Office vacancies down in 4th quarter

Posted January 14, 2011, 8:51am EST

Source: Financial Post, Friday January 7, 2011

The national office vacancy rate across the country dropped over the past year thanks to improving economic fundamentals, CB Richard Ellis Ltd. says. The real estate company said Thursday the rate was 9.4% at the end of the fourth quarter of 2010, compared with 9.9% a year earlier. It noted office space is now being absorbed quickly in the market. "Some market observers predicted a glut of vacancies in Canada's major business centres this year, but it just didn't happen," said John O'Bryan, vice-chairman of the real estate company. National absorption was 5,075,208 square feet last year compared with a negative 2,848,842 square feet in 2009. CB Richard Ellis expects more positive news for 2011. "We've had good news over the past 12 months with respect to interest rates, housing trends and employment gains, with many companies announcing plans for expansion," Mr. O'Bryan said. Individually, most Canadian office markets remained stable or saw a slight decrease in their vacancy rate.