Downtown office rent drops
Posted Apr 7, 2010 6:15 pm.
This article is more than 5 years old.
Downtown Calgary’s growing office vacancy rate is bringing down rents and companies are taking advantage.
Office vacancy rates in the core have skyrocketed in the last 18 months, allowing many firms to upgrade to better buildings.
Avison Young Commercial Real Estate reports higher quality buildings in the core have cut rents in half as the vacancy rate nears 10 percent.
Susan Thomspon, Research Manager for the firm tells 660News that is prompting some firms to get more “bang for their buck”
She says rates in some of the higher end office buildings have dropped 40 to 60 per cent over the last year and a half.
Thompson says the vacancy rate will continue rising over the next couple of years, eventually hitting around 20 per cent when the Bow building opens in 2012.
