Newmark Knight Frank Devencore Reports on Greater Ottawa Area Office Market
Downtown Vacancy Rates Continue to Climb
OTTAWA, ONTARIO -- (Marketwired) -- 05/14/14 -- In its Real Estate
Market Study published today, Newmark Knight Frank Devencore reported
that combined vacancy rates in downtown Ottawa's Class "A" and "B"
buildings have continued to increase and are now approaching 6%. Over
the course of 2013, the vacancy rate in Class "A" office buildings
rose from 3.7% to 5.3%, and the total amount of space available for
lease or sublet rose to just over 510,000 square feet. In the Class
"B" sector, vacancy rates over the same 12-month period rose from
4.0% to 6.3%, and the amount of vacant space jumped to almost 422,000
square feet. It should also be noted that the Class "A" and "B"
availability rate--which includes vacant space as well as space soon
to be vacated but currently occupied--exceeds 8%.
The two major office developments currently underway in downtown
Ottawa will augment the existing downtown office space inventory by
approximately 930,000 square feet and contribute to a further
increase in Class "A" vacancy rates over the next year. This is
making the leasing market in the downtown core increasingly
competitive. Morguard's Performance Court at 150 Elgin is essentially
complete and tenants have begun to move in. It has secured an A-list
of tenants, and as it comes online only about 50,000 square feet is
not spoken for. The Lorne Building redevelopment at 90 Elgin Street
is still underway. In the latter stages of construction, the project
is being carried out by Public Works and Government Services Canada
(PWGSC), the real estate arm of the federal government. This
17-storey, 650,000-square-foot building will be three times larger
than the building it is replacing at the site.
The Kanata market has been gradually strengthening over the past few
years, and vacancy rates have been steadily falling. Today, the
combined rate is at 11.8%, and just over 622,000 square feet of space
is available for lease or sublet. However, it appears that there are
still some consolidations talking place, and some of the major tech
players--including Blackberry and IDT--have been shedding space. The
high-tech industries remain volatile, which means that occupancy
levels in Kanata can shift by a few percentage points relatively
quickly compared to Ottawa's downtown core.
In Canada's major cities, the combined Class "A" and Class "B"
vacancy rate edged up from 4.5% to 5.9% in 2013. However,
construction activity remains strong across the country and new
towers are being built in virtually every city. The appetite for this
premium space also remains strong. In most instances, space in the
new towers, most of which are LEED-certified, is being rapidly
About Newmark Knight Frank Devencore
As part of Newmark Grubb Knight Frank, one of the world's leading
commercial real estate advisory firms, Newmark Knight Frank Devencore
is Canada's largest corporate real estate advisor and brokerage,
exclusively representing corporate, industrial and retail space
users. With offices across the country, Newmark Knight Frank
Devencore offers its global clientele comprehensive services that are
individually designed to ensure executive real estate decisions are
supported by effective strategies and professional execution. To
learn more about our capabilities, please visit www.devencorenkf.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial
real estate advisory firms. Together with London-based partner Knight
Frank and independently-owned offices, NGKF's 12,000 professionals
operate from more than 320 offices in established and emerging
property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one
of the most trusted names in commercial real estate. NGKF's
full-service platform comprises BGC's real estate services segment,
offering commercial real estate tenants, landlords, investors and
developers a wide range of services including leasing; capital
markets services, including investment sales, debt placement,
appraisal, and valuation services; commercial mortgage brokerage
services; as well as corporate advisory services, consulting, project
and development management, and property and corporate facilities
management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global
brokerage company primarily servicing the wholesale financial and
real estate markets. For further information, visit www.ngkf.com.
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
Devencore Ltd., Real Estate Agency
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