to new office construction.
from Western Investor, April 2011
