The market has seen a noticeable decline in available space over the past year
The Regina office market is exhibiting signs of strong recovery, with the volume of available space falling significantly by the end of 2022, according to Avison Young.
Despite a slight uptick in the market’s vacancy rate from 17.65% in Q2 2022 to 17.75% in Q4, Regina saw approximately 18,000 square feet of absorption since the end of 2021.
Total inventory fell from 4.88 million sf in Q4 2021 to 4.7 million sf in Q4 2022.
“Overall competitive inventory has gone down,” Avison Young said in its latest market report. “The most notable building accounting for this change is Sask Energy Place, which moved from being part of the competitive inventory to being owner occupied.”
And while the average asking lease rate fluctuated – either falling (Class A down by $0.05, Class C down by 1.59) or increasing (Class B up by $1.28) between Q4 2021 and Q4 2022– the range of rates has remained consistent, Avison Young said.
This ranged “between $15 and $34 per square foot for Class A, $12 and $25 psf for Class B, and between $10 and $18 psf for Class C buildings,” the report said.
