Inventory levels also remained strong during the second quarter
Investor appetite for office space located in the outskirts of Halifax has noticeably increased during Q2 2023, according to Avison Young.
“We have been experiencing some generally positive movement on the office leasing front this year,” said Dave Kerr, Halifax-based senior commercial advisor and sales representative at Avison Young.
“As we wrap up the second quarter of 2023, the pent-up demand for leasing decisions that businesses have been putting off are now actionable,” he added. “This leads to more companies securing new spaces. This increase in activity was observed not long after the interest rates halted their upward trend in the first quarter and continues to increase on a weekly basis.”
Total inventory stood at more than 12.832 million square feet, with the downtown core accounting for the largest slice of the pie at nearly 5.72 million square feet of office space.
And while vacancy levels previously hovered near the 20% level, the market is exhibiting clear signs of improvement “with certain areas progressively trending closer to 12%.”
“Some outlying suburban markets are steadily beginning to see declining levels of vacancy,” Kerr said. “While there is a lack of newer development in these areas, the demand for space has risen.”
“This rising demand is driven by numerous factors, including lower rental rates, convenience of access, faster commutes with less time spent in traffic, and affordability (especially in terms of parking).”
