Halifax Office Market Remains Steady Despite Pandemic; Industrial Market Advances
HALIFAX, November 30, 2020 – The recently completed Q4 market statistics by Cushman & Wakefield Atlantic show that despite over 70,000 sf being newly advertised for sublease, the overall market remained stable over the recent quarter, with vacancy unchanged at 14.5%. While the sublease offerings are in the Central Business district (downtown), there was positive leasing activity in the suburban markets.
In terms of Industrial space, the market tightened by 60 basis points, from 9.4% vacancy to 8.8%, on occupancy gains in the Burnside market. Net Rent and Operating Rent moved upward by a total of 5 cents per square foot on average. This is the manifestation of enhanced port activity, and instability in global supply chains, resulting in greater accumulation of regionalized inventories.
“These trends are consistent with the previous periods since the onset of Covid” says Cushman & Wakefield Atlantic Managing Director, Bill MacAvoy. “While unanswered questions remain related to the sustainability of work from home arrangements after the arrival of vaccines, the majority of office occupiers are waiting until their lease expiry date to make any adjustments to their leased premises”.
MacAvoy continues “while we know that the office premises are under occupied by staff presently, rents continue to be paid. In terms of industrial space, searches are becoming increasingly more challenging for tenants, a sign of a healthier market for landlords”.
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